Apple’s Shares Higher Than Ever W/iPhone Success
07.06.07 - 10:13am
Everyone loves the iPhone and investors are loving it too as Apple shares reached an all time high yesterday riding the iPhone wave.
The shares climbed to as high as 4.4 percent to $132.75 in after hours trading yesterday as numerous reports sporting good news about the iPhone have continued.
First there was the nice profit that Apple is making on the phone - over a 55 percent margin. Then there was the simple fact that Apple sold almost three quarters of a million iPhones in the first weekend. Talks of deals closing in Europe was also welcome news. Apple restocking their warehouses showed that they could handle the demand, and to top it all off everyone loves the phone. There are minor glitches here and there but simply put it is the hottest item on the market today! Bigger even than the iPod.
Investors therefore are extremely happy as the initial fears that Apple’s stock would drop after the iPhone’s release have been unfounded. “The stock is obviously anticipating very very strong sales for the iPhone and very good follow-through sales,” said Andy Hargreaves of Pacific Crest Securities. “The stock isn’t going to be a one-month wonder.”
“I think the reason why Apple is probably getting stronger is because the initial reaction from the users has been very positive,” said Chowdhry, who holds an “Overweight” rating and $150 price target for the stock.
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