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Is Apple's stock poised for another jump?

by: E. Werner Reschke | Aug 11, 2014

AAPL Stock 2009-2014

For the past several years owners of Apple’s stock must be pleased with the company's leadership. The stock price hit a lul during the first half of 2013, but since then AAPL has returned to its pervious value. The real question is what will happen next.

The stock’s split of 7:1 earlier this year made it much more affordable to a wider audience of investors. While Google sits between $500-700 on most days, only investment firms and wealthy individuals can dabble in stocks with values so high. Tim Cook used his understanding of the stock market and the bias of investment firms to split the stock so more individual investors could afford to own AAPL.

The big question now is the age old question, “what will happen next?” With two or three special events this fall, along with the introduction of a new iPhone model, new iPads and a new category product (iWatch or Apple TV), the Apple’s stock should only move north. No other company has the potential to launch anything close to the line-up we expect from Apple this fall.

While stocks are a risky investment, those who have been invested in the market since the crash of 2008, have done very well for themselves. The biggest risk to Apple’s stock price at this point, is not the company's product road map, management or competition, but rather the stock market itself. The stock market sits at all time highs and continues to climb, but as most of us know, what goes up, must come down (eventually). 

For the long-term investor, Apple’s stock is a bargain, as there is no indication that Apple or its competitors are going to cause the price any grief. But for the short-term investor it may be a bit more tricky.

All we know is that AAPL sure looks like a bargain in August before the flurry of new products are ready to be introduced.


E. Werner Reschke does not own any stock in Apple, and is not licensed a financial consultant.

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1 Comment

  1. mhikl ~ August 14, 2014 17:53

    History trumpets that I am no economist but I have heard tales of the 30s crash and the latest crash is certainly taking its time to right itself. But if the first is any indication of what lies ahead, then close to twenty years more sits between us and more favourable times. And I do not wish to wait that long so the trick, which I have not mastered, is when best to call it quits and take in the spoils of these times. • • We might sneer that Apple sits pretty whilst Amazon, Samsung and MicroSoft look so darn sad, but we must ask ourselves if they are the presagers of what lies ahead. #

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