Chanel Pham

Period 5
Personal Finance
Keeko
May 11, 2014

Stock Summary


During the ten weeks that we had the stock assignment the stock
company that brought me the most profit was Apple (APPL). I purchased 15
shares at $501.99 per share. At the end of the ten weeks the stock valued at
$584.54, making the net gain $1238.25. This assignment showed me that
investing in stocks is an easy way to attain liquid money.
During the March quarter, Apple brought in most of the handset profits
with a 65% share. Apple was able to rake in a 100% share of the profits due
to losses from other vendors including Nokia, BlackBerry, Google, and
Microsoft (Arnold p. 1). One factor that has helped with Apples success is the
potential purchase of Beats. Apple has been said to lost its cool factor and
Beats has the popularity to help regain Apples image. Beats will also get the
streaming service to off the decline in iTunes (Saintvilus p. 1). Apple ranked
4
th
in returns along the largest companies in the S&P 500 over the last decade.
Sales from iPhones and iPads have driven Apple shares up 3,600% in that
decade. Apple has sold 470 million iPhones and about 200 million iPads since
they have been released (Girland p. 1).
In April, Apples Board of Directors authorized another increase to the
companys program to return capital to its shareholders. The Board also
announced a seven-for-one stock split. That entitles each Apple stockholder
will receive 6 additional shares for every share. Apple leads the digital music
revolution with iPods and iTunes. Apple has already reinvented the cell
phone with iPhones and use of the App Store. Apple will continue to define
the future of mobile media and computing devices (p. 1).

While completing this 10 week assignment, the company that brought
me the least amount of profit was Google (GOOG). The buying price I paid
was $1,138.76 per share and I purchased 10 shares. At the end of the 10
weeks, the stock valued at $518.05, making my net loss $6,207.10. This was a
very big loss, I knew investing in stocks came with risks but I never thought
that a large amount of money can be lost in that short period of time.
In April, Google reported the first-quarter financial results highlighting
that the debt was $6.2 billion when the net income was $3.5 billion (Aarnio
p.1). Apple has Google beat with it comes to app downloads this quarter. The
Apple App Stores revenue gain rose 1%, from 60% to 61%, while Google Play
claimed only 39% of the revenue from the two app stores (Ausick p. 1). One
of Googles challenges is convincing marketers to pay the same amount of
money for mobile ads as desktop ads. Googles stock has fallen 5.5% in March.
Investors believe Googles mobile marketing strategy will be a dud and are
starting to become impatient (OToole p. 1).
A recent class action suit was announced against Google saying that the
company tried to artificially raise the price of smartphones running on
Android. This lawsuit claims that the company violated several antitrust acts
and calls for Google to reimburse consumers who bought and Android phone
at an inflated price. The lawsuit also states that Google had the companys
search engine to be pre-loaded on the phones (Sahagian p.1). Another lawsuit
was filed against Google by Oracle. Oracle claimed Google used a Java code
without paying because of the rush to create and release Android. These two
cases has affected Googles reputation and caused the company to think of
ways to do some serious damage control (Decker p.1).
Resources:
Aarnio, Markus. "Google: 7 Different Insiders Have Sold Shares During
The Last 30 Days." (GOOG). 2 May 2014. Web. 11 May 2014.
http://seekingalpha.com/article/2187033-google-7-different-insiders-have-
sold-shares-during-the-last-30-days.
Apple Expands Capital Return Program to Over $130 Billion." Press
Release Distribution, EDGAR Filing, XBRL, Regulatory Filings. 23 Apr. 2014.
Web. 11 May 2014.
http://www.businesswire.com/news/home/20140423006618/en/Apple-
Expands-Capital-Return-Program-130-Billion#.U3mhfWhgPzI
Arnold, Nathanael. Apple Maintains Mobile Phone Profit In March
Quarter. Wall St. Cheat Sheet. N.p., 8 May 2014. Web. 11 May 2014
http://wallstcheatsheet.com/technology/apple-maintains-mobile-phone-
profit-lead-in-march-quarter.html/?ref=YF
Ausick, Paul `. "Apple Beating Google in App Downloads."
247wallst.com. 24/7 Wall St., 8 May 2014. Web. 11 May 2014.
http://247wallst.com/apps-software/2014/05/08/apple-beating-google-in-
app-downloads/
Decker, Susan. "Oracle Can Pursue Claims Google Copied Java, Court
Says." Bloomberg.com. Bloomberg, 9 May 2014. Web. 11 May 2014.
http://www.bloomberg.com/news/2014-05-09/oracle-can-pursue-claims-
google-copied-java-court-says.html?cmpid=yhoo
Girland, Mark. Apple Inc: The Good Times Are Not Over. The Motlet
Fool. Interactive Data. 17 April 2014. Web. 11 May 2014.
http://www.fool.com/investing/general/2014/04/17/apple-the-good-times-
are-not-over.aspx
Saintvilus, Richard. Why Apples Beats Deal Is a Sound Strategy. The
Street. N.p., 9 May 2015. Web. 11 May 2014.
http://www.thestreet.com/story/12702606/1/why-apples-beats-deal-is-a-
sound-strategy.html?puc=yahoo&cm_ven=YAHOO
Sahagian, Jacquelin. "Google Faces Class-Action Suit Over Secret
Android Agreements." Wall St. Cheat Sheet. 2 May 2014. Web. 11 May 2014.
http://wallstcheatsheet.com/technology/google-faces-class-action-suit-over-
secret-android-agreements.html/?ref=YF.