NEW YORK (TheStreet) -- The Apple (AAPL - Get Report) headlines this week focused on Tim Cook & Co.'s largest acquisition ever -- the $3 billion buy of Beats, a high-end headphone maker and music streaming service. But investors are less interested in how Beats' founders Dr. Dre and Jimmy Iovine can transform Apple's music service than in what Apple has hidden under the tarps.
In an interview at the Code conference this week, live blogged on Recode.net, Apple SVP Eddy Cue said Apple has a better product pipeline now than it has had in decades. (Jimmy Iovine then joked that Apple throws tarps over everything when he walks in.)
The pipeline comment has encouraged investors on StockTwits.com to buy greater stakes in Apple in anticipation of the launch of game-changing products. Sentiment on the stock is 90% bullish, according to StockTwits' analytics.
@Rolltidetrader I bet the house... Don't fail me now TC ? Michael Brownlee (@OptionsAva) May. 29 at 07:00 PMApple investors are most excited about the prospect of a new iPhone. Analysts and journalists have speculated that Apple will debut a 5.5 inch screen version of the iPhone with scratch-resistant sapphire glass, produced by GT Advanced Technologies (GTAT). A larger screen would help the iPhone compete with Samsung's Galaxy Mega, which boasts a 6.3 inch HD screen and a Google (GOOG) Android operating system. Google Android phones have taken market share from the iPhone and now dominate the smartphone market. 80.2% of all phones sold in 2014 will be Android devices, according to a May 28 IDC report. Apple's market share is expected to drop from 14.8% in 2014 to 13.7% by 2018.
Talk of an iWatch has also generated considerable buzz.
Apple Product Roadmap: iPhone 6, Foldable iPhone, iWatch http://stks.co/j0fRG $AAPL ? ValueWalk (@valuewalk) May. 30 at 08:37 AMSome investors said that the focus on hardware is misplaced. They pointed to a Goldman Sachs analyst note, published Friday morning, that claimed software would be Apple's long-term growth driver.
"@Street_Insider: Apple $AAPL Price Target Raised to $720 at Goldman; Next Big Thing Isn't Hardware, Says Analyst http://stks.co/i0fPX" ? Darcy Keith (@eyeonequities) May. 30 at 08:29 AMSee page 2 to hear Goldman Sachs' take on the stock.