Published:
August 4, 2008
The
correct answer is
(C.) Apple (AAPL)
In October 2001, Apple released
its first iPod music player. The
original device was roughly the size
of a pack of cards, held about 1,000
songs, and operated for close to 10
hours on a single charge.
For a device that would soon become
a household name, the initial
reaction to the iPod was lukewarm at
best. But initial criticisms didn't
register with consumers. In its most
recent fiscal year, Apple reported
selling more than 51.6 million
iPods; sales of iPods, music, and
related devices accounted for nearly
half of Apple's total sales in 2007.
And according to industry-data
provider NPD, Apple continues to
dominate the media player market
with a market share of more than
70%.
Apple's shareholders have been amply
rewarded for the company's success
-- Apple's stock rose more than
+2,000% since the iPod's October
2001 launch, compared to a roughly
+70% gain for the Nasdaq Composite
and just above +50% for the S&P 500
over the same time period. That
means a $10,000 investment in Apple
on the day it launched the iPod is
now worth more than $210,000.
The wave of growth that follows
these magic moments routinely powers
tremendous returns for well-placed
investors. Apple jumped into digital
music with iTunes and the iPod just
as the technology was reaching its
tipping point of widespread consumer
adoption. Apple shareholders have
since benefited handsomely from that
move.
At various times in history,
personal computers, automobiles,
cellular telephones, television and
the Internet all reached similar
tipping points. Investors who
recognized these shifts stood to
make tremendous gains as growth
accelerated.
What is the next paradigm-shifting
product that could propel a
company's stock to those
quadruple-digit gains that made
Apple's investors cheer?
StreetAuthority editor Paul Tracy
and his staff have sorted through
thousands of opportunities in order
to find the answers. In the
latest issue of the
Market Advisor newsletter,
they present an in-depth look at a
technology that is just at its
tipping point -- the point at which
investors can catch the "big wave."
To learn more about Paul's picks, or
to learn more about the
Market
Advisor newsletter,
please visit this link.
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