The last time I saw 5,000 on the NASDAQ was way back in early 2000, prior to the collapse of the technology sector and all of the froth and euphoria on Wall Street. If you were trading back then, you would have recalled the staggering froth and frenzy that drove the technology sector to heights that were simply not sustainable and excessive.
Well, it took more than a decade, but it looks like the technology sector is on a roll again. I have been bullish on technology stocks as the top growth area in my outlook for this year and so far, this is panning out.
NASDAQ Push to 5,000 Much Different Now Than 15 Years Ago
The NASDAQ traded at its highest level since 2000 last Thursday, when the index came within 160 points, or 3.3%, of taking out the 5,000 level. A break above 5,000 would be a big deal for the technology sector.
Chart courtesy of www.StockCharts.com
Of course, the ascent of Apple Inc. (NASDAQ/AAPL) to nearly $130.00 a share and a staggering market cap of $741 billion is helping the index, providing stock market leadership.
As we near 5,000, there will be talk again of an exhausted and euphoric technology sector akin to 2000, but things are different this time around. The push to 5,000 has taken much longer and has been steadier versus 15 years ago, when everyone was buying without any thought to valuation or the underlying fundamentals.
I vividly remember seeing the big moves everyday and what I thought was the senseless buying of the technology sector. I recall friends taking out loans … Read More
Tim Cook must be pleased with the results of Apple Inc. (NASDAQ/AAPL). Heck, the company sold an amazing 74.5 million “iPhones” and has become the top seller of smartphones in China, surpassing rival Samsung Electronics Co. Ltd. and China-based upstart Xiaomi Inc. (aka “the Apple of China”). Based on the numbers, China has become a massive growth region for Apple. But is the iPhone’s success enough to keep the stock on top?
Apple Stock Undervalued? Icahn Says So; I Say Maybe
I recently discussed Apple a few weeks ago when the stock was trading at $108.00. It’s now up $10.00 in little more than a week.
Chart courtesy of www.StockCharts.com
I just watched famed investor Carl Icahn on CNBC. He’s a major shareholder in Apple and a strong critic, especially when it comes to what to do with Apple’s massive $178-billion, or $25.00-per-share, cash balance. Icahn is bullish on Apple and believes the stock is vastly undervalued at around 10X its forward earnings when you discount in the free cash.
Now, I do agree with Icahn that Apple is worth more, but there are some issues the company has to deal with before I would agree with the $200.00 price he was throwing around.
In the fiscal first quarter, revenues grew 30% to $74.6 billion and made a staggering $18.0 billion, or $3.06 per diluted share. Of course, selling the number of iPhones it did definitely helps.
Apple’s iPhone Sales Enough?
Apple is clearly being driven by its iPhone, as sales of its “iPad” and “Macs” were soft. Moreover, the newly minted Apple “Watch” is seeing mixed results. (In my … Read More
Apple Inc. (NASDAQ/AAPL) has become the Wal-Mart Stores Inc. (NYSE/WMT) of the technology sector stocks. Under the aggressive strategy of CEO Tim Cook, the company continues what its legendary founder Steve Jobs started—to rule the smartphone and mobile space.
The company has developed a cult-like following in the United States and is rapidly trying to take over the worldwide technology space. Apple is currently number two among tech stocks globally, with ample space to grow, especially in the smartphone-hungry Chinese market, where there are more than 800 million subscribers.
As far as technology stocks go, I have talked about Apple in the past and have long been a bull on the stock, believing the company could be the first to surpass the one-trillion-dollar valuation mark.
Apple a Heavyweight in the U.S. Tech Sector
What impresses me about Apple is its vision and strategy to move into other mobile applications, rather than simply relying on sales of its “iPhones.” The company is aggressive and works hard to defend its patents against all its rivals, including Samsung Electronics Co. Ltd., the world’s top maker of smartphones.
Apple is closely followed by its rivals. Even a patent for a camera system that Apple applied for a few years ago and was only approved last week wreaked havoc at GoPro, Inc. (NASDAQ/GPRO), the maker of head-mounted and underwater camera systems. While there was no evidence Apple was looking at a competitive product, the fear it generated among GoPro investors was massive and shows the threat Apple holds over its competitors in the tech sector.
With a market cap of about $634 billion and truckloads … Read More