Shares of Apple Inc. today opened up $13.64, or 7.82% at $188.00 to set a new all-time intraday high and pass the market values of both IBM and Intel.
Apple’s market value currently stands at $163,814,662,910.
For reference, some selected current market values:
• Microsoft (MSFT) – $290,326,101,760
• Google (GOOG) – $206,137,075,350
• Apple (AAPL) – $163,814,662,910
• Intel (INTC) – $156,278,400,000
• IBM (IBM) – $154,610,255,550
• Hewlett-Packard (HPQ) – $133,260,024,780
• Disney (DIS) – $67,680,019,880
• Dell (DELL) – $64,241,243,920
• Sony (SNE) – $45,994,645,800
• Yahoo! (YHOO) – $40,641,873,724
• Amazon (AMZN) – $39,037,267,570
• Adobe (ADBE) – $27,031,152,680
• RealNetworks (RNWK) – $998,960,040
• Napster (NAPS) – $152,192,000
AAPL quote via NASDAQ here.
MacDailyNews Note: “I am putting a sell on Apple, the company that created the iPhone,” Laura Goldman, investment advisor, LSG Capital, May 21, 2007. AAPL closed at $111.98 that day. Apple has risen 67.9% since Goldman’s “sell” recommendation.
I love Macs as much as the next guy, but a 53 trailing P/E? The stock’s got a cash flow growth rate of nearly 40% per year and more than 30% EPS growth for the next 5 years completely priced in. Unless you think its going to grow faster than that, stay away. The company’s great, and its throwing off cash like nobody’s business, but this is all about a way-too-high multiple that makes this too pricey.
Perhaps some long term thinking needs to be applied here. For reference go to the Long Now Foundation site.
http://www.longnow.org/
(GO AAPL!!)
“Stock Guy” is–in fact–“Stock Boy” from years back, one of the most vocal morons ever to grace these pages.
FACT, “Stock Guy”: Every one of us on these pages knows at least one person (I can personally attest for five) who has been putting off buying a Mac until Leopard (along with Boot Camp) was installed on it.
The numbers Apple showed for the fourth quarter are going to look Lilliputian compared to what’s coming in Quarter 1 and beyond! And THAT we can all take to the bank.
YOU, sir, for all your supposed good intentions are little more than a Cassandra Without Credentials. You know NOTHING, and you’re just trying to assuage your guilty conscience for not buying the bejeebers out of AAPL at $50.
I spit in your general direction and make castanets out of your testicles.
Stock guy – I have to disagree with the employee overhead issue. Dell has more of a problem because they have employees who manufacture their machines. Apple farm their manufacture out overseas. Each store earned 1M more this quarter and is becoming even more profitable. IMHO the Apple Stores are an asset and not a liability and have helped Apple increase their market share and public awareness of the brand.
I agree that the stock price is pumped up. It is bound to come down, probably to 150 in the next few weeks as investors take profits.
Apple’s future is very bright. It is firing on almost all its cylinders. Macs, iPods, iPhone, iTS are performing very well. Leopard will add to those numbers. AppleTV will need a revision or two and probably some more alliances with distributors to really take off.
@Jerry T
Now now, Jerry. Just because Alabama is ranked in the bottom 5 states in terms of education is no cause for you to get your blood pressure up.
http://www.morganquitno.com/edrank.html
So, just lay back on your coach, drink your 12 pack of beer and enjoy watching NASCAR all day.
Remember Apple has a good balance sheet going for itself, over $15 billion dollars cash and no debt. They are but a very select few companies of their size to have no debt. Dell has debt.
Just remember, Apple has huge costs.
Those “huge costs” are bringing even “huger” returns.
So many high priced Apple Stores with lots of employees which Dell doesn\’t.
Apple might have a lot of retail employees but those retail employees are making money, hand over fist for Apple. Again, the “huge costs” of establishing retail outlets is bringing in more $$$ than anyone imagined.
Then they are selling much less hardware than Dell and HP per quarter.
And they are making a lot more money off the hardware then anyone else.
So that leaves small devices, like iPods, which will sell well for the holidays but after than NOTHING.
Many companies would love to sell 10 million copies of “nothing.” like Apple does with it’s iPods and they are still on track to sell 10 million iPhones.
Sure the 15 billion in cash is helping keep the stock price above average, but more than Intel? Getting close to the two giants Microsoft and Google?
Microsoft is lost and hasn’t come out with a new, successful product in years and Google is still a one-trick pony. All it’s money comes from advertising. Apple has a huge arsenal of hardware and software it is selling and keeps producing new gizmos that everyone wants to buy.
Actually Apple at a Market value 50% higher then the current value at $163,814,662,910 is still an undervaluation. Mostly because
1) Apple has no long or short term debt (No debt, no interest to drag on the bottom line.
2) The IP that Apple holds is alone worth over $163 billion
3) Apple Inc. is no longer a Computer company. Yes, it’s main core business is and will most likely be computer hardware and software.
4) Apple Inc. is priming a push into other consumer electronics markets using the iPod as it’s beachhead.
If Apple expands this line of iPhones next year to replace the 8GB with a 16GB and adds a 32GB model along with adding a 3G model next fall. Provided the iPhone SDK rules are being followed expect to see an iPhone/PDA device too with removable SD or xD memory cards.
