As the minutes counted down to the iPhone release, all that could be heard was the yelling and utter excitement of plopping down $600 plus monthly service fees for a phone on steroids. The cult has no concern for overbought conditions (for better and for worse). Message boards and rumor sites alike, battle back and forth over the stock price and latest announcements. Both sides, shorts and longs, both accusing each other of being pumpers and dumpers and paid pushers. All this over a company that barely survived the tech boom.

Apple (AAPL) was reinvented by the invention of the iPod and there is no consumer, company, or investor that can disagree with that. Hundreds of millions of iPods have been sold, not to mention some one million iPhones have been sold in under two weeks. As the days roll by, and the Apple investor crowd slowly transitions from iPhone rumors and thoughts to what catalysts are left for Apple, many investors may be in for an interesting surprise.

At MarketMatador.com, readers have long known about the excitement and ever-expanding possibilities surrounding Apple, but few have followed the advice. A long-time reader of the site sent us a message kicking himself in the head for missing Apple’s big move to $125 from $100. All we can say is, Apple’s not done yet. Earnings estimates and current analyst sentiment is pointing to marked increases in revenue and earnings, but many estimates aren’t accurately taking into effect the power that the iPhone will have on earnings.

It’s interesting that until just yesterday, many of the bigger stock and finance blogs had yet to cover Apple. At TheBullTrader.com, Steve Abraham just explained many of the issues at hand. Steve believes Apple should earn over $4 per share in earnings, while most analysts are stuck at a $3.75 earnings estimate. Among the post are some suggestions that investors could hear about a stock split in the next quarter’s earnings report on July 25th.

Apple has been on a non-stop rally since announcing exceptional earnings results and the attention grabbing iPhone. Now is the time to look further down the road for Apple’s stock and see that the bullish story isn’t quite over. The next two to three earnings results should be especially strong and the continued optimism around the ongoing revenue received from AT&T (T) wireless plans (AT&T agreed to share revenue made from the iPhones wireless plans with Apple) should only add to Apple’s market cap.

Disclosure: Long AT&T (T) and Apple (AAPL).

Place a Text Link Here!

(3 votes, average: 5 out of 5)

 Loading ...

If you enjoyed this post, make sure to Subscribe to the RSS Feed!

Related Posts:

• Leopard Release Date Delayed for iPhone
• Leopard Release Rumors Surrounding October 26th
• Buy Apple Stock Before iPhone Release
• Research in Motion and Apple can Co-Exist Despite iPhone
• iPhone Unavailable for Purchase for Close to Two Months

This entry was posted on Friday, July 13th, 2007 at 10:03 am and is filed under Apple (AAPL), AT&T (T). You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.