“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:
Bank of America predicts Apple market value to surge to $1.1 trillion – January 17, 2018
Apple leads race to become world’s first trillion-dollar company – January 3, 2018
Apple is primed to become the first trillion-dollar company – November 24, 2017
Apple: First trillion dollar baby? – August 4, 2017
Why Apple’s market cap is going to $2 trillion – August 2, 2017
Analyst: Apple to become world’s first trillion dollar company within 12 months – July 7, 2017
How Apple’s market value gets to $1 trillion – May 23, 2017
Gene Munster: Why Apple deserves an historic trillion-dollar valuation – May 22, 2017
Analyst sees Apple’s market value at $1 trillion in a year – May 8, 2017
Apple’s path to first-ever $1 trillion market cap – March 7, 2017
Apple on track to become first ever $1 trillion company – February 17, 2017
Bernstein: Apple could be first to $1 trillion market value, propelled by services revenue – Cramer agrees – May 18, 2016
Apple would be worth $1 trillion if market valued it like Steve Jobs-run company – January 4, 2016
Analyst: How Apple’s market value hits $1 trillion in 2016 – November 10, 2015
Annual iPhone Upgrade Program could power Apple to become world’s first $1 trillion company – September 16, 2015
Analyst: Apple at $1 trillion in a year – May 11, 2015
Dream of $1 trillion valuation for Apple slips away – April 17, 2015
Second analyst sees Apple worth $1 trillion – April 17, 2015
Here’s how Apple gets to $1 trillion valuation in just 12 months – March 23, 2015
Apple eyes trillion-dollar market cap – February 24, 2015
Apple’s stock swoon just a blip on its way to being worth $1 trillion – December 2, 2014
Trillion-dollar baby: Can Apple go where company has gone before? – November 24, 2014
Is Apple about to be the first $1 trillion company? Carl Icahn says yes – November 18, 2014
Omega’s Einhorn: Apple’s market value could hit $1 trillion – November 18, 2014
Apple’s market value primed to go to $1 trillion, creating largest company in history – July 3, 2012
Apple at $1,111 per share with a $1 trillion market cap in the next year – April 26, 2012
Piper Jaffray ups Apple price target to $910; sees world’s first trillion-dollar market cap – April 3, 2012
How Apple can reach $2 trillion market value in 2016 – March 16, 2012
Apple: $1 trillion market cap inevitable? – February 21, 2012
Could Apple become world’s first trillion-dollar company? – January 28, 2012
Altucher: Apple will become a trillion-dollar company; $1,000 a share – May 3, 2011
Apple could become first $1 trillion company in as little as 36 months – April 14, 2011
Not really at its trading at 16X market cap to Profits already, how much higher are people hoping it will go.
The Stock Market will collapse way before that happens and drop by 40% like in 2007. Its just the mainstream media will not publish that things are bad, hey debt levels are 10X worse then 2007!!!
Also the US debt is actually $67 Trillion which is crazy considering the GDP of the planet is $79 Trillion
although I agree that debt etc is out of control and stock investing is risky..
– in 2007 a lot stocks that are hurt bad had higher P.Es
The stocks that were strong (had inherent value) like Apple bounced back in a couple of years.
– 40% drop? Apple has gone UP that amount in less than 2 years. So it’ll fall to it’s value 2 years ago. So for long term investors it’s just a 2 year set back , and that’s a worse case scenario. But realistically because it’s not a fake on-paper no earnings company like so many in the the dot.com bubble of 2000, i.e Apple actually has earnings and 200 billion in the bank.
The P.E is actually very low (about half Google and Microsoft and a tiny fraction of Netflix and Amazon (!) ) it’ll bounce back just like in 2009 on.
At 16 P.E it means Apple’s earnings will be able to buy back all it’s stock at the current price in 16 years which is very short, if share price falls they can buyback even FASTER, (so the last few investors will have a bigger share of Apples tens of billions cash flow). Also P.Es shrink if earnings grow and Apple has already said it projects next quarter’s revenue growth will be more than 10% from year ago (Apple has never missed it’s own guidance for many many quarters)
– Although like I said investing is inherently risky Apple (like many including Warren Buffet has said) due to it’s extremely low price is one of the safest stocks to own.
seriously is NOT INVESTING a SOLUTION?
how are you going to pay for RETIREMENT?
If you retire at 70 and live to 90, and want a 50,000 a year existence (remember inflation pressure, 50k won’t be much years in the future ), you will need a MILLION saved up, a LOT MORE if you have medical issues etc . 401s, pension plans including government ones are all invested in stocks and corporate bonds etc.
if governments and economies collapse as you are suggesting and if it a total apocalypse and it is PERMANENT (i.e companies and stocks won’t bounce back) then there won’t even be welfare or social services. These are all funded by DEBT and taxes (generated by corporations and employees).
if things are bad but NOT permanent then aapl will bounce back.
