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Monday, November 5, 2012

Apple Inc. (NASDAQ:AAPL) Showing Its Age Following Massive Success?


Apple Inc.(NASDAQ:AAPL)’s shares increased moderately in Monday’s session after it was declared that the upgraded iPad and iPad mini are met with strong demand, in spite of the catastrophic Hurricane Sandy. Apple’s CEO, Tim Cook said that customers around the globe have appreciated the new iPad mini. The company has set a launch weekend record. iPad minis are almost sold out.

The mini campaign has proved to be welcome relief for Apple shareholders, who have seen the stock fall over $100 since the release of the iPhone 5 in September.

The stock is still up more than 40% in 2012, 210% in two years and over 7,000% over the last ten years. For most of the shareholders of Apple, this recoil is just another dunk to be bought.

For the last 15 years, it has been great for Apple every single day. however, in 220 years of formal US stock trading no stock or company has witnesses profit margins like that of Apple’s without a following misfortune. IBM has increased 1,000% in a span of 5 years ending in July of 1999. It then took 11 years to get back on its feet. Walmart had increased 1,000% in 1990s and disappeared into thin air for the next 10 years. Those are still the best case scenarios. Most shot-up stocks plunge and never show up again.

Apple is the best company in the world although it has started aging. The new products are modified versions of the previous ones. There is a lack of innovative additions to the modern versions of Apple products. The company has spent almost a year looking for a lead for its successful retail stores but it fired him in 10 months. Long-time executives are seen leaving the company and software loopholes are showing up more often.

Apple shareholders are likely to overlook all these and go for the plunge anyway. They may be making the right decision, for the time being.

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