2 Key Reasons Apple Stock Will Hit $100 Sooner Than You Think

As investors get used to its new post-split look, Apple stock remains poised to pop in the months and years ahead.

Jun 17, 2014 at 5:02PM

Forget $645: $92 is new reality for Apple (NASDAQ:AAPL) stock these days.

After the tech giant's shares split 7-for-1 last Monday, Apple's shares are looking decidedly cheaper to the untrained eye. However, the Apple bull case remains significant and, more importantly, completely unchanged despite the dollar-and-cents differences that are mostly (but not entirely) cosmetic in nature.

So as investors continue to wrap their heads around Apple stock now trading in the double digits, let's look at several key catalysts that I believe will have Apple stock back into the triple digits sooner than perhaps many investors realize.

1. A blowout quarter is in the works
With much of the post-WWDC investing narrative focusing on Apple's second-half product launch cycle, many investors appear to overlooking the here and now for Apple.

That will probably turn out to be a major oversight, as several key indicators have recently suggested that Apple's in the midst of another record-setting quarter. iPhone shipments are trending toward 39 million units shipped in Apple's current fiscal third quarter, well ahead of the current FY Q3 record of 31 million iPhones Apple set last year and starkly higher than the 35 million average estimate that Wall Street's calling for this quarter.

The iPhone shipments figure is an especially important driver of Apple's financial performance, as it's not only Apple's most profitable product but also its largest single source of revenue. So an unexpected boost to iPhone shipments implies a home-run earnings report once again on the way for Apple stock.

2. iPhone 6: An undeniable opportunity
The iPhone 6 has three extremely important variables working it its favor, which will probably make it Apple's most successful iPhone ever.

For starters, Apple's aging installed base of iPhones, as well as the company's move to slowly withdraw support for legacy devices such as the iPhone 4, mean a lot of consumers will probably be ready to pull the trigger on a newer iPhone with the advent of the iPhone 6. This fact, combined with Apple's likely screen-size increases and segmentation into 4.7-inch and 5.5-inch models, also plays into the broader theme of larger screen sizes we've seen play out across the entire global smartphone market in recent years. And lastly, Apple's gone a long way in extending its global distribution footprint, which will position Apple's new handset to be accessed by an entirely new set of consumers when it unveils the iPhone 6. No matter how you slice it, the iPhone 6 presents a potentially historic opportunity for Apple investors.

More catalysts ahead for Apple
These two factors are arguably the most significant short-term catalysts that could propel Apple stock above $100 in the months ahead, but they're by no means the only ones working in Apple's favor. Apple's long-awaited iWatch, as well as any number of the myriad of new product offerings Apple could have in the works, will help create entirely new profit centers for the tech giant. Moreover, each new additional new product offering will further solidify the Apple ecosystem's already massive network effects. Apple's recently unveiled Health app, and upcoming proliferation of wearable-related software, should serve as a healthy reminder of this key fact.

The analyst community appears to be slowly warming to the idea that Apple has plenty of drivers that could push its stock price beyond $100 in short order. Last week, RBC Capital Markets increased its price target for Apple stock to $100, citing many of the same factors I've mentioned here, and I think it's safe to expect more of this behavior from the analyst community in the months to come. So while shares have been on a tear over the past few months, I'm still a firm believer that Apple's recent rally has plenty of room to run in the months to come.

Another way to invest in Apple's iWatch innovation
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Andrew Tonner owns shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers