Investing in Apple?
Apple is breaking its own records left and right and is poised to top 400$ a share for the first time in its history. AAPL has skyrocketed over the past 52 weeks and is currently outperforming gold. Is it creating its own bubble here? What are some experienced monkeys opinions on long-term investing in this company?
Except for the price per share, you could have written this post in 2006. Food for thought.
Interested as well.
I've had positions at Apple and Google for about 2 years now...buying and holding. Is it time to sell either?
I like the fundamentals of both. You'll see multiple expansion in Google, I think, as Google+ knocks Facebook backward a bit (assuming Google+ remains popular and gains traction). So there should be some upside there.
Apple should dominate with its iPad sales for a short while longer - although the hysteria over the touchscreen netbooks may die down as trad PC firms bring their own Android-powered versions to the market in droves over the next 12-18.
I wouldn't sell either right now.
Apple still has room for growth. It still has relatively low market share in some key segments and countries. I don't have a position in it in my fund, but my dad has a couple hundred shares or so. It's still a good stock to own, should outperform the market.
I really like Apple right now if you're willing to hold LT. It's tough to see a lot of near-term catalysts outside of earnings announcements to push the stock too much higher, as the market has developed sort of a "what's next?" attitude about the stock. However, the current valuation suggests rather modest growth expectations compared to what they have done recently, so if they can maintain growth anywhere near what they are doing now, there is still potential for huge upside.
My idea is that Apple TV is going to be huge in a few years once Apple figures out how to sell enough content for consumers to want it. Consumers seem to be willing to move to streaming services like Netflix/Hulu from traditional content providers in order to cut costs and only pay for content they are actually going to use (vs. getting a cable plan with 100 channels when they will only watch 5). Don't think it's too crazy to think that either cable providers or individual channels will begin offering their content online, and I think that given their first-mover advantages in several product catagories, Apple is likely to capitalize first by providing access to this content through Apple TV, whether it is the rumored flatscreen TV, or current standalone device. Between device sales and the percentage of content sales they would take, I do think this is a major opportunity.
The valuations are good, however I have a feeling that all it is going to take is one flop to burst the bubble. The hype has never been tested by a non hit.
Stock price alone does not make a bubble. Bubbles usually happen when stocks trade at crazy multiples. Apple has a reasonable P/E right now.
Regardless of P/E or any fundamentals I still think Apple is a bubble. What happens when this apple obsession wears off? A company is not healthy when they move away from their foundations, in this case the MAC computers and their business is now dominated by essentially 2 products. Maybe I am off base here but I feel that when Apple releases its 1st dud, that we could see stock prices slide ~ 30% if not more.
I'm of two minds on AAPL.
While I would NEVER own an Apple product, I'd buy the stock with little hesitation. The company is extremely well managed, always outperforms, and is a consistent winner.
If a company selling crack went public, I'd buy that stock too - for the same reasons (ridiculous demand, mushrooming market penetration, etc...). But never the product.
I'll invest in Apple as long as hipsters buy their products. All Apple customers are like ambassadors for their products; "Hey, I just got this awesome. It does things I didn't even know I wanted.... etc." On the other hand; I bought 5k Apple @ $27 back in November '04. Now, I only hold 1k due to securing gains and I still don't own a single product from Apple. Riding a bull market isn't easy.
After what happened and what will happen to the management of Apple, can anyone attest here that it is still worthwhile to invest in Apple?
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