On Monday, investors saw Apple (AAPL) run-up before AT&T’s (T) earnings results, which came out the next day before the bell. Based upon the earnings numbers on Tuesday morning, investors saw weakness in both companies. Therefore, on Tuesday, Apple was hit particularly hard by the idea that they had weak sales numbers for the iPhone. Shares finished down more than $8 per share on Tuesday. It was clear to see the effect that both worried investors and confident short sellers were having in the stock.

Things quickly changed today. At the closing bell, Apple had finished up $2.37 to $137.26 per share. Shortly afterwards, Apple released the Q3 investor earnings call and results. Earnings rose 73% from last year, “spurred on by strong sales of its flagship Macintosh computers and iPod digital media players, as well as shipments of 270,000 of its new iPhones.” Apple earned 92 cents per share (consensus estimates were at 72 cents), or $818 million, compared with 54 cents per share a year ago. Gross margins climbed to 36.9 percent, compared with 30.3 percent as of last year.

Investors are about to realize one of the greatest growth companies in the United States is soon to reach $200 per share. Apple has exponential growth and will soon be looked upon as a real competitor of Dell, HP, and other popular Windows-based computer manufacturers. As we highlighted a few day ago, Apple has quite some time until reaching those levels, but everything is optimistic. Remember, MarketMatador.com has long been a supporter of Apple, and we believe there’s a real strength in Apple, which will send shares to $200 by the end of the year.

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Disclosure: Long Apple Inc. (AAPL)

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This entry was posted on Wednesday, July 25th, 2007 at 7:07 pm and is filed under Apple (AAPL). 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.