Apples Stock Falling and Rising Yet Again
12.13.06 - 03:57pm
Analyst Josh Bernoff wrote “People who thought that iTunes would save the music business now have to sober up and realize that’s not true,” this being written based on a Forrester Research Report which reported sales dropping 65% in the first six months of the year.
And with this news Apples’ stock fell yesterday $2.08.
Yet today it rises once again and analysts are still raising target prices. Analyst Rebecca Runkle, with Morgan Stanley, raised hers today from $90 to $110, and stocks rose $1.70 in accordance with her report.
The report says that with the new Apple products expected to come out this year, (i.e. the iPhone, new larger video iPod and iTV), and “…less exposure to Microsoft’s Vista OS launch could help reduce seasonal risk to Apple’s shares.”
As far as iTunes is concerned, the lack of sales seems to be equivelant to iPods sold - so therefore many more iPods have been sold, with less iTunes purchased through them. However even though sales are down 65%, iTunes is still selling more iTunes. Piper Jaffray analyst Gene Munster writes that for Jan.-Sept. 2006 Apple sold an average of 18.5 million songs a week through iTunes. Last year they sold only 10.4 million a week for the same time period.
Itunes is expected to spike in January as usual. The spike follows new Christmas iPod owners and iTunes gift card users. Munster says “We expect another uptick in early 2007.”
Speak Your Peace