The Verizon iPhone press conference did nothing to boost Verizon stock. Verizon’s iPhone media event really sent its stock down. Apple stock value is tied directly to iPhone share of the market and within the week leading up to Verizon’s announcement Apple shares climbed six percent. There is no doubt that people can be getting a payday loan to purchase the iPhone from Verizon.
From rumor to news with Verizon stock
`Right after the Verizon iPhone announcement happened, Verizon stock went down 2 percent. Investment analysts expect Apple to benefit at Verizon’s expense and the market reflects that assumption. They have AT&T’s track record with the iPhone to go on. January 9, 2007 was when AT&T became the exclusive carrier for the iPhone. Now AT&T has gone down 20 percent. People would get a loan to buy Verizon stock when the buzz about a Verizon iPhone started intensifying in October. There has been a 7 percent rise in Verizon stock since then. The slump in Verizon shares was described by the Wall street Journal as a “buy the rumor, sell the news” investor mentality.
Verizon is being affected by the iPhone
The stock for Verizon is expected to continue dropping. This is why the 2011 earnings for Verizon may be hurt a little bit by the iPhone. The iPhone is extremely popular. This means Apple can pressure vendors for great deals without anyone questioning it. Verizon is also heavily subsidizing the iPhone to lure a maximum amount of customers as quickly as possible. There will be less that has to be paid for the Verizon iPhone 4 than any other. Verizon customers only have to pay $199 if they want the 16-gigabyte model with a 2 year contract. The 32 gigabyte model only costs $299 also. An analyst told CNBC that Verizon is shelling out about a $400 dollar subsidy for every iPhone it sells.
Apple stock: the sky’s the limit
Apple is the true winner when it comes to the Verizon iPhone. The iPhone market share is what drives Apply stock. Verizon iPhone rumors in the last quarter of 2010 drove Apple stock up 19 percent. When it comes to the global smartphone market, the iPhone had 3 percent in 2010. This is an increase from 2 percent in 2009. In the next five years, the numbers for the iPhone in the global smartphone market may even get to 12 percent because of the Verizon iPhone. It is good debt if you want to borrow money to buy Apple stock now. There was an estimate from the Trefis Team at Forbes. It suggests that an increase from $340 which is its current price of 25 percent may happen soon.
Articles cited
CNBC
cnbc.com/id/41022331/
Wall Street Journal
online.wsj.com/article/BT-CO-20110111-710821.html
Forbes
blogs.forbes.com/greatspeculations/2011/01/10/iphone-eats-market-share-pushes-apple-stock-above-470/
Smart Company
smartcompany.com.au/information-technology/20110111-apple-stock-rises-as-rumours-fly-over-ipad-2-verizon-iphone.html
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