Shares of Apple bled more than 17 percent of their value in Monday morning trading on the Nasdaq stock market after analysts for investment banks Morgan Stanley and RBC Capital both downgraded their outlook on the company, citing a worsening consumer environment.
Apple's iPhone 3G product cycle and high margin revenue from associated services and software can elevate the company's valuation closer to that of Nintendo, says Morgan Stanley, which sees growing similarities between the two firms' business models.
Apple's rapidly rising mindshare amongst current generation college students is setting the company up for an "aging phenomenon" that will spur further market share and revenue growth as those students enter the work force, investment bank Morgan Stanley said Wednesday.
The sheer amount of money spent by Apple on research — as well as maintaining chief executive Steve Jobs' private jet — suggests that the company is working feverishly on international iPhone releases and new products, according to a new research note from Morgan Stanley.
While researchers for investment bank Morgan Stanley aren't disputing that slowing iPod growth presents a negative scenario for Apple's share price, they're pointing to recent history this week in advising their clients that now would be the wrong time to bet against the company.
In a bullish research report released Friday, Morgan Stanley raised its price target on shares of Apple Inc. to $180 from $150, but said that the stock could potentially surge as high as $225 given the company's operating leverage and the upcoming launch of an ultramobile Mac.
Apple Inc.'s market capitalization broke the $100 billion barrier for the first time on Wednesday, as shares of the company surged above $116 following a bullish research report from investment bank Morgan Stanley.
Citing its thesis that Apple's operating leverage remains underappreciated by investors, Morgan Stanley on Wednesday initiated sharp increases to both its earnings forecast and price target for the Cupertino-based consumer electronics maker.
An expert at Morgan Stanley has reasoned that of all the major computer makers in play during the release of Windows Vista, the only one to avoid taking a hit in sales was the one company that chose not to run the software at all: Apple.
Speaking at the Morgan Stanley Technology Conference in San Francisco on Tuesday, Apple chief financial officer Peter Oppenheimer fielded questions on the company's upcoming launch of Apple TV and iPhone, while also talking at length about Mac OS X 10.5 Leopard and strategies in the retail segment. A full transcript the near 40 minute session follows.
A survey conducted last month by investment bank Morgan Stanley found that interest in Apple's upcoming iPhone is much larger than the market currently anticipates, driving the firm to raise its estimates for the Cupertino-based iPod maker through 2007.