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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Tuesday, March 16, 2004

Valuation, G5 sales lead Apple concerns

CBS Marketwatch: "The latest take on prospects for the Cupertino, Calif.-based company came Tuesday from Banc of America Securities analyst Keith Bachman, who said he thinks the run of good luck that Apple has enjoyed this month could be over because it was mostly due to sales of the iPod digital music player ... Bachman said Apple's shares might well have reached the upper limit of their valuation for the time being due to weak sales of G5 PowerMac computers. 'We believe [G5 sales are] the single-best gauge of the growth potential of Apple,' Bachman said in a research note. 'The G5 is more important that the iPod in terms of (earnings per share) impact' ... Bachman said the company's G5 sales could turn out disappointing for the second quarter in a row. For its fiscal first quarter ended Dec. 27, Apple shipped 206,000 G5 computers, short of many analysts' estimates. Bachman estimates that Apple will ship 195,000 G5 PowerMacs in its current quarter. Bachman isn't the only Wall Streeter to take a more cautious look at Apple. Prudential Equity Group's Steven Fortuna saidthat recent Apple investors have been 'lured by the success of the iPod and iTunes' and that their enthusiasm has driven the stock's recent performance. 'The music and retail initiatives have certainly been a positive in terms of driving increased traffic and some switchers to the brand,' Fortuna said. 'But we remain cautious about the current environment as we tread through the seasonally weaker first half (of the year.)'"

[ Posted at 3:18 PM | Permalink ]