Goldman Sachs ups Apple price target to $720, expects exciting software at WWDC

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  • Reply 21 of 31
    paul94544paul94544 Posts: 1,027member

    no won't call you and idiot I will just take your money!  lol if you are sooooo sure it will be $800 by year end - really - just opinion , you don't back up you statement with any reasoned discussion, would you like to back that up with hard cash. how about a buying a $800 call option to put your opinion on the line?

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  • Reply 22 of 31
    quinneyquinney Posts: 2,528member
    How does publicly available information -- which this is -- lead to 'stock manipulation'? Inquiring minds want to know.

    If it wasn't public, it wouldn't have much effect. What I am wondering is, if they publish a very bullish report on a stock, does that not influence the stock to rise? If many other big investment houses do the same, doesn't that magnify the effect? Wonder if anyone has done serious study of this.

    Yes indeed. I have seen an investment newsletter writer (Louis Navellier) who includes analyst upgrades/downgrades as a parameter in his stock timeliness algorithm.
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  • Reply 23 of 31
    anantksundaramanantksundaram Posts: 20,419member
    How does publicly available information -- which this is -- lead to 'stock manipulation'? Inquiring minds want to know.

    If it wasn't public, it wouldn't have much effect. What I am wondering is, if they publish a very bullish report on a stock, does that not influence the stock to rise? If many other big investment houses do the same, doesn't that magnify the effect? Wonder if anyone has done serious study of this.

    There is a massive amount of good academic research on the stock price impacts of analyst forecasts. See for example, this: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=271713

    The short answer is, analysts can have a fairly significant impact on stock prices in the short run.
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  • Reply 24 of 31
    drblankdrblank Posts: 3,386member
    There is a massive amount of good academic research on the stock price impacts of analyst forecasts. See for example, this: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=271713

    The short answer is, analysts can have a fairly significant impact on stock prices in the short run.

    And? So what? What else is new?
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  • Reply 25 of 31
    anantksundaramanantksundaram Posts: 20,419member
    drblank wrote: »
    And? So what? What else is new?

    So.... nothing?

    I was just answering a goddamn question. Chill, man. Calm down.
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  • Reply 26 of 31
    hmmhmm Posts: 3,405member
    Quote:

    Originally Posted by TeaEarleGreyHot View Post

     

    It's all about VILLAIN.

     

    Right?  ;)


     

    That makes me laugh every time. The best was still matching the stock chart to the outline of a mountain range.

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  • Reply 27 of 31
    froodfrood Posts: 771member
    Quote:

    Originally Posted by Robin Huber View Post





    If it wasn't public, it wouldn't have much effect. What I am wondering is, if they publish a very bullish report on a stock, does that not influence the stock to rise? If many other big investment houses do the same, doesn't that magnify the effect? Wonder if anyone has done serious study of this.

     

    They could if their report is influential enough that it leads people to buy, but it would be exceptionally difficult to prove anything.  That is triply true for Apple, whose modus operandi is to keep everyone guessing.

     

    A stocks valuation is the net present value of all future expected earnings.

     

    Two key words there are 'future' and 'expected'  Their job is literally to predict the future.

     

    To do that they start with the past and present.  When they look at Apple's past earnings and current trends they come up with a relatively easily determined valuation.  Take all their current products trends, sales, margins, cash,  plot em out, do the math....  And you come up with Apple's valuation based on current streams.  Lets say that value comes out to $500 billion dollars.  The trick is that that is not an accurate reflection of Apples value.  They have plans for the future.  Those are secret, so lets call them '???'

     

    So Apple's correct valuation would then be:

    Value = $500b + ???

     

    So, how much do *you* think ??? is worth?  At its rise in 2012, speculation on how big ??? could be drove the stock price to very high levels.  When the actual value of ??? turned out to be far less, the price dropped.  Since then the value of ??? has diminished considerably as Apple hasn't delivered new blockbuster products 'lately.'   That is almost a ridiculous thing to say as they have generated new revenue streams that most companies would drool over.  App store generating $1 billion in revenue ??!!!  Most companies would soar over that.  To Apple it barely even registers because it is only 1/170th of their revenues.  For anything to move Apple's share price it has to be *huge* (or any shift one way or the other in iPhone sales, as that is what generates most of that $170 billion a year).

