No New iPhone! Has Apple Lost Its Edge?
Apple has become the 800 pound gorilla of technology growth stocks. It’s meteoric rise and redemption from the ash heap in less than a decade is the stuff of legend. And while, the stock has essentially gone no where in 6 months, Wall Street analysts still love the stock. According to FactSet Data, 94% of the 53 analysts who have an opinion on Apple, rate it a “buy” and have a median price target of $450.
As for Apple (NASDAQ:AAPL) customers, to simply say they love the company wouldn’t do justice to their sense of mission and devotion. That said, it’s not just me who felt something was missing from Steve Jobs’ key note at the World Wide Developers Conference. Long-term industry analyst and Yahoo! Finance contributor and colleague Henry Blodget was also left wanting more, especially in the absence of the ”next big thing” product launch. Blodget says the upward trajectory of Apple may have stalled at least for a while.
Another way of putting it could be, with well-established, dominant positions in phones, tablets, music and more, growth rates can only come down and that in essence means that it’s their game to lose.
Add in a developers conference devoid of a major new device launch for the first time in 4 years, as well as ongoing health issues surrounding CEO Steve Jobs and one could arguably make the case against owning Apple here – though few have tried and none have succeeded.
All dynasties eventually end, only on Wall Street, it usually happens a little differently. Once attaining their enormous status, they don’t typically disappear or even lose money. Instead, they tend to take embark on a sideways drift, defined by their past successes and penned-in buy their inability to keep delivering ”the next big thing”. Quarter after quarter after quarter.
See the full “Breakout” segment below:
Related ETFs: PowerShares QQQ (NASDAQ:QQQ), First Trust NASDAQ CEA Smartphone Idx (NASDAQ:FONE), Technology Select Sector SPDR (NYSE:XLK)