Related topics: Apple, Google, Nokia, technology, investments
Everybody knows at least one Apple nut -- the devotee who preaches to PC users about the Mac, has already owned four iPhones or trolls the tech blogs for clues about the launch of the next iPad.
Call it the cult of Apple (AAPL, news).
There's a parallel in the investment world: fanatically devoted shareholders who are delighted to ride a stock that in less than two years has more than quadrupled in value. Apple is worth $326 billion, making it the world's second-most-valuable company, behind Exxon Mobil (XOM, news).
If you possess an iota of contrarian instinct, the unanimity of bullish sentiment has to be a bit unnerving. Just about every brokerage analyst who covers Apple loves the stock. The most recent valentine came Feb. 8, when Canaccord Genuity analyst Michael Walkley reiterated his "buy" rating on Apple shares and raised his target price by $28 to $460, citing demand for the iPhone 4. Verizon Wireless began selling its version of the phone last week.
Analyst bullishness was undimmed by Apple's disclosure on Jan. 17 that Steve Jobs, the company's visionary CEO and founder, was taking a medical leave of absence, two years after he took a similar one, during which he received a liver transplant.
"One thing we like about Tim Cook," says Standard & Poor's analyst Clyde Montevirgen, referring to the company's acting chief, "is that he has taken Apple's innovation and turned it into a profitable business model."
And how. After a boffo fiscal-first-quarter earnings report on Jan. 25, most analysts raised the bar for Apple, bumping up earnings expectations for the company, reiterating "buy" recommendations on the stock and raising their price targets.
'Simply no competitor'
"Apple remains the best technology company on the planet," wrote analyst Brian Marshall of investment bank Gleacher.
Professional money managers are on board, too.
"The fact is, there simply is no competitor," said David Eiswert, manager of the T. Rowe Price Global Technology (PRGTX) Fund. Apple accounts for 9% of the fund's assets.
Indeed, Apple is a favorite among a wide variety of mutual funds, which means that you might be a member of the Apple cult without realizing it. Few short sellers, who bet on stocks to decline, are betting against Apple.
Is Apple truly the juggernaut that fans claim it is?
Well, yes. At least for this year and probably next, as products and strategies already in the pipeline play out.
