Apple Inc. Stock Your Choice Essay

Total Length: 627 words ( 2 double-spaced pages)

Total Sources: 1

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Apple's 2011 profits "are predicted to climb another $3 billion, or 22%, to $16.5 billion. The iPhone is still on fire. And the new iPad sold a whopping 3.3 million units in its first quarter on the market" (Cendrowski, 2010). While it is true that Apple is hardly an overlooked 'gem' and is a fairly mature state as a company, it is also true that it has many new 'hot' products. Apple continues to innovate, most notably with its recently-announced 'iCloud' service (Hughes 2011).

Part IV. Why you would recommend this stock at the price level? (Why it is undervalued for buying recommendation/overvalued for short selling recommendation?)

The announcement of the iCloud services is likely to mean expanded sales in the near future for Apple.
"We notice that every time a new feature is added to iTunes (like TV and movie rentals), its utility value increases, which in turn drives more hardware sales, i.e., iPhone, iPad and Macs" (Hughes 2011).

Part V. Anything major occurred during your holding period of the stock? What are the impacts?

As well as the announcement of the iCloud, the Federal government announced it is shifting from using laptops to iPads and Blackberries to iPhones (Oliver 2011).

Part VI. What do you learn from the trading simulation game?

Despite Apple's success, I have learned the importance of diversified investments, given the volatility of the markets today......

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