Today, Apple’s stock price has surged nearly six percent, which is a large amount for any company. The rally is due to extremely bullish comments from Topeka’s Brian White. White believes that the recent drop in Apple’s share price has little to do with the fundamentals of the company and suggests that the stock is ready for significant growth.
In our view, the sell off in Apple’s stock over the past eight weeks has gotten to the point of being “insanely insane” given the depressed valuation (CY13 P/E of 7.6x ex-cash), new blockbuster products for the holiday season, the attractive long-term growth opportunities that lie ahead and the Company’s ability to distribute significant cash flow to investors. Those investors that have missed Apple or have been under-weight the stock, now have another opportunity to buy Apple before sentiment takes a turn for the positive during what has historically been the strongest quarter of the year for the stock.
Back in September, Apple’s stock price broke the $700 price mark for the first time ever, but has seen a significant fall since.
Today, Apple has announced its financial results for the first calendar quarter of 2012 and second fiscal quarter of 2012. For this quarter, Apple reported a revenue of $39.2 billion and a quarterly profit of $11.6 billion, or $12.30 per diluted share. This is compared to the revenue of $24.67 billion and net quarterly profit of $5.99 billion, or $6.40 per diluted share in the year-ago quarter. Apple’s quarterly profit and revenue were both company records for the March quarter.
Gross margin was 47.4 percent, compared to 41.4 percent in the year ago quarter. International sales accounted for 64 percent of the quarter’s revenue.
Apple sold 35.1 million iPhones last quarter, which is up 88 percent from the year-ago quarter, and the company sold 11.8 million iPads during the quarter, up 151 percent year-over-year. The company sold 4 million Macs during the quarter, which is a unit increase of 7 percent over the year-ago quarter. Apple sold 7.7 million iPods, representing 15 percent unit decline year-over-year.
Apple’s guidance for the third quarter of fiscal 2012 includes expected revenue of $34 billion and earnings per diluted share of $8.68.
Just last week we reported that Apple’s share price had exceeded Google’s for the first time ever. In fact, this morning AAPL is trading about $8 higher than GOOG. Today, Apple’s share price has continued its amazing growth by moving up another 1% to briefly hit a market capitalization of $600 billion. This new milestone comes just under six weeks after hitting $500 billion. AAPL is now up nearly 60% since the beginning of the year.
In fact, the $600 billion market cap is nowhere near what analysts are expecting the company’s market cap to reach. Analysts think that Apple is on its way to a trillion dollar market capitalization over the next year or so, which would be the first company to ever do so.
Also, Apple is now just within a few billion dollars of taking Microsoft’s title of most valuable publicly-traded company ever. In December of 1999, Microsoft’s market cap was $604 billion, but when adjusted for inflation, it would be worth over $800 billion in today’s dollars.
Just last month we reported that Apple’s share price had touched $600, which was just one month after hitting $500. At that point, it was a given AAPL would pass Google’s share price in no time. Yup, that’s what has happened in less than a month. Today, Apple’s share price closed at about $633, making the company’s shares now more expensive than Google’s. Apple’s market cap is now over $590 billion, nearly three times larger than Google’s.
In the past one year, Apple’s share price has seen a growth of 160 percent, compared to just 12 percent gain Google’s share price has seen. Now, Apple’s market cap is now larger than the combined valuations of Google, HP, Dell, RIM, Microsoft, Nokia, AMD and Motorola Mobility, with a couple billion dollars to spare. Wow. In fact, even to this day, Apple’s share price is undervalued. While AAPL is on its way to a $1,000, Apple’s is on its way to become the first $1 trillion company ever.
In the end, largest amount of marketshare, “open”, and free products continue to “win”, duh.
Apple has just updated its Investor Relations page on its website to notify its shareholders and the general public that the company’s second-quarter financial conference call will occur on April 24th at 2 PM PST.
The company has posted the following on its investor relations page:
Apple plans to conduct a conference call to discuss financial results of its second fiscal quarter on Tuesday, April 24, 2012 at 2:00 p.m. PT
In addition, the earnings call will be streamed live to shareholders and press via Apple’s website, The stream will allow iOS device owners to listen to the call if their devices run iOS 4.2 or higher. Also, the stream will be accessible via a Quicktime-enabled computer.
On January 24th, Apple reported its best quarter ever. Apple reported $46.33 billion in revenue, with earnings of $13.87 per share and net profit in Q1 was $13.06 billion. Though Wall Street doesn’t expect Apple to have a big a quarter as last time, it has steadily been raising its projections based on the new iPad and strong demand for the iPhone 4S.
When Apple announced its quarterly earnings earlier this year, it was discovered that the company’s pile of cash was nearing the $100 billion mark. Since then, everyone has been curious what they they will be doing with it.
