Apple Shares Jump 24% on Announcement Rumors

Apple Computer Inc. shares rose 24% amid optimism that the battered maker of Macintosh computers will have surprise news at next week’s MacWorld Expo in San Francisco.

The company’s shares rose $3.25 to close at $16.25 in Nasdaq trading.

After August’s MacWorld Expo in Boston, the company unexpectedly said Microsoft Corp. would invest $150 million in the ailing company. The news lifted Apple’s stock to $29.19, its 52-week high, on Aug. 7.

“People are expecting lightning to strike twice,” said Tony Maramarco, who helps manage the Babson Value portfolio for David L. Babson & Co., which owns Apple shares. “People are hoping something close to the same magnitude will come out of MacWorld this time.”

Though some are speculating about new products and strategy that Apple may introduce at MacWorld, analysts have said they don’t expect any news or many new products to come out of the show, which begins Tuesday.

CNet’s News.com online information service reported earlier this week that IBM Corp. would introduce a new, faster processor for Apple’s PowerPC computers at MacWorld, and that other companies would unveil Macintosh upgrade cards for older models. Officials at IBM and Apple weren’t immediately available to comment on the report.

Apple also isn’t expected to name a new chief executive at the show. Company co-founder Steve Jobs is still serving as interim chief executive, a position he has held since Gilbert Amelio was ousted in July.

Louis Mazzucchelli, an analyst at Gerard Klauer Mattison & Co., cited Apple’s new online store, better-than-expected performance in Europe and the popularity of the high-end Power Macintosh G3 computers in anticipating improved results from the company.