$aapl where is Apple Stock Headed – July 2010 After record Earnings

An article by pgupta    No Comments

So Apple reported their earnings on Tuesday night on 7/20. Highest ever earnings reported by Apple. Apple rose almost 20$ within a matter of 1 day and then during the day entire market decided to take a U turn. Apple could not contain its gain during After hours trading. Apple however did move up from its last close on Tuesday right before earnings. So is that good sign or a bad sign? No one really knows. Technical traders will out claiming one thing, fundamentalists will tell you another thing, Apple lovers will describe a whole another story.

Best way to trade any stock is usually based on your guts. You have to gather info from various sources and then call the shots yourself.

Lets look at what major factors Apple has currently:

Positives about Apple during Q3

1. Record sales for iPad & iPhone
2. Upbeat market sentiment about $aapl after earnings
3. Superior products
4. Steve Jobs did an awesome job by retaining Apple lovers by admitting to slight problems with very limited number of iPhone 4.
5. Continued research into product improvement
6. New product line up – This is unannounced as of right now. This will unfold in near future on its own
7. Potential Introduction of iPhone with other careers like Verizon & T-Mobile
8. Launch of Apple products in other countries

and the list goes on and on and ……

Negatives about Apple during Q3

1. Consumer Reports claim about Antenna problem with iPhone 4: Well as Apple has reported, problem is limited to very few people. Less than 1 percent of total iPhone 4 owners. So this probably not a such a huge deal
2. Apple has become too big. Now its time for others to try to bring Apple down. There will be several companies conspiring. If Apple is truly Amazing, it will come out even stronger. If $aapl breaks 273-275 range, it appears it might soar to 330$ very soon. It will be fun ride thats for sure.
3. Overall economic conditions: Well no one can do anything about that. But can you really stop a company expanding 78% year over year from reaching new highs every day, every month?