This Day On The Street
Continue to site
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

Stock on Fire: How Apple Trades Into a Product Launch (Update 1)

Updated from 10:38 a.m. EST to reflect Apple becoming world's most valuable company in the seventh paragraph. NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) is widely expected to announce a new iPhone and perhaps a new iPad next month. Historically, shares have run up into a product announcement, and it looks as if this time is no different.

Courtesy of Sanford Bernstein, above is a chart showing how Apple shares have done into a product release.

Sanford Bernstein analyst Toni Sacconaghi notes that shares of Apple outperform materially in the eight weeks prior to a new product's announcement date: "Average outperformance during this period has been 1100 [basis points] during previous iPhone launches." Sacconaghi rates Apple at an overweight with a $750 price target.

What We Know About the iPhone 5

Is Apple's product launch run done? Apple shares are up 24% in the past three months (twice the Nasdaq return) and touched a new all-time high during Monday morning trading, at $658.87. Over the past one month, Apple shares have gained 9%.

Given that Apple may also launch an iPad Mini, Sacchonaghi also provided data on how Apple has performed into the release of the tablet. Apple has outperformed by 900 basis points running into the launch of Apple's tablet.

After the announcement, shares of Apple have tended to remain flat, and even underperformed in the two months after a launch. Sacchonaghi believes this is because "the Apple blog-sphere has become increasingly effective and predictive, with major details of new products largely known before the announcement date."

Earlier Monday, Apple surpassed Microsoft (MSFT) to become the world's most valuable company. Apple was worth $623 billion, besting the $620.58 billion Microsoft was worth at its peak in 1999, according to Standard & Poors.

Interested in more on Apple? See TheStreet Ratings' report card for this stock.

Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>Contact by Email.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $112.12 2.39%
FB $93.24 0.83%
GOOG $643.61 0.70%
TSLA $220.69 -2.66%
YHOO $32.52 0.46%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs