The Stock Nerd

In my May 28th post, I wrote about being more aware of your surroundings in daily life. When was the last time you walked into an Apple store if you have one around you? Have you gone frequently enough to notice that it is STILL packed everyday even with this global slowdown? Apple is STILL packed and people are STILL purchasing left and right! Now, that doesn’t mean you should just buy the stock based on that because there are so many more considerations to be made, such as future promise. So, what does Apple hold for us in the future? Is there any competetion that can get in the way? After doing my homework on Apple and picking up a few things from the news, i’m still a firm believer in Apple. Why? Because they do their homework too! Based on the information I could find, Apple still has potential to grab a larger share of the personal computer market and the iPods rally isn’t over yet. The iPod is still being seeked by consumers, and I personally don’t think there will be a “demise of the iPod” headline anytime soon. Apple has clearly shifted their focus to their PCs though, which have been boosting in sales consistently every quarter. In fact, if you go to a major university, you will notice that Apple PCs are becoming more prominent as the computer choice. The fact that Apple has realized that it needs to pay more attention the PC market is very important to me because it shows that Apple has a sense of direction. It’s not going to die out just because its hottest item that made them hot is beginning to “get old.” In fact, just a few moments ago, I ran into an article confirming that Apple will be releasing it’s new MacBooks on Tuesday, October 14th, 2008 (Read more about it here)! As far as competetion for Apple goes, the only major concern I have is that the long anticipated Google Android phone has finally been released. Although the iPhone should still be a preference for basic users who prefer sleekness and ease of use (which the iPhone very much delivers), users who are more sophisticated with their technology might glimpse at the Google Phone twice before making their decision. In fact, i’m still on whether I want an iPhone or a Google Phone. But aside from that, Apple is doing fairly strong and realizes it’s weaknesses that it needs to work on.

So, why did Apple stocks plummet?
If you haven’t noticed, it isn’t specific to Apple at all. Even Google and other giant tech stocks (like RIMM) have lost much of their value. Apple does have a problem in the fact that it currently generates most of it’s revenues from North American and European countries, but I believe this will be the perfect time for them to spread their influence in other parts of the world. With the scary economic outlook ahead, i’m sure we will see slowed consumer spending all around, which includes Apple. The sell off in the market hasn’t helped either. Once we start seeing more confidence in the market (and i’m not sure how long that’s going to take with all the panic lately), I believe Apple will recover easily to at least $180/share. I currently don’t hold any stocks in Apple, but I will most certainly be purchasing in the near future.

Although i’ve been speaking prominently about Apple in this post, the general idea can apply to any company that is still doing very well. Stock prices are extremely low right now and it’s heaven for some investors (and hell for the ones who invested when the stock market was peaked). We may even see the stock market continue to plummet. I’ve read that the Dow Jones Industrial can easily reach 7,000 in the next few months in various reports, but i’m not sure what to believe just yet. That’s all for now.

- The Stock Nerd

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