The air is crisper. The leaves are changing colors. Costume ideas are being debated.
Yes, earning season is definitely underway. These next few weeks, the largest companies in the country will be reporting how much profit they sowed or how much money they lost in the preceding quarter. Very exciting times.
Fruit From the Tree of GOOD
As in GOOD golly!!! Did you see the numbers Apple, Inc. released last Monday after the close of the stock market? Analysts and their forecasts for the company’s expected profits were beaten handily. They basically had a quarter so good that they set personal records:
- In the middle of a recession with double-digit unemployment rates.
- With consumers spending less on discretionary items.
- With people actually saving more.
Of course, the company’s stock price shot up ten dollars a piece overnight.
Is It Ripe?
Even though the price of the stock went up so much, the numbers just made me want to own AAPL even more. It is a definitely a value stock since it has over 35 BILLION in current assets and NO DEBT. If they did not make a single cent of profit for a few years, I think they can still survive just because of the massive hoards of cash they are sitting on.
Even Kids Are Getting Their Servings
I feel like everyone in my age group except for me has an iPhone. Those touch screen interfaces are everywhere and I must admit that I do get jealous of all the apps you can download for it (all 85,000 of them). But I do make up for it by having a laptop and a desktop at home that both have the fruit brand. Apple’s market share for personal computers is approaching ten percent and in most dorms across the nation’s universities, I would guess that the percentage is definitely more. Apple is hip and trendy just like turtlenecks, I guess. So maybe AAPL is a glamor stock too.
Some experts are even predicting another 10 percent rise in the share price as the target. Talk about growth.
Will It Keep Producing?
Another amazing aspect about the record quarter that the company had was the fact that it was accomplished before the holiday shopping season, which begs the question: How awesome will the profits be in the current quarter? People were already buying computers and iPhones in such a frenzy that the company had a hard time making enough.
With a holiday quarter coming up, is it too optimistic to expect another good earnings report in three months? And does that mean another jump in stock price like we saw Monday? It might be a good time to buy now before the stock becomes even more expensive.
Besides, there are rumors out there about a new Apple product that could really be something huge. So huge it will drive everyone (including investors) bananas.
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