     

    Apple did have positive numbers Q2 which caused a legitimate jump in share price.  But the current takeoff in price is beyond being based on that, it is primarily based on the belief that ??? will be much bigger than expected.  It is *NOT* being driven by analysts in my opinion, but rather by fans.  And now that they have started the process, the ride gets scary.  Because the stock price is going up, analysts are now upping their estimates...   not based on current financials, not based on accurate knowledge of what those future products in ???, but simply because the price is going up because fans are buying shares (note the relatively cool reception of institutional investors, who have largely stayed away).  So fans drive the price up, because of that analysts drive up their targets to match, but that just convinces enthusiasts they are 'right' and they buy more and the price goes higher until things get out of hand.  If the institutionals decide to lay in then things really get crazy.  At some point Apple's ??? may or may not get released.  By the time it is released that other keyword besides 'future'.... "expectations" are so high that even staggering amounts of sales will fall short.

     

    At that point if the institutional funds are in (they can range from 30% to 50% ownership of Apple), they pull out- fast and in large quantities.  The stock absolutely tanks despite 'record sales'  (remember that their current valuation was based on record sales + ???).  The small guys who were so exuberant on the ride up are left holding the bag.  Many of them panic and sell off as well.  Nobody trusts the stock again for a long long time.  Then, two years later....   It all happens again.

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  • Reply 28 of 31
    hametahameta Posts: 79member
    [B][I][SIZE=5][COLOR=blue]They're Playing The Game of Targetting AAPL, For Sure ![/COLOR][/SIZE][/I][/B]

    [B][I][SIZE=5][COLOR=#f09]Plural Analysts Already Targetted AAPL to $1000 in 2012 Before It Hit All Time High of $705 on September 21.[/COLOR][/SIZE][/I][/B]

    [B][COLOR=#09c][I][SIZE=5]So Is It A " Vicious Deja Vu " ?[/SIZE][/I][/COLOR][/B]
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  • Reply 29 of 31
    tallest skiltallest skil Posts: 43,388member
    Originally Posted by NOFEER View Post

    How about this software upgrade

    FIX IPHOTO AND ITUNES

    so they are FULLY FUNCTIONAL

    on an external hard drive connected to a router

    Say maybe their airport AC ???

    It's a mess and needs to be FIXED

    the way it is now they ARE NOT

    And chews up massive chunk of my late 2013 MBP RET

     

    So report your problems to Apple.

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  • Reply 30 of 31
    zoetmb wrote: »
    slurpy wrote: »
    This shit is hilarious. Not gonna complain about increasing price targets, but these are the same banks that kept severely Downgrading the stock the whole year to ridiculous levels. What's changed? Everyone knew that there would be a wwdc around this time, and Apple has announced nothing. On what fucking basis, in terms of fundamentals, were these banks downgrading, and now upgrading the stock, with such an extreme range? Fucking clowns.
    Exactly.    The best of the clowns projected $635 and now the stock hit $635 and most of the 2014 product line hasn't even hit yet and so these absurdly overpaid genius are now saying, "oh yeah...we project it's going to go higher."    Duh.   What unmistakable brilliance.    A lot of these clowns had Apple practically out of business by now - "There's no innovation anymore, Android is getting all the market share, the phone market is saturated, no one is buying computers, the iPad has too much cheaper competition...wah, wah, wah."  

    Hmmm...it's raining outside today.  I project that we're going to see a lot of umbrellas and windshield wipers moving.   Oh yeah....and the ground is going to be wet.   Can I now get paid what these fools get paid?

    I guess my problem is that when I don't know something, I don't have the guts to claim that I do and when something is incredibly obvious to me, I assume it's obvious to everyone else as well and my opinion on the matter is of no interest to anyone else.   I guess the way you make the big money in this world is to act like a fool.  

    Steady on; that's almost too much truth in one post for me to take in.
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