People dont buy stock because of some magic formula. If that was true then all the stock wizards that told me to sell back at $85 would be right. They told me all the big profit had been taken. I guess they were wrong huh?
People buy stock because they T H I N K it is going up in price, simple as that. Obviously, a lot of people think Apple is going up. I do. I’m holding my shares. Wish I’d bought more back when it back slid to $113. Glad I bought what I did back when it was $13/share.
Rock On Apple, Rock On!
Some posters see the potential of Apple and some don’t. I have bet the farm on AAPL and am laughing myself silly at the stupidity of the skeptics.
Apple will be the largest company on the planet within just a few years. And this will occur not by merely extrapolating its performance on some chart, but because it has top talent, top leadership and the best business positioning, execution and plans of any company.
It is put up or shut up time. My money is on Apple. Time will tell.
So on the “AAPL is undervalued thing…”:
(1) So first off, the debt thing isn’t a big deal at all. In fact, you’d normally like companies to have a little more debt because the tax benefits of debt flow directly to equity shareholders. The fact that they’ve been continuing to stockpile cash IS a little worrysome because it indicates that AAPL might not have enough positive investments to stick its cash in, which could be a sign that the growth is slowing somewhat. But they’re still cash flow positive, which is a good sign.
(2) The IP Apple has? Great. Fantastic. Not worth $164 billion. Again, it makes great products. But these great products have to generate otherworldly growth rates for a long, sustained period of time to justify the current valuation. Otherwise, no dice.
(3) Agreed that AAPL is moving more and more into consumer electronics. But that story’s been mostly true for about 6 quarters now. Do you honestly see Apple growing at more than 35% a year on an earnings basis FOR A FIVE YEAR PERIOD? That’s more than a little nuts.
If you use crazy aggressive predictions for future EPS growth and keep the multiple fairly high at nearly 25 P/E or so, the valuation is barely justified. But those are a set of special circumstances that are very, very hard to justify.
As much as we hate Microsoft, keep in mind that from 1995-2000, during one of the most remarkable sales periods in any company’s history (when MSFT essentially put a copy of Windows and Office on almost every computer sold in the world), the company grew EPS at about a 40% growth rate. You’re asking AAPL to do that over the next 5 years if you buy the stock today. Perspective might be in order.
Apple stock is not overvalued.
Even if it pulls back again in the short term, as it is wont to do, it will increase again in the long-term.
I remember when they passed Dell, people said they were overvalued and it would pull back. And it did, but look at it now.
The same thing was said when they passed HP. Yet now it would take a significant drop to get below HP.
Besides, I think it will go up in Nov-Dec as we approach January and down after Macworld. That’s what it did the past couple years.
Stock Guy is full of tripe. And wrong on many levels.
MW: ‘fear’
@Jerry T,
with your abusive language you prove CheekyGit’s point.
Vlad,
right on. So is my money!
With a P/E ratio of about 52.5 compared with 24 for Intel and 17 for IBM? Thanks, but no.
Stockguy – you’re full of horsh*t. If you were any wiser you’d listen to the conference call(s). AAPL increased guidance for this December quarter – that’s virtually unheard of for AAPL. More importantly, AAPL is not only confident in selling 10 million phones by 2008, they calculate the iPhone will ensure at least 50% growth in AAPL over 3 years. 50% growth over 3 years (lets see, $100K down today, $337K three years from now). Buy, and don’t touch. Think longterm, dumbass.
In the past two weeks of traveling across the US, I’ve randomly met three different people with iPhones loaded with third party software. One was even hacked to work on the T-mobile net.
Apple does not yet support third party software, or ‘un-locked’ iPhones.
What does this indicate?
I believe that because Apple makes most of its profit from hardware, not software, that they have protected themselves by not supporting potentially spurious software, while selling tons of iPhones and iTouches to folks who will soup up their new machines in hundreds of different configurations. Hardcore Windows/PC people are snapping up these little ‘Trojan Macs’ and propagating the truth far and wide: Its a win-win (or Mac-Mac?) situation here, and its only really just begun.
The entire Apple catalogue of hardware/software is vertically integrated for true inter-operability. Halo effect indeed! Here comes Apple’s vision of the “digital hub life style”. All systems “GO”!
The sky’s the limit. Hang on while AAPL arcs into the stratosphere.
Wa-Hooooo!!! . . .
Apple’s forward P/E is only 29.75, so no correction is really necessary or predicatable. For a growing company, this is very reasonable.
I understand that the price will go up and down but it is going up more than it is going down. My question is “What will be next WHEN Apple passes Microsoft?”
Passing big blue was monumental. That was their target when they were working with Microsoft. Now we know that passing IBM has come and gone like a little gas after a good meal. There should be a huge party when they pass Microsoft.
Have a great day.
Apple start to produce your own processor lineup,graphics,memorys,next world: Your own Apple printer and scanner.
Sounds like a great opportunity to shut the company down and give the money back to the shareholders before reality catches up and they go bankrupt.
Pfft, $168 billion? I’m still worth more than Apple. I wipe my ass with $168 billion.
Pfft, $168 billion? That’s nothing. I go through that much in chairs.
I wipe my ass with Apple stock.
@ B. Gates
Bill your accountant called. Your mouth is writing cheques that your bank account can’t cash. Your only worth 56B.
Sorry Bill