As We Head Into Weekend, iPhone 2.0 Is All The Focus
It is widely anticipated that Apple’s Steve Jobs will reveal the next version of the iPhone on Monday at the WWDC. With one trading day to go until i-Day, how can investors play the Apple stock? Most people have been viewing the stock as poised to hit $200 for weeks now yet it still hasn’t happened. Let’s take a look at Apple’s stock, the upcoming iPhone, and how we believe the release to affect the stock.
The New iPhone
The reality is that the new iPhone is completely priced into the stock right now. It has been a major driver of the stock’s run over the last few months. Unless Jobs announces some unexpected and remarkable new features for the iPhone, don’t expect a bounce. In fact, anything short of a better version of the iPhone with GPS and 3G, I’d expect the stock to drop significantly.
There have been some rumors over the possibility of video conferencing functionality. If Jobs announces this functionality and demonstrates it at the conference, there is a possibility for the stock to bounce. That could be very exciting and innovative.
Additionally, there are some rumors about Jobs potentially announcing some other new products such as a mini-laptop device. I would be surprised if this happened, but if it does, this could also provide a nice bounce for the stock.
The bottom line is that Apple’s share price is high. Sure, they have fantastic growth and amazing products, but this is all priced into the stock. Could the stock be higher in a few years? Absolutely. However, in the short term I think we are near the top of its trading range. As an Apple believer, I would love for the stock to drop to present a nice buying opportunity because at current prices, I don’t think its the best time to buy.
The Apple Story Continues
Apple is incredible. It’s undeniable. I’m a user of their products and an investor in their stock. I love the long term story here and am always looking for good buying opportunities of the stock. I would urge you to hold out for a better opportunity if you are looking to build an Apple position. Either way, you have to admit that Steve Jobs and the other Apple folks do a great job of gaining our attention. Enjoy the ride.