Now, the wait is over! Today, Apple has announced that it will host a conference call on Monday at 9 a.m. Eastern, 6 a.m. Pacific to discuss what it plans to do with its $100 billion cash balance. Tomorrow’s call will be hosted by Apple CEO Tim Cook and CFO Peter Oppenheimer. Apple will be live streaming the call tomorrow.
WEBCAST: Apple will provide live audio streaming of its conference call using Apple’s industry-leading QuickTime® multimedia software. The live webcast will begin at 6:00 a.m. PDT on March 19, 2012 at www.apple.com/quicktime/qtv/call31912 and will also be available for replay for approximately two weeks thereafter. The webcast is available on any iPhone®, iPad®, iPod touch® or any Mac® or PC running QuickTime 6 or later. If you do not have QuickTime installed on your Windows PC, it is available at www.apple.com/quicktime.
The company has also said in its press release that Apple would not provide an update on its current quarter, nor would it discuss any topics other than cash.
Just yesterday, we reported that Apple’s share price was closing in on Google. In fact, the share price closed at an all time high price of $589.58 and in after hours, it closed at $591.50. Today, the company’s share price touched the $600 mark this morning, just a month after reaching $500/share for the first time.
However, the stock closed at $585.56. Ever since the company reported a blowout earnings for the first fiscal quarter of 2012, the share price has risen nearly $180/share, or nearly 40%, in under two months.
Apple is the most valuable publicly traded company in the world, worth nearly $560 billion, and is on its way to become the first trillion dollar company, more than $150 billion higher than second-place ExxonMobile. Fact — During the dot-com boom in December of 1999, Microsoft’s peak market cap was $684 billion. At this rate, it seems to me that Apple’s on its way to pass that.
A little over a month ago, we pointed out that Apple’s share price has soared past $500, and it was continuing to reach new all time highs. Ever since the company reported blowout earnings for the first fiscal quarter of 2012, it has been rising and will continue to. Now last month, I pointed out that while Apple’s share price continued to grow, Google’s continued to stay steady or fall.
Turns out, in a matter of no time, AAPL is closing in on GOOG. Today, Apple’s share price has closed at an all time high price of $589.58 and in after hours, the share price closed at $591.50, which makes it less than $30 from overtaking GOOG. In fact, Apple is up 45.6 percent for the year. Just take a look at the graph below. It is mind blowing! In addition, Morgan Stanley has bumped up its target price for the stock to $720, with a 12-month bull case estimate of $960.
Remember when Exxon Mobile was the most valuable company in the world? Well, now Apple is and their market cap is at $549.71 billion, which makes it worth more than the entire US retail sector’s market cap! Apple may become the first trillion dollar company in our lifetime. Doomed indeed.
Wow, just a couple of weeks ago, I reported that Apple’s share price has soared past $500. At that time the share price was at $468, and had begun to soar past $470, $480, and $490. Following today’s release of invitations to the company’s March 7th event for iPad 3, Apple’s share price had closed the day up $9.65, or 1.84 percent, which made Apple’s market cap very close to $500 billion. Market cap is the value of a company.
To put that in perspective, the company that used to be the world’s valuable company (Exxon), was worth $411 billion as of Tuesday afternoon, or $90 billion less than Apple. Better yet, Apple is now worth as much Toyota, Volkswagen, Daimler, Honda, Ford, Nissan, and GM combined! The share price has been rising ever since they reported blowout earnings for the first fiscal quarter of 2012. In fact, just three months ago, Apple’s share price was nearly $200 less.
I’d also like to once again point out Google’s share price growth, but wait! It isn’t seeing a significant increase at all. In the past three months, GOOG has seen an increase of only 5%, while AAPL has seen an increase of 42%! If marketshare meant everything, why is GOOG struggling to see growth, while AAPL is seeing phenomenal growth?
Clearly, Apple’s doomed and is just a fad.
Last week, I pointed out that while Apple’s share price continued to grow, Google’s continued to fall. At that time the share price was at $468, and had begun to soar past $470, $480, and $490, which would make it only ten dollars short of closing at $500. Today, Apple’s share price soared past $500 as trading opened this morning. It has been rising every since the company reported blowout earnings for the first fiscal quarter of 2012. The share price has increased $75/share, or nearly 18%, in just under three weeks.
Remember when Exxon Mobile was the most valuable company in the world? Well, now Apple, is worth more than $469 billion, making it the most valuable company in the world by a significant margin. Exxon Mobile, the second most valuable company, is worth approximately $400 billion.
Believe it or not, a share of $AAPL stock now costs as much as the original iPod. If you spent that money on Apple stock instead back then, it would be worth $27,556 today! It really is only a matter of time until Apple’s share price surpasses Google’s. $110 dollars and counting…