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Helped by robust sales projections of iPdad 3, the stock of Apple (NASDAQ: AAPL) crossed the $550 mark this morning, reaching a new all-times highs of $551.86 —well above its 200, 100, and 50-day moving averages, gaining roughly 58 percent for the last 12 months compared to an almost 5 percent gain for Google (GOOG), and a 10 percent gain for the overall Nasdaq100 (NASDAQ:QQQ).
Apple’s stock has also benefited by the last profit report that exceeded analysts’ estimates by a wide margin, easing of concerns over leadership transition after the loss of its legendary founder Steve Jobs. In the meantime, both Apple and Google have been gaining market shares against Research in Motion (NASDAQ:RIMM) and Nokia(NYSE:NOK)—Apple has been particularly strong in Asia, where it maintains the unquestionable leadership against its peers.
Even after this run up, Apple trades at a Forward PE (fye Sep 24, 2013) of 11.54. This means that the stock is still inexpensive compared to Google and the Nasdaq100. Apple is firing on all cylinders, with its Mac products gaining in popularity among corporate users, and its iPhone 4S gaining popularity in Asia, where Apple has a huge room to grow.
As we did write in a previous piece, Apple’s stock rapid ascend has fueled a wave of robust forecasts that call for Apple to reach $600, $800, even $1000 that hype investor expectations feeding into a speculative frenzy that parallels similar predictions for Cisco Systems (NASDAQ:CSCO), and Hewlett-Packard (NYSE:HPQ) back in the late 2000. We all know how that frenzy ended. This may not the case here, however, as Apple has so far avoided the strategic mistakes of Cisco and HP.
Long on AAPL
Also read Will iPad 3 Boost Apple’s Momentum?
