We all know that trees don’t grow to the sky. However, Apple’s recent price performance is challenging that law of nature and has even the most passionate AAPL bulls nervous. Barron’s captures the dilemma quite well:
Apple shares of late have morphed from growth-stock darling to momentum darling. In the span of the last five trading days, the shares rose 6%, capping off a 17% rise in the last month, and a 45% rise this year-to-date. That puts bulls on the stock in something of a quandary: Having to admit that fantastic share-price appreciation may be rather unsustainable despite the fact those same bulls have long felt Apple didn’t get enough credit for the incredible strength and staying power of its product franchises. Barrons
Over the past few weeks it has become sport to call a top in Apple. Just turn on CNBC. The same people that were calling tops at $400 and $500 are back now at $600. If you make $15 from $600 to $585 – does it make up for the $200 lost along the way? I tweeted the following yesterday:
Easier shorts out there than $AAPL, but u get more hero points for shorting AAPL…
With the number of nervous bulls and chest pounding shorts, Apple is most likely to continue going up. The Market seems to always do whatever frustrates the most people. Personally, I would like to see it go sideways into earnings next month and then kick the turbos back on – but what I want and what the market does has nothing to do with each other.
BTW, iPad competitors are more flummoxed after the release of the new iPad. Steve Jobs would be proud.
Disclosure: Long Apple