This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Cloud Bores Investors, But Sets New Path

SAN FRANCISCO ( TheStreet) -- Following Apple's (AAPL - Get Report) cloud and other software announcements Monday, the gadget maker's stock is down about 3% over the past two days, highlighting investors' disappointment in the lack of hardware-based excitement the firm is known for fostering in past WWDC confabs.

Analysts, however, applauded the news, saying that iCloud is one of Apple's most important product launches of recent years.

"While it is unlikely to move the financial needle at Apple anytime soon, we believe iCloud is significant as it increases the stickiness of the Apple ecosystem," said Brian Marshall, an analyst at Gleacher & Company, in a note released on Tuesday.

"We believe the tight integration of Apple's Mac OS, iOS, and iCloud offerings creates an extremely sticky customer base," said Michael Walkley of Canaccord Genuity. "As such, we believe a growing and loyal user base will result in strong devices sales and earnings growth for the next several years."

iCloud tightens the relationship between the tech giant and its customers, who can now tap into Apple's IT infrastructure for souped-up services such as cloud-based document storage and iTunes in the cloud. With wireless syncing across all Apple devices, the Cupertino, Calif.-based firm is also making it easier for consumers to share cloud-based information across multiple gadgets.

"This announcement substantially enhances the value of the platform," said Bill Shope, an analyst at Goldman Sachs, adding that managing multiple iOS products is now much easier. "Most important, we believe that Apple's cloud offerings require cutting-edge compute infrastructure and a tightly integrated platform, which few companies will be able to fully replicate."

This is hardly a surprise to anyone who has followed the mysteriously rapid expansion of the company's new data center in Maiden, N.C., something which Steve Jobs highlighted during his keynote on Monday. To emphasize the vast size of the Maiden site, the Apple CEO pointed to an aerial image of the data center where two people appeared like tiny specks on its roof.

In the absence of any shiny new gadgetry, Jobs was the real star of WWDC. Doing his utmost to make the cloud seem sexy, the iconic Apple chief urged users to move the center of their "digital lives" to the cloud, demoting the PC -- and the Mac -- to being "just a device." Jobs also made great play of iCloud's ability to integrate seamlessly with a user's apps, explaining in his typical fashion that "it just works."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.24 0.70%
FB $83.01 0.11%
GOOG $555.17 -0.65%
TSLA $190.40 -2.00%
YHOO $44.47 0.61%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs