Apple closes at new high of $648 on rumors of iPad mini, Apple TV

Posted:
in AAPL Investors edited January 2014
Apple stock surged upward before reaching an all time closing high of $648, boosted by continued rumors of both a smaller iPad and a new Apple TV capable of presenting live broadcasts.

Apple's stock rapidly escalated early in the year after the company announced the results of a blowout winter quarter with the launch of iPhone 4S. After April however, the stock headed downward, reaching a trough of $530.

The stock has only inched up slightly since, gaining ground after the company's most recent quarterly earnings were announced, but never regaining the momentum seen earlier in the year.



Yesterday, the company distributed $2.5 billion in cash to its shareholders as its first dividend payment since the late 1990s, but rather than seeing its market capitalization drop by the same amount, the company's stock valuation gained over $11 billion today, reaching $607.54 billion.

While it's impossible to accurately explain the often seemingly irrational movements in stock prices, the company seemed to benefit from rumors surrounding an expected iPad mini and new forays into living room entertainment with an enhanced Apple TV offering support for live broadcasts.

Both products could extend Apple's lead in the tablet and Internet set top box markets, both of which have very distant second place competitors.
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Comments

  • Reply 1 of 43
    tallest skiltallest skil Posts: 43,399member


    Uh, they're sure that their completely idiotic and unfounded rumors are the reason for this?


     


    Does anyone really think that Apple would make ANY money by just joining up with the TV guys for a box like everyone else puts out?


     


    I imagine it's the dividend doing this.

  • Reply 2 of 43


    Time for some stock split news!

  • Reply 3 of 43
    seankillseankill Posts: 467member


    I personally want to see apple enter the TV market just to see if they could pull it off. But the TV market looks to be a tough one, although i'm sure the iphone faced similar troubles.


     


    Apple stock should go up because it looks like they will convert a long time PC user (me) to Mac. Though, I am a little worried about getting something new.


     


    If the iPhone 5 turns out to be a good upgrade over the 4(S) then it will probably sell like hotcakes. I got my mother ready to buy one and my GF. If it is a good looking, nice phone, I'll be buying one as well. Assuming I can afford one after buying a Macbook lol

  • Reply 4 of 43
    aaarrrggghaaarrrgggh Posts: 1,577member
    The dividend is nice. Not much in percentage terms, but it let's me justify holding a little more even if I don't see huge long-term growth.
  • Reply 5 of 43


    Now that aapl is paying dividends there are a whole now set of stock portfolios that will be owning a piece.

  • Reply 6 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Seankill View Post


    If the 6th iPhone turns out to be a good upgrade over the 4(S) then it will probably sell like hotcakes.



     


    Even if it doesn't it'll sell like hotcakes. Every iPhone, even the one that "is the same phone they sold last year" sold more than every previous model combined. Leads me to believe that maybe they're all good upgrades. image

  • Reply 7 of 43
    don108don108 Posts: 79member


    In the book Supermoney by "Adam Smith," he writes that all you can say about a stock is that when it's going up it's going up, and when it's going down it's going down. Stocks have little to do with logic or reason. Those are things financial pundits come up with to protect their jobs.

  • Reply 8 of 43
    normmnormm Posts: 567member
    aaarrrgggh wrote: »
    The dividend is nice. Not much in percentage terms, but it let's me justify holding a little more even if I don't see huge long-term growth.

    As long as Apple keeps doubling their profits every year, as they have been, it will be hard for the stock price to not go up. AAPL is up 7x since the start of 2009 and the PE is about the same.
  • Reply 9 of 43
    seankillseankill Posts: 467member

    Quote:

    Originally Posted by Tallest Skil View Post


     


    Even if it doesn't it'll sell like hotcakes. Every iPhone, even the one that "is the same phone they sold last year" sold more than every previous model combined. Leads me to believe that maybe they're all good upgrades. image



    True, you have me there, but to me, the iPhone 4 was the biggest upgrade. I expect this one to be about the same jump. Mainly pulling for a 1.6+ ghz dual core and 1gb RAM is a given with that 4 inch screen. LTE doesn't matter to me, mainly due to battery life, I hope iOS has the option to turn that off. I want the phone to have LTE, but I'd only use it sometimes. So a bump in battery is expected too.


     


    Plus a refined, sexy if you will, design; not sure i care much for siri or the other new features besides the maps.

  • Reply 10 of 43


    Well technically the stock should fall after a dividend (company is paying out some of its value), but whatever, up is up! Cheers!

     

  • Reply 11 of 43


    If  you got in at $90 a share then it is 12% and it should be growing at a pace close to profit growth.  image


     


    If Apple announces an increase to dividend equal to 30% then we would see a dividend of $13.85 next year.  30% would be a slowing of growth due to no new products being introduced. Given Apples current plans, I suspect that is a low side estimate. 

  • Reply 12 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Seankill View Post

    …a 1.6+ ghz… 


    Oh, that won't be happening by any stretch.

  • Reply 13 of 43

    Quote:

    Originally Posted by ClementineOrange View Post


    Now that aapl is paying dividends there are a whole now set of stock portfolios that will be owning a piece.



    They did that when the dividend policy was announced a few months ago. In other words, that probably had little to do with the move today.

  • Reply 14 of 43

    Quote:

    Originally Posted by Don108 View Post


    In the book Supermoney by "Adam Smith," he writes that all you can say about a stock is that when it's going up it's going up, and when it's going down it's going down. Stocks have little to do with logic or reason. Those are things financial pundits come up with to protect their jobs.



    You really should inform yourself a bit more about what creates wealth. Maybe even go back and start with the original Mr. Smith, not believe some dilettante whose work populates airport bookstores. 


     


    That said, there's no law against staying ignorant.

  • Reply 15 of 43

    Quote:

    Originally Posted by Chris Chackal View Post


    Time for some stock split news!



    Why do you think it will matter?

  • Reply 16 of 43
    slurpyslurpy Posts: 5,142member


    But, but, all the trolls insisted that Apple had already seen its 'best days', that the stock drop in the past few months was evidence that the 'bubble' had 'burst', and that its all downhill from here. 

  • Reply 17 of 43
    pendergastpendergast Posts: 1,358member
    seankill wrote: »
    True, you have me there, but to me, the iPhone 4 was the biggest upgrade. I expect this one to be about the same jump. Mainly pulling for a 1.6+ ghz dual core and 1gb RAM is a given with that 4 inch screen. LTE doesn't matter to me, mainly due to battery life, I hope iOS has the option to turn that off. I want the phone to have LTE, but I'd only use it sometimes. So a bump in battery is expected too.

    Plus a refined, sexy if you will, design; not sure i care much for siri or the other new features besides the maps.

    Processor power is not that important, and at worst is meaningless (see Galaxy Note 2).

    No iOS release has ever felt slow.
  • Reply 18 of 43
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Pendergast View Post

    No iOS release has ever felt slow.


     


    To clarify, you mean no iOS release on the device with which it is released, right? I'm certain there are some 3G owners who would rebut you about iOS 4 and some 3GS owners who will be mystified at the purpose of iOS 6 on their device.

  • Reply 19 of 43
    quinneyquinney Posts: 2,525member

    Quote:

    Originally Posted by Chris Chackal View Post


    Time for some stock split news!



    Here you go:


    AAPL is going to split its stock 655 to 1 and then sell shares for $.99 on the iTunes store.

  • Reply 20 of 43
    rogifanrogifan Posts: 10,669member
    What was the highest market cap Microsoft and Cisco ever had? I believe at the end of '99 Microsoft was near $600B.
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