With the next iPhone media event just around the corner, Apple has jumped back to the place it was once standing, stock wise at least. Four months ago, we saw the Cupertino giant hit rock bottom with under $400 but now the company is making a comeback. The iPad maker has again risen to the $500 threshold.
Tech analysts Eric Bleeker and Daniel Sparks have commented about the revival. Apparently famous activist investor Carl Icahn has taken up an important role in the company and shares managed to be kept above the $500 line for two consecutive days. They even scored as much as $504.24. Nevertheless, they continued to fluctuated and finally settled at the more modest value of $498.50.
Apple stock has seen its ups and downs this year, due to the investors’ growing concern related to the fact that no new products have been released recently (like the elusive iWatch). Even Apple’s board of directors has expressed worries about these issues and has even spoken to CEO Tim Cook about it. Even if share value has been stabilized lately, it’s still way down below compared to the all-time high scored last September, when Apple had $700/share,
In the video Daniel Sparks explains that even at $500, the stock is fundamentally quite cheap. He explains that in general the market trades at 18 times earnings, while Apple trades at just about 12/12.5 times earnings. His colleague believes that investors are waiting for the iPhone 5C to be unveiled, before they can brush off their insecurities about Apple.
When this story was posted, Apple's stock was at $507 per share, as shown in the image.