Mega-investor Carl Icahn calls buying AAPL a ‘no-brainer’.


Apple just had a killer quarter. In fact, it was the most profitable quarter for any company in history. As such, Apple stock is up 5 percent since Wednesday trading.

But has Apple peaked? Not according to legendary investor Carl Icahn, who recently told CNBC that he was not only raising his own Apple stock price target, but called buying AAPL a “no-brainer.”

“I don’t recommend too many stocks, I don’t like to do that unless I think it’s a no-brainer,” Icahn said in the CNBC interview. “And this one is sort of amazing to me, because you know every decade you get one of these — maybe two or three…. I guess we’re going to have to revise our guidance.”

Icahn is a mega-investor in Apple, owning more than $4.4 billion in Apple shares. His relationship with Apple is a complicated one, though: Other Apple investors have called him a Johnny Come Lately as Icahn rallied shareholders to (successfully) demand a stock buyback.

It’s also been said that Icahn might have an ulterior motive in all of his plotting within Apple: He might want Apple to buy Nuance.

So it’s possible this is just the latest iteration of Icahn’s plotting. But at least he believes in Apple … for now.

AAPL in the black for 2013, shares expected to climb.

AAPL shareholders were cheering last Friday because of all the foot traffic going through Apple Store doors. But that wasn’t their only reason to celebrate. The day also marked the first time AAPL stock was in the black this year, closing at a high of US$556.07. The stock price started the year out at $549.03 on January 2, 2013, before plummeting to a low of $390.53 on April 19.

Since the 19th of April, the stock has been on shaky ground, recovering, then retreating, before recovering again. It spent most of this year floating in the sub-$500 range — a far cry from its $705 high it hit in September 2012.

However, with its closing high of $556.07 on Friday, the stock is now in positive territory and many analysts see an upwards swing for the remainder of 2013 and into 2014. Many analysts expect the stock to reach $600 in the next several months, while some maintain a $777 target in the next 12 months.

Source: TUAW.

AAPL goes into the Black for 2013 on Black Friday as it hits $550.


We mentioned a couple of days ago that AAPL stock was approaching a high for the year, and it has now broken the $549.02 at which it began the year.

The company has experienced a roller-coaster ride in its stock price, almost entirely divorced from any product-based reality. The value placed on the company by the market at any given time has more to do with the gap between rumors and product launches, and of course short-term speculation …

Its climb in the latter half of the year was given a boost by a vote of confidence by billionaire investor Carl Icahn, who tweeted in August that he considered AAPL “extremely undervalued” and that he’d taken a “large position” in the stock – which later reachedaround $2.5B.

Tim Cook last month told Apple employees that the company had never been stronger.

We’ve just posted financial results for fiscal Q4, including record-setting iPhone sales. I am happy to report that Apple’s business has never been stronger, and we are heading into the holidays within amazing lineup led by the new iPhone 5s, iPhone 5c, the stunning iPad Air and iPad mini with Retina display. You and your teams work incredibly hard to deliver the very best products in the world, and our customers simply love them. I’m extremely proud of the collaboration going on across the company and everything we’ve accomplished as result of this great team effort.

The company broke $500 following a record 9M iPhone sales in the opening weekend, and high-end guidance for the following quarter.

Apple remains the most valuable company in the world, with a market cap of close to half a trillion dollars ($490B).

Source: 9to5Mac.

Will Apple Split Stock At Tomorrow’s Shareholder’s Meeting?


Rumors are swirling that Apple, a company which has been having a rocky time on Wall Street lately despite reporting their most profitable quarter ever, might announce a decision to issue a stock split tomorrow at their next shareholder meeting, to be held tomorrow.

The source of the rumor appears to be a tweet from investor and analyst Douglass Kass, who says that :

High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow’s shareholder meeting.

A stock split is when Apple decides to increase the number of shares in circulation by issuingexisting shares of outstanding stock to current shareholders. In a 2:1 stock split, for example, every share of AAPL an investor had would become two, each worth exactly half what a single share was worth previously.

Why would Apple split its stock? Traditionally, stock is split when it is becomes significantly more expensive than the stock of competing companies, but it’s unclear if that’s what is happening here. Apple stock, in fact, seems completely undervalued compared to Google, which is currently trading at $793.20 a share.

As Investopedia explains, “The bottom line is a stock split is used primarily by companies that have seen their share prices increase substantially.” But that’s not what has happened here. AAPL stock is, in fact, down almost 40% in the last six months. So what’s really going on?

Over at Seeking Alpha, one commenter speculates:

Everyone knows that stock splits add zero to the basic financials of a company. However, a reasonable stock split can have a very positive psychological impact on the value of a companies stock – especially a significantly under-valued stock like where Apple stock is at present, IMO.

In other words, if this rumor is true, it’s a measure only meant to raise market confidence in Apple… and it would appear to indicate that Apple’s higher ups are, despite assurances to the contrary, very worried about how Apple is performing on the Street.

Source:Cult of Mac.

Reduced iPhone 5 Parts Orders Rumors Send Apple Shares Briefly Below $500.

Reports claiming Apple has reduced iPhone 5 parts orders in the face of weaker than expected demand caused Apple stock to briefly drop below $500 Monday morning, as traders reacted to the news.

Seen above – The price of Apple stock at the time of this article.


AAPL shares were down nearly 4 percent before the market opened, a hit that came after both The Wall Street Journal and Nikkei issued reports claiming that Apple had slashed iPhone 5 component orders due to weak demand. The company is said to have cut “roughly half” of its orders for the 4-inch display on its latest smartphone, and also initiated a drawdown on other components in the current quarter, which concludes in March.

This comes just over a week before Apple is set to announce their earnings for the December quarter. Sales of Apple products are expected to be record setting. Analyst have had high expectations for the iPhone in particular, with some expecting sales of 50 million.

Apple’s stock has fell nearly 17% over the last three months, with word that investors are concerned about Apple’s gross margins in 2013, with additional concerns voiced about the company’s growth potential.

The company’s high point came in the middle of September, as its stock briefly hit more than $700 per share.

Source: MacTrast.