“During the dot-com-crazed 1990s, Cisco Systems Inc. became the world’s most valuable company. Widely expected to become the first company to hit a trillion-dollar 1 capitalization, it made it barely halfway there,” Barry Ritholtz writes for Bloomberg. “When the technology sector peaked in March 2000, Cisco had a market capitalization near $550 billion.”

“From that peak, the entire technology sector imploded. Cisco fared even worse than the Nasdaq, losing 87 percent from its zenith to its nadir. Today, some 18 years later, Cisco is worth about $221 billion; its average annual compounded returns from those lofty heights is a negative -2.17 percent per year, including reinvested dividends,” Ritholtz writes. “The world, it seems, would have to wait a while for its first true trillion-dollar market capitalization company.”

“Apple is inching toward that trillion-dollar mark (its valuation hovers around $900 billion),” Ritholtz writes. “The trend suggests that sometime this year, Apple will become America’s first trillion-dollar company. What will drive the move to a trillion dollars? Consider these four factors as key to Apple’s continued upward momentum:”

• Share repurchases
• Warren Buffett
• Index buyers
• New products

Read more in the full article here.

MacDailyNews Take: Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued.

The next ten years are going to be absolutely amazing for Apple. The company has just started to really get going!MacDailyNews, August 2, 2017

SEE ALSO:
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