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Speculators Eye on Apple's Stock, Owing to Product Launch

Speculators Eye on Apple's Stock, Owing to Product Launch

Product launch events are so decisive for marketing and promotion of any business that they can shake the financials as well as stock price of the company in a single trading day. With the launch of latest product iPhone 5, which was scheduled on Wednesday, 12th September 2012, Apple Inc. (AAPL) became the favorite stock pick of investors, speculating that it may touch new high by Friday. Though suspicious technical signals and bearish stock performance history during the earlier product launches proposed a 'call for caution', investors preferred to bet on AAPL with bullish expectations this time.

Being the most valuable technology oriented company in the world, the stock of Apple was trading slightly lower than its recent life time high on Wednesday. On the other hand, one of the biggest rivals of Apple, Samsung Electronics' share price rose to three week high, shrugging off the Apple's planned launch of iPhone 5. During the early afternoon trading session, Apple's stock advanced by 1.6% and rose to $668.29 immediately after the product launch announcement. The stock price further surged to $671.20 during the after-hours trading session of Wednesday evening. According to the report released by Wall Street Journal, the option market is indicating bullish activity with all the option contracts of Apple showing strong demand on the expectation that the stock may rise further by the end of this week.

The market value of the Apple Inc. strongly depends on the extent of consumer response received on its refreshed line of products. Till now, the company has mixed record with its previous product launches. The share price has fallen after each of four iPhone releases, while surged after each of three iPad launches, since year 2008. Since the beginning of this week, Apple's stock was trading in a narrow range but with substantial volumes. Many market analysts believed that in this evolving market of smartphone, it is becoming difficult for companies to survive in the competition with unique and unexpected features.

The stock price of Apple appreciated by more than 61% in this year and has been showing new highs throughout this summer as the product launch was already on the cards. Although AAPL is currently trading very close to its all time high of $683.29, the company has posted lower than expected second-quarter earnings, owing to the fact that many iPhone customers were eagerly waiting for iPhone 5. So, the recent product launch from the Apple and its aggressive expansion into smartphone market has really produced higher expectations from the company's earnings report which will be released during the end of September month.