This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Put Away the Prozac, Apple's Just Fine

Stocks in this article: AAPL AMZN NOK DELL

NEW YORK ( TheStreet) -- After collectively holding their breath for several weeks, Apple (AAPL - Get Report) investors can finally begin to exhale.

With $600 only one small leg higher and within a reasonable bullish move, we may finally hear the last of the dire predictions of a $400 Apple. While investors that did their homework knew it would take a black swan event to crush the shares down that far, it didn't seem to prevent many in the media from declaring Apple is all but dead.

Some of the hyperbole is understandable. It's hard to make sense of a market that places Amazon's (AMZN - Get Report) share price above $200 while at the same time driving Apple's shares under $600.

For a few days, Apple's stock was on a big enough sale that the dividend rose to 2%. Never mind the fact that Apple produces products in demand enough to warrant incredibly high margins, once the snowball began rolling down the hill it gained in size and speed.

Amazon has so far offered little more than improving revenue. Revenue, it appears is enough if people like the company. Should revenue be enough? Of course not, but the line of thinking goes something like this: As soon as Amazon is finished building out the world's greatest online ordering system (something that has been in the works since before the dot com bubble), Amazon will be able to raise prices and or lower the capital investment, and profits will roll in.

Meanwhile, back at 1 Infinite Loop (Apple's address), iPhone 5s and iPad minis are selling as fast as the iFactories can produce and ship to the iBuyers. Apple has many other products including the Mac, iTunes, iPod, and others that are selling like gangbusters, but once again, it doesn't seem to make much difference to those who are quick to "inform" you of Apple's impending irrelevance.

For doomsayers it all makes perfect sense. Perfect sense if you consider operating margins above 30% and profit margins above 25% mean the end is near. You don't see margins like that in Dell (DELL - Get Report), Nokia (NOK - Get Report), and definitely, not in Amazon.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,240.56 +49.19 0.29%
S&P 500 1,994.81 -7.35 -0.37%
NASDAQ 4,617.8580 -20.1360 -0.43%

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