Numbers Beat Expectation, But Are They Strong Enough To Drive Stock Higher?
Apple (AAPL) reported very solid numbers last night. Revenue hit $7.1 billion, up from $5.7 billion last year, or a 24% increase. Apple beat the consensus estimate of $6.4 billion. It appears Apple, once again, set the bar pretty low.
iPod sales jumped to 21 million units, up from 14 million units last year, for a 50% increase.
It appears a lot of the Apple-hype ran out last week at MacWorld and the next catalyst appears to be the launch of iPhone.
Apple’s stock, historically, has waited to appreciate until data is available on the success of a new product. Obviously, iPhone is the next big push. Wait for data points on the iPhone launch before getting into this stock. iPod is entering a seasonally weaker period and Apple needs the next great product to drive this stock higher.
January 18, 2007
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