Wall street bias towards Apple/Jobs?

Can you tell me what is curently keeping Apple stock down. Don’t tell me $ 600 price tag on iPhone (first, its not primarily a phone; second, they have plenty of room to drastically lower the cost). I reckon its because Gates, like Wall Street is purely into the money — Gates is their kind of guy. Jobs, always about quality and innovation rather than throw it out there and fix it later, is not. Wall street does not like seeing a Steve Jobs succeed as long as their is a gates in the market? I am not trying to stir up apple/microsft debates. I bought apple stock at 13.75, so I’m purely into the money. I just want to know why wall street is preventing me from getting richer. Watching this stock has led me to conclude the above. Agree? disagree? Anyone notice any similar wall street bias’ with additional companies?

Answer by sm bn
it is just a matter of time

I remember when everybody is dumping Apple stock about 12 years ago!

Answer by Confused_Cowboy
Public have been asking this question about Apple Computers Inc. for over 30 years.
One answer is that they are a niche company, and always will be. Their P/E ratio is where it should be, and the price to sales ratio is apt, agreed their market position and growth possibilities.

Answer by zander1331
I was wondering why it hasn’t gone up much any today. I bought some 13 months ago at $ 83 and its the same price now. Of course Microsoft would be against Apple, but not enough public are charitable the company credit. When ever something new comes out, the stock jumps up, but then it levels out some.

Answer by muncie birder
Wall Street is not preventing you from getting richer. Public who buy and sell Apple are. Personally, I would not touch the stock. The company is a technology company and technology companies have a very terrible habit of crapping out. At one time there was DEC. At another time Novel. At another Compaq. All history, but once all the darlings of Wall Street.

I certainly must give Jobs credit. He is one savy inovator.

Answer by SmittyJ
Your Apple/Microsoft analysis is pretty contradictory…on the one hand you say Wall Street is purely into the money but yet you are implying there is some hidden agenda against Jobs….the only agenda Wall Street has is to make money….if the majority of the market players thought that Apple was undervalued there would be more buyers than sellers and therefore it would go up…since its going down right now, more feel that it is overvalued. Wall Street may maybe care less about Gates and Jobs. And there’s excellent reason why the stock has come down after the jubilation of the iPhone has died down. Apple’s revenues from Mac sales late last year and their overall guidance for the first part of 2007 were well below analyst expectations. In addition, because the iPhone won’t be available until June, analysts are concerned that many prospective iPod buyers will place off their hold until June coming up for the iPhone which would hurt iPod sales numbers in the first half of the year. There’s also the huge question of exactly how much the iPhone will contribute to overall revenues since they are admittedly going after a very small segment of the cell phone market…then there’s the question of how many competitive harvest with similar features and design will be rolled out between now and June by additional cell phone makers (there really isn’t much in the iPhone that isn’t currently available or will be available from others in the near future at a much lower price)….then you have the question of how much iPhone sales will cannibalize iPod sales……So basically there’s a lot of uncertainly with Apple right now which tends to push share prices down….maybe it’s a buying opportunity but it may also be time to take a small off the table and lock in some profit.

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Ok, so as I am learning more and more about options I realize they are very confusing, but can be much more rewarding than stocks. I’m trading options with paper money to learn the ropes but need some help.

If I call AAPL (Apple Inc.) at a strike price of $ 90.00, and the option costs $ 2.34 and expires in Febuary 2009, and say before it expires AAPL goes to $ 100, how much profit will I have made?
I would be buying 1 option, which would cost me $ 232.
not $ 232, $ 234! sorry.

Answer by zman492
If AAPL is at $ 100 at expiration your profit will be

($ 100-$ 90) – $ 2.34, or $ 7.66 per share or

$ 7.66 x 100 = $ 766.00 per contract.

If AAPL is at $ 100 former to expiration your profit will be at least $ 7.66 per share ($ 766.00 per contract) but the exact profit cannot be determined without knowing the implied volatility and the number of days until expiration at the time.

(I excluded commissions, fees and bid-question price slippage from my calculations, so your exact profit would probably be a small lower. I also ignored the comment that “I would be buying 1 option, which would cost me $ 232.” since if the option costs $ 2.34 you would pay at least $ 234.00 for one contract.)

Answer by JohnGalt
zman got it right.

Just to be apparent, if AAPL is at $ 100 former to expiration, call option will LIKELY be priced at above $ 10, depending on volatility, days to expiration, and additional factors. Your profit may maybe be higher than he shows (less commish & slippage)

Answer by Radar Man
Options, I like options. Please check my blog for some real life trade examples.

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