Apple: Almost squeezed out of juice?
The evening prior, Apple revealed their earnings per share of just $12.50 that was a meagre amount Wall Street was foreseeing. The sell off however in the past few weeks of ups and downs had eventually paid off with shares turning up to be positively above in just several hours of trading. The explosive rally by the Apple Company staggered from a $350.00 worth of shares last November, went up the wall to nearly and well over $600.00 of shares during the start of the month which resulted in many investing trades running berserk whether the said stock is now worth taking a chance. The ability of the shares to fluidly follow through and hold its ground at above $600 should give pretty much a foresight that Apple is steadily regaining their bearing once more with much lessons learned. Now that Apple is currently producing an average of 4.3% of the US S&P index with outcomes having substantial and promising influence on traders outlook from a global perspective this news is definitely one of the good ones to hear in such a long time.
Technical and fundamental pointers have been currently giving rather contradictory indications about the real foothold of the company from November 25th to April 9th with shares gaining the upper hand of approximately 75%. In other words these developments suggest that Apple is most likely vulnerable in a bubble. However, the said fundamental indicators propose that stocks could still have a room to stay for a little while long.
The following indicators are listed: First is Apple’s stand in the NASDAQ 100 which jumped from 15% to 19% in the past months but still remains below the 20% level. The current promising developments surrounding its successive gains could hopefully rise up to 25% and more in the coming months. Secondly, Apple’s current P/R ratio has advanced up to 18 but still considered relatively low in comparison to the last 10 years. Finally, companies with tremendous growth expansion support an even higher P/E ratio such that 1 being the accepted average ratio and Apple’s current 0.3 ratios implicate sizable increase later on.
With the explosive rally in stock comes with high expectations for the company’s products and steady financial outcomes. Apple’s ingenuity and adaptability in exploring several markets and especially taking the risk investing in new ones particularly enabled the company to successfully create new products which hopefully can determine whether or not shares can keep up to maintain investor support in the future.