“With Apple currently only representing 3% of cell phones and 4% of computers worldwide, Cramer said this is only the beginning of a huge move for the company. Cramer said he expects to see the iPhone dominate the cell phone market, just as the iPod did with portable MP3 players,” Rutt reports. “Apple currently commands a 70% market share in the portable music market.”
“Given the huge potential at Apple, Cramer said he’s raising his price target from $264 a share to $300 a share,” Rutt reports.
“He said investors should be willing to pay one times the growth rate for a high quality growth company like Apple,” Rutt reports. “That translates to 30 times Apple’s estimated earnings of $13 a share, or $390 a share. Cramer said since everyone would think he’s nuts to suggest $390 a share, he’s using a conservative price target of just $300 a share.”
Full article here.
@critic, thanks for the clarification.
I’m still wary of these kind of pronouncements. The last time I heard them was when AAPL was last around $200, and it seemed the only way was up. Then it dove to $120 (and this was pre-GFC).
It was this kind of crazy talk and expectations that helped Apple fall from near $200 a share to less than $100 – what just over a year ago?
Not that I would want to be short on Apple right now… but I’m not too sure how long I will stay in my long position.
Have we forgotten Cramer vs. Stewart?
http://uk.video.yahoo.com/watch/4678845/12505201
@critic
The underlying financial disaster was the reason that the bottom fell out of AAPL. Market sentiment? LOL!
Can’t…stop…laughing….
re: Cramer/AAPL
Even a broken clock is right twice a day
One key issue many people are forgetting is that Apple is no longer beholden to the twice-yearly Macworld schedule. This will make a _huge_ difference is how and when Apple make announcements. They can make a one-two punch like this week, essentially dwarfing the news of Microsoft’s Windows 7 release this week, for example.
It’s my humble belief that with this new scheduling freedom that Apple will no longer be the whipping boy of Wall Street going forward and the stock will continue to rise and have _much_ less volatility. Wall Street can no longer complain as much about the disappointing rumors post MacWorld, just be pleasantly surprised, quarter after quarter, with how Apple is doing, and the great products they are selling.
Mike
Boulder, Colorado
@ John C. Randolph
“I’m sure that AAPL will be higher than $300 pretty soon”
How sure? How soon?
Wonder.