Apple’s Mac ascendent as stock hits new all-time record high

“Apple Inc’s profits and sales streaked past Wall Street forecasts as iPhone and Mac sales hit quarterly records, sending its shares rocketing to all-time highs on Monday,” Gabriel Madway reports for Reuters. “Sales of Mac computers — the largest single contributor to Apple’s revenue — jumped a better-than-foreseen 17 percent, but shipments of the closely watched iPhone were held back by problems in producing enough to meet demand, particularly abroad. ‘The big story is the renewed ascendancy of the Mac,’ said Barry Jaruzelski, a partner at consulting firm Booz & Co.”

“IPhone sales had been expected to steal the limelight. Yet unit sales rose 7 percent to 7.4 million, just shy of Wall Street expectations of 7.5 million units. But it was the company’s venerable Mac warhorse, which has steadily expanded market share for years, that starred. The stellar shipment numbers came just days before rival Microsoft Corp was set to unveil its latest version of Windows operating system, to be followed a day later by its own quarterly results,” Madway reports. “Mac sales hit 3.05 million in the September quarter, above average estimate for about 2.8 million. Sales of laptop units alone leapt 35 percent, at a time the global PC market is stagnant.”

“‘These are huge numbers tonight. Apple is probably the best growth story in tech, maybe one of the best growth stocks in the market. I bet this stock can go to $250 in six to nine months,’ said Jane Snorek, analyst at First American Funds,” Madway reports. “‘This makes me think Apple will have a great Christmas.'”

“‘The number of Macs sold shows that Windows 7 has not been a threat to the Apple franchise,’ said Shannon Cross of Cross Research. ‘These are phenomenal results.’ …Shares of Apple jumped 7.5 percent to above $204 in extended trading. It had closed at $189.86 on Nasdaq. The stock’s record intraday high was $202.96 on December 27, 2007,” Madway reports.

Full article here.

MacDailyNews Note: AAPL shares rose $12.54, or 6.60%, to $202.40 in after-hours trading. With 895,817,000 shares outstanding, Apple’s market value currently stands at $181,313,360,800.

[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]

31 Comments

  1. In this case, I hope Cramer’s right and it goes to $265. Probably deserves to go much higher. Doesn’t AAPL make, and bank, more money than GOOG? Didn’t they pass $550? Some stunning stuff coming from AAPL real soon, and it’s gonna make a whole lotta money.
    Buy more now.

  2. @garymac

    You cannot compare share prices of companies. The share price is a function of the total value of the company (market capitalization) and the number of shares outstanding.

    If Apple had one share outstanding, the share price would be $181,313,360,800, and if they had 181,313,360,800 shares outstanding the share price would be $1.

    AAPL and GOOG are not that far off in P/E (price/earnings) valuation, which is what you need to look at when comparing two companies. The shares of both are valued at approximately 30-35x earnings.

  3. AAPL has split twice…GOOG hasn’t. Apple has a hardware product line you can actually touch…Google doesn’t. These are two very different companies as far as where their revenue comes from.

  4. “AAPL has split twice…GOOG hasn’t. Apple has a hardware product line you can actually touch…Google doesn’t. These are two very different companies as far as where their revenue comes from.”

    The only thing that really matters is that they both make profits, and that both their profits are growing. Dell also has a product line you can touch, but I would be much more inclined to own GOOG over DELL.

  5. Google may be at $550 but you can’t look at just the stock price and compare. Gotta look at market cap. # of shares x stock price = market cap. In that regard:

    Apple = 170 billion
    Google = 174 billion

    Google has never split their shares. Apple has split many times thus has more shares.

  6. Once again, the analysts and many of the commenters here fail to take into consideration (and therefore discuss), Apple’s PILE OF CASH.

    I believe Apple has about $35B in cash equivalents now. So if Apple is worth $181B, that means even at the $202 price, Apple’s on-going business is only valued at $146,000,000,000. That is relatively cheap, even with AAPL over $200 per share.

    Plus, if Apple makes even a 3% return on investing $35B, Apple makes over ONE BILLION DOLLARS with zero effort – PURE PROFIT. (That’s more than Dell’s quarterly bottom line profit.)

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