(if things are permanent and there will never be a recovery, then you might as well dig a bunker and buy canned beans)
(personally when shares went kablooie in 2007, I kept buying aapl at a discount. My aapl gain from that time are near 10x. I completely paid off a house and have no debt. by investing I am probably better position in a downturn than not investing — even for buying those canned beans )
Not to mention Deutche Bank is broke, so it Italy and its banks.
If Deutche Bank collapses with its $47 Trillion in derivatives it will take 30 Banks with it worldwide. Think Lehman Brothers but on a much much massive scale.
If Italy defaults thats the end of the Eurozone as we know it and remember all Banks are interlinked
Well…you’re partially right on some comments here but not quite correct on the outcomes. The $47 trillion is a notional figure…it boils down to something much, much smaller. I’d bet $1 T is probably still too high a final number after netting. I’m not saying it wouldn’t be significant..as you’re correct it would be…but it is at least somewhat less scary a prospect. It would still impact many banks though by how much is less clear than you imply.
Agree that if Italy collapses then the Eurozone is dead but you’re missing out on the fact that most of the European banks offloaded the worst of their problems on their governments in the past couple of years. Bank failures in Europe won’t be as crushing to bank shareholders now given that most of the risk is being borne by European taxpayers. The public really is getting screwed over there worst than they realize.
The laws were changed in europe recently by the ECB, if your a shareholder or having savings in a Bank that collapses you are liable under new bail in laws and you are unlikley to get your money back.
Italys debt is €2.2 trillion goverment Debt and €400 billion is the bad debts the banks are carrying. In regards to Detuche Bank the German goverment has already said no to any support if things go wrong.
My worry is the US Debt $21 Trillion but real figure $67 Trillion. The only reason the US has got so rich is because it prints money and then sells it as Treasury Bonds. The Petro Dollar is on its last legs now that China is created the Petro Yuan, selling oil and gas for Gold.
So how is this debt going to be paid!!! The US Goverments income is $3 Trillion with €500 billion in interest payments alone by the time it has paid for everything it is in the red and has to borrow more averaging 500-900 billion per year.
Look at countries that borrowed too much Cyprus, Greece etc soon the Dollar value will be low and keep dropping as countires and Banks stop buying Treasury Bonds. Hedge funds and banks are ringing alarm bells already
Yes indeed. And how strange that is, given This site’s oft-stated view that Tim Cook is little more than a knave and a fool. You look so foolish, Steve Jack,praising the products and the profitability of this great company, while decrying its leadership.
it seems worth noting here, that of the “four factors as key to Apple’s continued upward momentum”
what should be the most important factor of them all, which is to say “new products”
is listed dead last, preceded by other factors that, in essence artificially “manipulate” the market rather than “drive” it
i would feel much more comfortable if new and innovative products was perceived by wall street investors as the primary driving force of apples success,
not how much money mr. apple is willing to spend to goose the value of its stock,
nor the public pronouncements of a major stockholder of a larger acquitsition, (or investment, if you prefer) in apple stock
or even index stocks, because all of those things are essentially artificial drivers that can be reversed. on a dime,
the development and sale of evermore quality and innovative products is the kind of thing you can reliably depend upon to drive business and sales, and income and stock valuations.
that is, after all, how steve jobs brought apple back from near death to a thriving and growing business that tim cook inherited.
When Apple becomes a Trillion dollar company it’ll allow the U.S. to join some other countries in having one. Despite the title Apple won’t be the first in the world. Give it a few years and the U.S. could boast a handful of them.
BIG DAMN DEAL! They need to get to work and get the products out there in the market place working better. One that I know of right now is macOS High Sierra’s AFPS. It’s a total nightmare as it stands…….
Plus, fire Tim Cook as CEO!!!!!!! If you don’t like what I said about Timmy Cook, you can kiss my A$$!!!!!!!
Warren Buffet is buying a lot of Apple because he has little else to buy. The huge run up in stocks last year was driven mostly by a small handful of listings.
Someone tell the stock because it’s going in the wrong way,
I don’t think it’s Apple’s fault, it’s a global stock market drop. It might be something to do with somebody introducing a protectionist trading levy with the inevitability of retaliation and likelihood of trading wars, further increasing global instability.
History suggest that trade wars are not good, nor easily won.
I would believe when I see it happened. Feel like the fool of last time when the media screaming of super cycle then it didn’t happen. Such ridiculous.
Saudia Arabia oil company is valued at $3 Trillion
Not really as the Dutch East India Company in 1602 was actally valued at $7.2 Trillion in todays money. So no Apple will not be the first trillion dollar company.