Many investors profit a lot from selling Apple shares high - usually ahead of the company's hyped media events - and buying low when the Street's enthusiasm tapers off following Apple's product introductions. It's a speculative game that can pay off big time if you're willing to bet tens of thousands of dollars.
For the rest of us looking to invest long-term in potent shares that will eventually bring enough profits to put our children through school - well, let's just say that AAPL is not the right stock as Apple doesn't pay a cash dividends and hasn't been doing so since 1995.
But even at about $320 a share, AAPL could be a steal, says Piper Jaffray's resident Apple analyst Gene Munster who estimated the company would hit $200 billion in annual revenue in the next five years, catapulting the stock above a thousand dollar a share mark.
It's not such a totally outrageous assumption, mind you. Apple reported in its second, third, and fourth fiscal 2010 quarters revenues of $13.50 billion, $15.7 billion, and $20.34 billion, respectively, on the heels of strong sales of its Mac, iPhone 4, and iPad product families. Annualizing those results means Apple's already a $60+ billion company. In addition, Wall Street believe Apple will grow its 2011 revenue to $89 billion.
Of course, Apple largely owes such an astounding growth to a string of smash hits, namely the iPhone and iPad, that helped the company conquer new markets which enabled it to add additional revenue streams to its bottom line. Consequentially, should Android or other rivals derail Apple's growth in mobile, AAPL will feel the pain and most likely nosedive sharply.
Note: The author doesn't own shares of Apple nor any other shares whatsoever.Source: Business Insider