Tuesday, December 22, 2009, 4:48PM ET - U.S. Markets Closed.

Wall Street Hopes Apple Doesn't Fall Far from the Tree

Posted Oct 19, 2009 09:13am EDT by Kara Swisher in Electronics, Internet, Information Technology, Recession

From All Things Digital, Oct. 19, 2009:

When Apple reports its fourth-quarter earnings today, investors are hoping–actually, expecting–that the iconic computer company will look a lot now as it always has.

In other words, don’t go changing and it will please us.

Wall Street is anticipating, as it has throughout the econalypse, another estimate-beating performance from Apple.

While Apple has signaled it would be making up to $1.23 a share for the quarter, the “whisper” number for the quarter is much higher.

Revenue is also expected to rise strongly to upwards of $9 billion.

The reason for all this happy talk? Strong sales of all of Apple’s innovative hardware products, including iPods, iPhones, computers, as well as big, fat profit margins that come with the upgrades this past quarter by consumers to its new Snow Leopard operating system software.

And, of course, the stock has been showing all this investor love by–as BoomTown has noted recently–defying gravity.

Apple shares are up just above 120 percent since the beginning of the year.

It closed at $188.05 on Friday, giving it a market valuation of $168.5 billion.

Whether it will continue going up is a big question of investors, although Apple is entering the holiday season, which is one in which it typically does well.

Plus, many are expecting the company to goose excitement for 2010 with the announcement of its secret-but-everyone-knows tablet offering.

That said, Microsoft also officially is launching a new operating system out this week–Windows 7–which is expected to give Apple some clear competition.

More coverage from All Things Digital:

 

56 Comments

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 09:20AM EDT

Hopefully the suspense will last until the closing bell.

Ryan J
Ryan J - Monday October 19, 2009 09:34AM EDT

People are buying iphones and not paying their other bills. That's why the stock has held up well. People can't live without their cellphones and internet.

Elizabeth & Don
Elizabeth & Don - Monday October 19, 2009 09:36AM EDT

And where does the Trillion dollar war ...designed to boost our number one export...weapons, play into this debt scenario?

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 09:45AM EDT

If Apple has done so well during the worst of the crisis, it shouldn't weaken now that prospects are slowly getting better... There is still a lot of potential in iPhone sales in China and other big markets.. The iPhone is more than a product, its a phenomenon even bigger as the iPod. It will continue to grow as long as there is no alternative and there is none on the horizon. The rest of the market is too fragmented and Apple holds a huge share of the Smartphone market with just ONE model (in different versions) whereas the competition is putting out new models all the time fracturing their share even more. If Apple can leverage the iPhone success across other platforms, its going to be the next Microsoft -like monoploist..

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 09:49AM EDT

Buy stocks in companies whose products you believe in and hold them. That's what I told people when Apple was at $16 a share. A company with vision that innovates and cares about what it builds. Take that Balmer and Dell.

Tex
Tex - Monday October 19, 2009 09:50AM EDT

At the current price of APPL, I would reduce/hold.

chubby
chubby - Monday October 19, 2009 09:56AM EDT

Buying puts for insurance...

albert
albert - Monday October 19, 2009 10:04AM EDT

BUY APPLE WHEN IT DIPS. BY XMAS, WE WILL BE VERY GLAD

Paul
Paul - Monday October 19, 2009 10:19AM EDT

Ryan J is right, these tech companies aren't a guage of the real economy, people would rather have their crackberry and iphones rather than food.

Terry
Terry - Monday October 19, 2009 10:19AM EDT

Actually it's ridiculous that the market is basing their outlook of the whole economy on a handful of successful equities because the rest of the US is drowning. Let's get these Congress incumbent replaced to enable a fairer business environment. No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010.

LegalizeMe
LegalizeMe - Monday October 19, 2009 10:24AM EDT

Apple's iPhone is going to find some serious competition once the open source Android phones start flooding the market. Google vs. Apple Round One coming up!

StevenW
StevenW - Monday October 19, 2009 10:26AM EDT

I've got my apple.....but I'm living in this cardboard box.......Call me...I'm board as hell.......................................................... (www.usdebtclock.org)...131 Trillion dollars of debt divided by 153 million people who actually work and pay taxes...equals....$855,000.00 dollars that each of us owe on the governmnets debt. The Trillion dollar war is a drop in the bucket.

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 10:27AM EDT

It is fun to watch the little worker drones feverishly scurry around in their little foreign sedans while yapping on an overpriced cell phone. They will feed their kids potato chips for breakfast but must have a cell phone worthy of jet setting CEO. Yeah, that's something to build a recovery on, right, sure, whatever.

Gene
Gene - Monday October 19, 2009 10:31AM EDT

Hopw does one comp- hold up the whole market? The market is going to CRASH.It's got to the market can't hold without JOBS.In THIS COUNTRY

Rey
Rey - Monday October 19, 2009 10:45AM EDT

Get this guy Popoy out of here / he does not know how to spell and he makes no sense to his comments // he is an absolute idiot.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday October 19, 2009 10:45AM EDT

"Microsoft also officially is launching a new operating system out this week–Windows 7–which is expected to give Apple some clear competition." Kara....you and Soro need to get together as stand up comedians.

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 10:48AM EDT

Buy apple now, Its going to go up big time. The shorts has been squeeze out. If you notice. ALL THE EARNINGS REPORT HAS BEEN BLOW OUT and the stock price POPS UP. BUYBUYBUY. If it goes up in bad economy how much more if its improving.

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 10:58AM EDT

Apple is the most intrusive and abusive company in IT sector. They control every move their users make, and the rest - as far as I am concerned - makes no difference. I would not buy a pack of cigarettes from that outfit to avoid being bound to their brand of lighter.

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 11:04AM EDT

That's one apple you can't eat.We need JOBS The crash is comeing.

Yahoo! Finance User
Yahoo! Finance User - Monday October 19, 2009 11:13AM EDT

WaMu Robbed by JPM Crooks Breaking News !!!! http://marketoracle.co.uk/Article14326.html

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