Apple Stock Has Plenty of Room to Run
Last week’s announcement opens Apple up to two new tech sectors. In addition to unified computing, Apple is also moving, big time, into wearable tech.
The tech forecasters at IDC say the wearables market will grow at a compounded annual rate of 75% for the next several years. That means it will double roughly every 11 months.
Apple unveiled “HealthKit” as a way to make your smartphone an integral part of the up-and-coming wearable tech revolution. HealthKit is a platform for developers to write new health- and fitness-related apps, but Apple went a step further by announcing its own new app, simply called Health.
The Health app will aggregate data that comes from multiple wearable health and fitness devices into a simplified data stream about your body. Apple says you’ll be able to tell the app to automatically contact your doctor or other healthcare provider if necessary.
Meanwhile, Reuters is reporting that Apple will enter the wearable market itself this fall with the much-anticipated iWatch.
Reuters says Apple expects to sell 3 million to 5 million units a month. Embedded with sophisticated sensors, the iWatch will monitor such key health metrics as blood-sugar levels, calories, and sleep cycles.
Add it all up and you’re talking about a new paradigm in unified personal computing. And I believe Apple is the only firm that’s currently capable of making this dream a reality.
And it comes as Apple has made huge financial gains – resulting in an Apple stock price rally.
In its most recent quarter, Apple said it sold 43.7 million iPhones, 15% more than the Street expected. It also announced $30 billion in new stock buybacks and an 8% increase in its dividend.
Of course, the 7-for-1 Apple stock split took effect June 9. Investor optimism sent the shares up 1.6% to $93.70 on that first day of post-split trading. Since hitting a two-year closing low in April 2013, the stock is up 63%.
In a conversation we had last October, I predicted AAPL would go to $1,000 a share, or $142.85 post-split, in as little as three years.
That would represent a gain of about 52% gain from here.
I haven’t backed off that prediction. In fact, after this conference, I’m even more confident than I was before.