
As a result of Apple's well-known - and some would say astonishing - outperformance of the market during the last six months, Morgan Stanley has dropped the Cupertino-tech giant's stock from its "Best Ideas" classification. While sounding like a blow to Apple's stock, the news hasn't rocked the tech stock substantially. As of 1:00 pm EST Tuesday, shares of Apple were actually trading slightly higher on the day.
During the last half-year, shares of Apple are up 28 percent. By comparison, the entire S&P is only up 14 percent. According to the Wall Street Journal, which obtained the note to investors from Morgan Stanley, analyst Katy Huberty says Apple (stock symbol: AAPL) remains a "top pick" for obvious reasons: (1) Smartphone market growth and expanded iPhone distribution (2) Emergence of the tablet market (3) Rising enterprise adoption and (4) The mobile Chinese consumer.
While it’s far from slapping the sell sticker on Apple, Huberty’s note is a welcome opportunity for Apple buyers to think a bit about the stock. Pretty much everybody agrees there’s huge growth potential. But here’s the question for investors: What are you willing to pay for that growth?
Wall Street Journal



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