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

Apple: Everything You Didn't Want to Believe May Be True

Cook talked about "new product categories" coming in the fall and throughout 2014, which is sure to whet the appetites of Apple bulls, but a weak June quarter is playing on investors minds right now. JPMorgan analyst Mark Moskowitz believes "the soft Jun-Q outlook could weigh momentarily and our estimate revisions result in our price target declining 25%." Moskowitz rates Apple "overweight," but cut his price target to $545 from $725.

New product categories could be the oft-rumored iWatch, an Apple television and new software and services that Apple unveils as it tries to become more than just a hardware company. In the earnings release, Cook said, "Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline."

By mentioning software and services, he is continuing to alter the perception that Apple is more than just iPhones and iPads. This will take some time, and growing software and services revenue to a larger piece of the pie will help do that.

There was one hint that should give investors hope on that front. Piper Jaffray analyst Gene Munster asked about the payments industry, and Cook said the industry is "in its infancy," and "it's just getting started and just out of the starting block."

Right now, Apple has become a mature tech company, growing above the rate of the industry, but not at the lofty levels of 2012. In order to get Apple back to what it was, innovation needs to show itself in the form of new products, new categories and strategic acquisitions that will help differentiate Apple from everyone else.

Otherwise, Apple will never be as good as it once was.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 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
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 $93.75 -1.10%
GOOG $693.00 0.29%
FB $117.53 0.69%
TSLA $240.75 -2.80%
YHOO $36.61 0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.87 -9.94 -0.48%
NASDAQ 4,775.8150 -29.4760 -0.61%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs