Shares of Apple
Inc.(NASDAQ:AAPL) are outperforming on Thursday and soared $6.71 or 1.10%
to $612.96 as investors are betting on the company’s upcoming third quarterly
earnings next week.
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One should note that the stock is approaching towards its near
term resistance of $618, which was its peak after the company reported its
second quarter earnings in April, 2012. In the past three months, the stock has
created a bullish chart pattern with higher tops and higher bottoms. The stock is
trading well above its 50-Day Moving Average and 200-Day Moving Average of
$585.17 and $548.14 respectively.
However, apart from technical point of view, investors
should continue to focus on earnings, which are scheduled to be announced on Jul
23, 2012. Analysts are estimating the company to earn as much as $10.38 a
share, up sharply from a year ago profit of $7.79 a share. Revenue is estimates
to grow by 30.70% year over year to $37.34 billion.
RUMORS
Apple has always been under rumor radar with latest rumor
circulating that the company has been working on iPad mini and may release it by
October. The report also suggests that AAPL was in talks to develop a smaller
iPad, since the introduction of the first generation even with Steve Jobs
saying that a screen that small wasn’t ideal for users to enjoy their media.
Analyst at Pacific Crest Securities said the new launch "is going to be
huge,"
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Also, there are several rumors about the company’s upcoming
iPhone5, where online bloggers are forecasting additional features and images.
Well, in the past the company has beaten analysts’ estimates
in past three quarter out of four quarters. However, this time analysts believe
that expectations are too high and Apple may not meet the Wall Street’s target.
Well, what if the company reports lower than estimated earnings? The stock
will fall…but this is not going to be the end for Apple as the company has several
products to release later this year. So if the stock falls anytime, it could be
a buying opportunity.
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