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View Full Version : Apple Stock Stronger than MSFT?


MBHockey
06-09-2005, 08:59 AM
Disclaimer: Please keep in mind i know absolutely nothing about stocks, the stock market, and things alike ;)

Anyway, I fired up the Stocks dashboard widget because i wanted to see if the big announcement from Apple had any effect on its stock. I noticed that currently, Apple's stock is priced at 37.17 (per share??) while Microsoft's is 25.41.

Does that mean Apple's stock is stronger, or better?

Phil St. Romain
06-09-2005, 09:53 AM
No, those prices per share don't reflect which is better. MS could have recently split, for example (they didn't). What you have to look at is performance during the past months, year(s), and Apple has been very strong (an iPod bubble) until the last couple of months or so. THE ANNOUNCEMENT coincided with a decline in price per share; same for Intel. It's much too early to tell what the long-term shakeout will be, however.

nkuvu
06-09-2005, 10:57 AM
In addition, individual stock price doesn't take into account the number of stocks available.

For example, if company X has stocks priced at $50 a share but only has 100 shares available, their stock isn't nearly as strong as company Y if company Y has shares at $25 with 100000 shares available. (whew, run-on sentences are fun)

Of course IANASB, this is just the way I understand it.

Also, Apple stock in particular was above $80 per share, then they split, bringing it down to $40 per share. It went up a bit, now it looks like it's going down a bit. But as Phil already mentioned, it's too early to tell how it will go.

MBHockey
06-09-2005, 11:53 AM
Interesting. Thanks guys.

DKmafia
06-12-2005, 05:28 AM
"Company with the highest stock return? Bet you an iPod you'll guess right: Apple, up 208% in the past 12 months."
-Business 2.0

im glad i invested!!!

styrafome
06-12-2005, 12:01 PM
Here is the long-term historical view of Apple vs. Microsoft:
http://finance.yahoo.com/q/bc?t=my&s=AAPL&l=on&z=m&q=l&c=msft

Apple has huge short term spikes but it never really grows because it eventually decays again. It's not grown that much in 20 years. However, Apple has been much stronger recently (http://finance.yahoo.com/q/bc?s=AAPL&t=2y&l=on&z=m&q=l&c=msft). Microsoft's graph is flat now because they are looking for a new growth source, while Apple has come up with a few (iPod, OS X). But Apple always depends on its next "hit," and every hit fades eventually.

Another example, Apple vs Adobe:
http://finance.yahoo.com/q/bc?t=my&s=AAPL&l=on&z=m&q=l&c=adbe

Apple's a fun stock if you do short term trades, but if you are trying to hold something for a nice retirement, other stocks will get you more money when held over a period of decades.

Phil St. Romain
06-12-2005, 12:21 PM
I was in on that iPod run and a couple of others. It seems the iPod run has peaked, but I'm expecting the new Intel chip Macs next year to make a difference.

As styrafome noted, it takes some kind of novel product to boost Apple, as their computer market share has declined through the years. I've often wondered why they don't come out with some kind of PDA -- especially an iPod/PDA combo. That would surely be a smashing hit.

ArcticStones
06-13-2005, 07:04 AM
I've often wondered why they (Apple) don't come out with some kind of PDA -- especially an iPod/PDA combo. That would surely be a smashing hit.

It sure would! Iíve been waiting for that for some time.

To be honest, my hopes and expectations for MacWorld 2005, which I attended in San Francisco, was that Mr Jobs would announce a PDA/cellphone/iPod combo. A guaranteed winner if the price is right, and the functionality/GUI as good as we have come to expect from Apple.

In fact, Iím still hoping. :rolleyes:

dappy
06-13-2005, 11:51 AM
To be honest, my hopes and expectations for MacWorld 2005, which I attended in San Francisco, was that Mr Jobs would announce a PDA/cellphone/iPod combo. A guaranteed winner if the price is right, and the functionality/GUI as good as we have come to expect from Apple.

Only if it makes coffee and does the dishes too.
:D

But along with gadgets, the iTunes phone is supposed to come out sometime soon right? Maybe that will give the stock a bump and hold it over until the MacIntel (I stole it from cnet) comes out.

Blackboot
06-14-2005, 05:28 AM
Hey styrafoam...you have to be careful when you look at the charts showing Microsoft compared to Apple. Those charts ONLY show you their stock prices. What it doesn't show you is that Apple has not really held steady over the years. They have made several splits, to make it easier for ordinary folks to buy them, over the years, including one this past February...you'll notice a big fall in February of this year, because the stock prices dropped by 50%, but the stock quantities increased by 100%. I don't believe that Microsoft is in the habit of splitting, so they probably don't have the same format going on in their graphs.

Blackboot.

styrafome
06-14-2005, 10:19 AM
Of course those charts are split adjusted. It's the only way to realistically compare stocks. Microsoft and Apple didn't generate those graphs, Yahoo did.

And they don't chart the prices, as you say. They show percentage gain.

Phil St. Romain
06-14-2005, 10:19 AM
Blackboot, those yahoo finance charts do take into account splits. Just check it out for Apple during the past year and you'll see how they handle it.

- Edit: LOL :) Cross-posted with styrafome