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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dramatic 48-Hour Shift in Apple Sentiment

Stocks in this article: AAPL

NEW YORK ( TheStreet) -- Six months ago, as we forecast a second-half 2013 Apple (AAPL) run, it was mentioned that leg two of the rally would depend on the headlines. If headlines in the aftermath of the Sept. 10 event suggest Apple innovation is back, then the stock would be in position to run from $500 to $600. I must say that since the stock dipped below $450 on Tuesday, this 48-hour shift in sentiment has been shock and awe.

Based on the extremely favorable iPhone 5S reviews from a variety of outlets from Wall Street Journal and USA Today, to CNET, TechCrunch and, of course, Jim Dalrymple and John Gruber, to name a few, it is now expected that there will be lines and shortages for the 5S over the coming weeks and months.

The M7 coprocessor is a hit. The fingerprint Touch ID is so solid and proprietary that not even Samsung is likely to get away with a copycat version.

The first leg of Apple's run from $400 to $500 was a run defined by big-money intelligence in the midst of a doubting consensus. This second leg will be different. The masses will be on board. As of Wednesday, they already are.

Look no further than the cover of BusinessWeek to see what I mean. Tim Cook is being hailed as the backbone of Cupertino. As the smartest guy in the room, he has withstood the absurd and unprecedented barrage from analysts and critics to turn Apple into a clone of its lesser competitors.

You don't hear analysts clamoring for Porsche to make a mass-market vehicle or for Tiffany to sell cubic zirconia. Apple generates more profit per quarter than Amazon (AMZN) has made in its entire existence and yet Jeff Bezos is the anointed one?

Bezos is nothing more than a Wall Street magician who understands how to play forward-looking investors like puppets. The management team of CEO Cook, Senior VP, Design Jonathan Ive and Senior VP, Software Engineering Craig Federighi is the real deal.

The substance of Apple as measured in pricing power and profit remains unmatched. Cook's decision to release a high-margin iPhone 5C that is easier to manufacture than the 5S means that Apple now has a backup product to help fill a global supply chain that will be begging for iPhones between now and the end of the Chinese New Year.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,660.80 +303.93 1.75%
S&P 500 2,045.65 +32.76 1.63%
NASDAQ 4,722.1450 +77.8330 1.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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