Apple Inc. (NASDAQ: AAPL) stock analysts have continued to mull over the reasons it stayed pinned in the low $500′s last week despite a plethora of reasons it might be undervalued this weekend. Contributing author to Forbes Darcy Travlos noted Saturday that Apple [news] Fatigue may be part of what’s keeping it down, corroborating with prior reports that over analysis may be to blame.
Among Travlos’ set of reasons the stock’s value dropped sharply the standard fiscal cliff tax issues and mutual fund sell-off causes are blamed for the sell-off that occurred as the stock hit $700, but she notes that those reasons do not explain the asset’s failure to peak above $530′s since the original decline. She believes it’s the psychological climate that the fiscal cliff creates for investors that is largely to blame. To her it seems that it’s not so much the fact that Washington’s outcome may be something that is detrimental to investment—people invest no matter what the conditions are. It’s the condition of uncertainty itself.
Travlos cites Wall Street as a second major cause, as analysts have consistently devalued it and have in doing so created a “negative pall” over the stock. To her this makes no sense as a $740 price target is a 45 percent upside from where the stock is today. I tend to agree. Healthy holiday sales and a $740 valuation still predict a healthy if not hoped for return.
On Saturday, The Telegraph reported on potential iWatch concepts picking up on the rumor mill and lighting Chinese news sites ablaze. What seems to have tipped off the trend is Apple’s decision to change the iPod Nano for which accessory makers have already created a watch product. According to the Telegraph, Chinese site TGBUS reported that the device will use Intel chips, and a new low-power bluetooth technology.
TGBUS also reports that a 1.5” touchscreen will be used to control the phone from the watch and that Siri will allow the user to control the watch with voice commands. The site, however, doesn’t seem to answer my obvious reaction of: What good could any of that possibly do an end user?
The phone is probably already in their hand. But maybe I’m missing something. Clearly if Apple Inc. (NASDAQ: AAPL) makes a device, it will answer some market need. It might be one people cannot conceive of yet. Even if there is no verifiable rumor that Apple Inc. (NASDAQ: AAPL) is really going to make one yet—it seems intuitive to me that the next step should revolutionize streaming video delivery.
Wired already cites Mountain Lion as the “ultimate cord-cutting OS” and Air Play mirroring makes using the $100 Apple TV a snap. Cable competition can’t keep up. I’m still not sure what’s keeping Apple from actively marketing and packaging these two developments into one rockstar device—but it’s clear to most people involved in tech that no one currently owns the Smart TV market because their interfaces are patently terrible.