Hitching Apple’s Stock To Steve’s Private Jet

By Arik Hesseldahl
With Apple shares down nearly 40% from historic highs late last year, investors are looking for any sign of a rebound. Morgan Stanley analyst Kathryn Huberty found an odd one: Steve Jobs’ private-plane bills. Awarded his own $90 million Gulfstream V jet in 2000, Jobs gets reimbursed when he uses his jet for business. And recent SEC filings show he billed Apple $550,000 during the last three months of 2007—triple his average bill for each of the prior six quarters, Huberty says. In a Feb. 26 research note, Huberty argues this indicates Jobs has been globe trotting to cut deals, a sign that Apple is “preparing for meaningful product launches.” True, Jobs flew to Europe during the quarter, launching the iPhone in Britain, France, and Germany and likely meeting with potential carriers elsewhere. (IPhone’s Irish launch is set for Mar. 14.) And rumors of talks with Chinese carriers were in the air. But one other element explains at least part of Jobs’ rising flight expenses: jet fuel prices, which rose 57% in 2007, the Energy Dept. calculates. Apple declined to comment on Huberty’s theory.