Apple stock tops $100, new products point to further gains

Posted on by Mike Evans

Today Apple stock breached the crucial $100 mark, equivalent to $700 before this year's seven-for-one stock split, and is within a whisker of the adjusted all-time high of $100.82 achieved in September 2012. Wall Street is turning bullish on the stock and today Morgan Stanley said that despite the recent history, "This time it's different for Apple." Writing in Business Insider, Jay Yarrow cites eight reasons why Apple is heading for a giant autumn performance:

  1. Institutional ownership of Apple shares is significantly lower than it was in 2012
  2. Apple has significantly increased its cash return to shareholders
  3. Analysts are increasing, and will continue to increase, their estimates for Apple's business
  4. Apple has a stacked line-up of new executives and new hires
  5. Apple has increased research and development spending
  6. Apple's going crazy with mergers and acquisitions
  7. Gross margin seems to be stable now
  8. Online services have matured into real business for Apple, and there's room for bigger things

Quite apart from these advantages, Apple is entering a period of major product launches, including the new iPhone 6 and, highly likely, a watch of other wearable device. Despite the market being flooded with smart watches, Apple has had sufficient time and experience to produce a ground-breaking product and many analysts expect that the rumoured iWatch will succeed where others have failed.

Disclosure: Macfilos owns shares in Apple Inc.

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