Apple Stock up on Windows-based Macs
Apple Computer Inc. shares shot up in afternoon trading on Wednesday after the company unveiled software that allows users to run Microsoft Corp.'s Windows operating system on Apple computers -- a move that Wall Street believes will help Apple grow market share.
It's not a new concept -- software that purportedly did roughly the same thing as Apple's new "Boot Camp" program has been available for years, but many have perceived it as sluggish and bug-filled. Apple's decision to embrace Windows, on the other hand, is believed to be a major game changing event.
Deutsche Bank analyst Chris Whitmore, who has a "Buy" rating on Apple's stock, said the computer maker is likely to grow market share, which could result in an earnings upside.
"We believe today's announcement sets the stage for further share gains by Apple," Whitmore wrote in a note. "Our estimates suggest that each point of share Apple takes in the overall personal computer (PC) market translates into a positive 25 cents per share to our fiscal year estimates."
American Technology Research analyst Shaw Wu, who also has a "Buy" rating on the stock, speculated that Microsoft's forthcoming new operating system, Vista, will be supported on a Mac and said the announcement is a big deal that could be a "significant game changer."
Shares of Apple, which have traded between $33.11 and $86.40 over the last year, were up $4.63, or 7.6 percent, at $65.80 in afternoon trading, while shares of PC maker Dell, which could potentially lose from Apple's announcement, were down 9 cents at $29.76. Both stocks trade on the Nasdaq.
It's not a new concept -- software that purportedly did roughly the same thing as Apple's new "Boot Camp" program has been available for years, but many have perceived it as sluggish and bug-filled. Apple's decision to embrace Windows, on the other hand, is believed to be a major game changing event.
Deutsche Bank analyst Chris Whitmore, who has a "Buy" rating on Apple's stock, said the computer maker is likely to grow market share, which could result in an earnings upside.
"We believe today's announcement sets the stage for further share gains by Apple," Whitmore wrote in a note. "Our estimates suggest that each point of share Apple takes in the overall personal computer (PC) market translates into a positive 25 cents per share to our fiscal year estimates."
American Technology Research analyst Shaw Wu, who also has a "Buy" rating on the stock, speculated that Microsoft's forthcoming new operating system, Vista, will be supported on a Mac and said the announcement is a big deal that could be a "significant game changer."
Shares of Apple, which have traded between $33.11 and $86.40 over the last year, were up $4.63, or 7.6 percent, at $65.80 in afternoon trading, while shares of PC maker Dell, which could potentially lose from Apple's announcement, were down 9 cents at $29.76. Both stocks trade on the Nasdaq.
posted by Amit Shah @ 11:30 PM
0 comments
