Apple may once again be the darling of Wall Street. Many analysts are expecting AAPL to beat its earnings projections, which some believe would drive the stock over $100 a share. I have AAPL in my portfolio, and would love for the company to increase in its price. But the earnings report isn't the main driver for my excitement in the future of AAPL. As a value investor, I'm interested in great businesses that can continue to grow its business, increase its market share, and reward investors through dividends and price appreciation. Price appreciation is a secondary and very short term goal. With a longer investing horizon, increasing value and dividends are what I'm really after.
Apple has been creating value for shareholders in many ways. One was through the aqcuisition of Beats by Dre. With this acquisition, Apple was able to create another revenue stream, quietly enter into the wearable technology space, and beef up their content and music offerings. Apple has also increased their dividend and has stayed committed to its share repurchase program. Another way Apple will increase shareholder value is through its partnership with IBM. From being direct competitors, to synergetic partners, this is one of the most exciting news we've had from AAPL this past week. AAPL is already a dominant force in consumer technology and products. AAPL also has great partnerships and contracts with the educational departments around the country, bringing Macs to classrooms throughout the U.S. and exposing children to the wonders of Apple at an early age. Now Apple will be able to break into the business sector, offering apps catered to business functionality and productivity on a global scal with IBM.
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- AAPL 15-Year Financial Data
- The intrinsic value of AAPL
- Peter Lynch Chart of AAPL
The moves that Apple has made won't be seen in the earnings announcement today. Quite frankly, most analysts will be too concerned with earnings or any indication of an iWatch, that the real value will be over looked. Apple may crush its earnings, or it may not. One thing is clear, Apple is going to increase shareholder value and increase its market share in more than one sector.
Disclosure: I am long AAPL