Tuesday, December 14, 2010

Firing On All Cylinders: Apple Inc.

One of the largest and most prestigious investment firms of them all, Goldman-Sachs, yesterday raised its 12 month price target for Apple's stock which, at the time of this writing was $321, to a whopping $430 per share based on booming iPhone and iPad sales.

As far as the iPad goes, Goldman-Sachs analyst, Bill Shope wrote:

"We believe significant growth and profit opportunities for this platform still lie ahead," and that...... "As a result, we expect revenue and earnings expectations to continue to trend upward, and we view the shares as attractive at current levels."

It's not only the iPhone and iPad that are growing either, but Mac sales are growing rapidly as well. In fact, also yesterday, NPD data shows Apple on track to sell record 4.3M Macs in (the) Dec. quarter. This would make for another quarterly record of Mac sales, thus topping the last record that saw Apple shipping approximately some 3.89 million Macs.

When you consider that according to some, the iPad is the Mac for the masses, then it also becomes clear, as Wired Magazine posted, that "Apple Is (the) Number 1 Computer Seller — If You Count iPads" in the U.S. and the third largest worldwide! However, next year, some are speculating that the iPad may, in fact, actually surpass the sales of traditional Mac desktops and laptops sales. Its already close to that now!

Interestingly enough, despite the fact that Apple's stock is now $320 plus, many consider Apple's stock to be downright cheap as CNN/Money recently posted. How high the high-flying iPad and iPhone will eventually take it, well that's the 64 million dollar question, or in Apple's case better make that the 64 billion dollar question, give or take a nickel of course.

In conclusion, even though Apple is now one of the world's largest and most successful companies in the world, with a market cap north of 295 B, under Steve Jobs it is still pretty much run and acts more like that of a small startup, with many believing that most of its glory days are still laying ahead of it. One thing is clear, however, is that Apple, with its iPad, iPod, Mac and the iPhone, has accumulated one of the biggest cash of stash anywhere, a virtual piggy bank that should be getting a lot bigger since its hot selling products are almost like having a virtual license to print money.

And that's my 2 cents 4 the day 4 this Tuesday, the 11th. day before Christmas, 2010

Modified piggy bank via: WPCLIPART

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