The WireLurker Malware Will not Significantly Affect Apple Inc. (NASDAQ:AAPL)

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6 November 2014

Apple Inc. (NASDAQ:AAPL)’s shares decreased by 0.26% and fell to $108.57 during the morning trade on Thursday. This occurred due to the malware Wirelurker, which threatened millions of devices of the company. This malware operates by tracking a device running iOS connected to an infected computer, running OS X, via USB. The malware then downloads third-party apps to the device.

Apple Inc. (NASDAQ:AAPL) said that they are fully aware of the problem at hand and they have blocked specific third-party apps to prevent them from launching on the iOS devices. Wirelurker can potentially harm 800 million devices, of which the largest proportion is in China.

The threat was first discovered by Palo Alto Networks (NASDAQ:PANW). Apple Inc. (NASDAQ:AAPL) said that the users are recommended to download and install apps only from trustworthy sources as a precaution.

The analysts at WallStreet have rated the tech giant’s stock at “buy”. The high rating was based on the fact that company’s positive investments are converging, this will help the company outperform other tech stocks. Apple Inc. (NASDAQ:AAPL) has strengths in several areas that include growth of earnings per share, stock performance, revenue growth and expanding profits. Even though a perfect company does not exist, however, Apple Inc. (NASDAQ:AAPL) does not have any significant weaknesses.

Investors also recognize the positive factors of the company. This helped the company increase in shares over the past year by 42.65%. This rise exceeded the S&P Index. The stocks will probably move higher in the future regardless of the nice gain in the past year.

The EPS of Apple Inc. (NASDAQ:AAPL) increased by 20.3% in the last quarter as compared to the EPS in the same quarter last year. Over the last two years, the company’s EPS has grown in a positive trend only. This trend will probably continue in the future as well.

Even though Apple Inc. (NASDAQ:AAPL)’s revenue has underperformed the industry average of 13.6%. In the same quarter last year, the company’s revenue increased by 12.4%. The growth in revenue also boosted the EPS.

The ROE of this quarter increased as compared to last year. This is a display of the company’s strength. Apple Inc. (NASDAQ:AAPL)’s ROE exceeds the industry average. The company’s profit margin is 42.68% this quarter. The net profit margin is 20.10%, which is higher than the industry average.

All of these factors are a description of the company’s overall strength. With these factors showing nothing but a positive growth in the past years, it is only likely that the company will continue to progress in the coming years as well. This brings us back to the malware, WireLurker, which is threatening the company’s devices. The malware will not have a significant impact on the company overall because the company has a very strong base and an excellent growth rate. Apple Inc. (NASDAQ:AAPL) is not ignoring the malware as well; they are taking precautions to deal with the problem and are also urging their customers to do the same.

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