Morgan Stanley Knocks Apple Stock Down a Peg

[Michael Essany]

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?

AAPL turned up on Morgan Stanley's "Best Idea" list for investors this past May. And the recommendation has worked out well for many who capitalized on the opportunity to buy. And for new investors, there are still plenty of reasons for buying excitement. Among the reasons, says Huberty, are the prospect of the iPhone hitting the Verizon network, a second generation (and more competitively priced) iPad in spring 2011, and the release of the iPhone 5 in June 2011.

Wall Street Journal

[Poseidon79]

Without citing the reasons why it seems rather arbitrary. Apple has shown no signs of slowing down since the iPhone launch back in 2007. They own the tablet market... their market share in the smart phone market once non-existent is now steadily growing. The halo effect of the iPhone is increasing their PC market share. If I had extra cash I would throw down for Apple stock in a heart beat.

[unison999]

It is not "Best Idea" but it does not mean it is worthless, just not best idea now. The market Apple is in many people start to come up with comparable devices, so that means market share will drop a bit. There is absolutely nothing new coming out, everything is just a newer version of their existing product. Though it is still a good stock to own it is just not the "best idea" is all that article is saying.

[Tyronal]

What a troll you've become messy. Goldman Sachs came out yesterday and stated they expected the stock to rise. If you can read, then read this. Apple pops on Goldman note - Apple 2.0 - Fortune Tech
Your tripe just gets more ridiculous every day. What you know about the stock market would fit on the head of a pin.

[Rob2G]

I think My mom owns apple stock, I wonder how much its worth. I think I really should start investing. I have no Idea how the stock market works.

[StealthBravo]

Without citing the reasons why it seems rather arbitrary. Apple has shown no signs of slowing down since the iPhone launch back in 2007. They own the tablet market... their market share in the smart phone market once non-existent is now steadily growing. The halo effect of the iPhone is increasing their PC market share. If I had extra cash I would throw down for Apple stock in a heart beat.

+1

[Dorkenstein909]

dammit dad! y didn't you wait to sell those stocks??

[zeroskater61]

I think My mom owns apple stock, I wonder how much its worth. I think I really should start investing. I have no Idea how the stock market works.

Am not sure my self but my boss buys and sells stock shares all the time and going from what he's told me...

Say you buy 5 stock share for $1.50 . That's a total of 7.50 outta your pocket.

Ok now say your stock goes up .50 so it's now at $2 a share. You just made $2.50 and if u wish to sell it to claim those $2.50 you could or just keep it and hope your luck keeps going up.

So that's about it the more stock shares you buy the more $$$$ you'll make. My boss told me he made $18,000 in a month witch he was happy about but once the day for him to do his taxes came buy he had to pay $8,000 for those $18,000 he made so over all he made $10,000.

So in a way it's good but just hope you make a good amount to where you could cover your taxes later on!!

[steve-z17]

I think My mom owns apple stock, I wonder how much its worth. I think I really should start investing. I have no Idea how the stock market works.

I would love to get in on Apple stock as well! The only thing I hate is how much I have to pay for 1 single share now ($320)!!

[EskimoRuler]

Without citing the reasons why it seems rather arbitrary. Apple has shown no signs of slowing down since the iPhone launch back in 2007. They own the tablet market... their market share in the smart phone market once non-existent is now steadily growing. The halo effect of the iPhone is increasing their PC market share. If I had extra cash I would throw down for Apple stock in a heart beat.

+1 from me too

[Mes]

Without citing the reasons why it seems rather arbitrary. Apple has shown no signs of slowing down since the iPhone launch back in 2007. They own the tablet market... their market share in the smart phone market once non-existent is now steadily growing. The halo effect of the iPhone is increasing their PC market share. If I had extra cash I would throw down for Apple stock in a heart beat.

-1

Apple is and has been priced for perfect execution. Risk/reward ratios favor a pause. Don't follow the heard. Pick your price. It's more likely we'll see 300 before we see 400.

[zeroskater61]

-1

Apple is and has been priced for perfect execution. Risk/reward ratios favor a pause. Don't follow the heard. Pick your price. It's more likely we'll see 300 before we see 400.

More likely we'll see 300 before we see 400

Are you taking about the apple stock shares?
Cause if you are there stock has a price of $320.29 a share right now.
Which actually went up from the last time I looked. They where going for less then $150 a share. So apple is doing pretty good right about now. Is it because of the whole holiday coming up? Who knows but guess we'll find out.

[Mes]

Apple has been almost perfect, a darling on wall-street and priced for perfection. How long will this last? No one knows, but the odds favor a reality check.

[usertech]

Apple stock will still climb I cant see it going down unless they release something like the Apple cube again.

[unison999]

So in a way it's good but just hope you make a good amount to where you could cover your taxes later on!!

It is called capital gains tax, make lots of money pay lots of taxes.

[quidam_brujah]

More likely we'll see 300 before we see 400

Are you taking about the apple stock shares?
Cause if you are there stock has a price of $320.29 a share right now.
Which actually went up from the last time I looked. They where going for less then $150 a share. So apple is doing pretty good right about now. Is it because of the whole holiday coming up? Who knows but guess we'll find out.

AaaaAAaaagghhh!