When the stock was above $700, everyone was talking about it. When the stock dropped below $400, everyone was talking about it.
Ever since the big stock drop earlier in the year, I notice most people talk about Apple now in a more skeptical and even negative way. It sounds almost pre-determined that Apple jumped the shark. It was once the king of the hill but now it's lost its way.
It no longer has Steve Jobs. Its margins are lower. Where's the innovation? You've heard these choruses over and over.Yet, very quietly, Apple is now closing in on $510/share. I can't help but be reminded of the pessimism surrounding Facebook (FB) back last November in the teens. When things are bad (and good), people love to pile on. Especially in this age of Twitter, no one misses a chance to take a shot at a company or person when they're really down on their luck. At the same time, when a company is getting slammed it's next to impossible to imagine it getting back on top again. If someone had told you last November -- right before the IPO lock-up expiration -- that Facebook would have a chance of getting to $60 by the end of 2013, you would have laughed in his or her face. By the same token, today it's difficult to imagine the scenario where Apple stock gets back above $700. Yet, the move may just be starting again. Next week, we will find out how Apple's September quarter ended up. That will include a couple of weeks of sales for the new iPhones. Based on the recent Verizon (VZ) data, most are thinking that 32 million iPhones sold in the quarter is a lock and some are predicting several million more. However, the bigger deal in the near term for the stock is how the holiday quarter shapes up. Analysts will be listening closely for indications from Tim Cook and Peter Oppenheimer and what kind of modified guidance they provide for the coming quarter -- keeping in mind that guidance is usually very conservative.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV