Bulls Fight Back for Apple

Bulls Fight Back for Apple
Bulls Fight Back for Apple

After trading below the $400 level for the past few days, the shares bounced back up and have climbed well above the important technical level of $405. The Apple shares gained on Monday based on the news that the firm is in process to trademark the term ‘iWatch’ in Japan as there are rumors that another firm may unveil such product as well. This action certainly assured that Apple ‘is’ up to something and may release another breakthrough product in near future, hence increasing the investor confidence which may continue to take the share price further up.

Moreover, according to the Wall Street Journal, there is news that the company may get into a fantastic deal with China Mobile which is the largest Chinese cellular company. The deal would enable Apple to boost the sales of iPhone to nearly around 700 million subscribers of China Mobile.

The P/E ratio of AAPL is 10 while there is no debt on its balance sheet, and has a profit margin of around 35%, as the company is yielding a healthy 2.9% dividend on its stock.

Yahoo gone Acquisition-Savvy

Yahoo shares jumped the most with 3.7% rise and closed at nearly $25.6 level on Wednesday, as the chief executive of the company, Marissa Mayer held her first annual meeting with the major stakeholders in order to chalk out the progress being done in enticing the mobile phone users. Mayer also recently announced new growth and employee perks to motivate the employees while the company’s acquisition of a blogging platform Tumblr in the month of May also helped the stock price boost up to certain extent.

Moreover, the company acquired Xobni Corp for around $70 million, which is a contact-management software developer firm. Also, the iPhone video tool Qwiki was also acquired by Yahoo as the company’s top management believes that a number of acquisitions by the company could guarantee some success, rather than one or two.

Mixed Data for the U.S Market investors

The unemployment claims in the United States fell by around 5000 in the past week while the ADP-Non-farm employment number witnessed a positive change by more than 50,000. However, on the other hand the trade balance and a less-than-expected growth in the non-manufacturing sector of the country disappointed the investors that led the S&P 500 index to close back again near 1616 level, after testing 1619 area earlier in the U.S session on Wednesday. Whereas, Dow Jones index breached the 15000 level successfully and closed at around 14988 level after testing the 15025 mark yesterday.