“Given the trajectory of Apple’s stock it’s probably fair to start pondering how high, in theory, it could go,” Matt Krantz reports for USA Today.
“Hitting the $1 trillion mark for market value would be an accomplishment of historic proportions, as no company has ever done it before,” Krantz reports. “The most valuable company of all time was Microsoft, which was worth $604 billion in 2000, says Howard Silverblatt of S&P.”
MacDailyNews Take: Ironically, Microsoft did that thanks to Apple and a badly-written contract signed by unprepared sugared water salesbozo.
“What about Apple? Could it be different this time around?” Krantz wonders. “To be worth $1 trillion, shares of Apple would need to hit $1,085 a share based on the company’s current 921.3 million shares outstanding.”
“Can that happen? Let’s first take a look at how fast the stock has risen the past five years. Apple stock rose 18% in 2006, 133% in 2007, it fell 56% in 2008, but then added 147% in 09 and 53% in 2010,” Krantz reports. “Taking the geometric mean, we get a rough average increase of 59% a year.”
Krantz reports, “If the average 59% annual growth rate of Apple’s stock continues, the company could be worth $1 trillion in as little as three years. That’s the optimistic case. If you use the analysts more conservative 23% price target for 2011 and apply that going into the future, then Apple will hit $1 trillion in six years.”
Read more in the full article here.
Buy AAPL now!
Yay! $1 billion worth of MacBooks, iPhones, and iPads for everyone! 😀
PLEASE. This guy has no idea how the stock market works, I can’t believe they would even publish his nonsense. It is virtually impossible for that scenario to happen.
Nonsense yes. Apple won’t hit a trillion in the time frame. He is just playing with numbers that’s it. This is actually a good thing sorta from a marketing point of view to sell the bs that your company is doing that good especially in a down economic world. Its all pure speculation if we lived in a perfect stock world is all he was writing.
I won’t happen in that time frame based on what we know today, but what if in the next 18 months Apple launches…
A smart Apple Television
A streaming moving service to compete with Netflix
An Apple owned 4G phone network.
It’s not far fetched they could launch any or all of those products or services. If that happened a trillion dollar market cap could easily be within their sights.
That second one was supposed to be MOVIE service, not MOVING (stupid thumbs). I don’t see them in the furniture hauling business anytime soon.
Look out Mayflower, we’re gunnin’ for ya!
A trillion here, a trillion there, and pretty soon you’re talking real money. Just don’t tell President Obama, he’s looking to confiscate trillions to pay for ObamaCare.
Sounds pretty paranoid, Mr. “Optimist!”
Sounds like your glass is half empty, Mr. Optimist. Maybe you should be Mr. Whiner.
The Dept of Defense briefed the President this morning…
They told President Obama that 2 Brazilian soldiers had been killed in Afghanistan.
To everyone’s surprise, he collapsed onto his desk, head in his hands, visibly shaken, almost in tears.
Finally, he composed himself and asked, ‘Just how many is a brazilian?’
This is not surprising, since he apparently has no understanding of a billion or trillion, either.
I heard that exact same joke 5 years ago about Bush.
Well that is almost impossible but does show there is much more growth ahead. Oh no, more good news, time to tanks the stock….again.
Take the analysts estimates?£@>!
F$CK NO – read this…http://aaplmodel.blogspot.com/2011/04/which-analysts-are-biggest-sandbaggers.html
then they can afford to take less profit and start building factories in this country, otherwise jobs & co. are chumps
American labor has priced itself out of the job market. It has nothing to do with Apple.
American labor deserves the chump label.
Are you going to take the pay cut? Your wife? your brother? You don’t mind if your standard of living collapses? If America starts living within it’s means, it can turn the economy aroudn no problem. It worked in Canada. Mid-nineties Canada deficit was proportional to what’s happening now in the States. Politicians had the courage to tell the public that they were cutting back and they did as they promised. Within 5 years they were running surpluses and investment had returned. Fixed! Done! The public was supportive and happy it was done. I think if the American public is given some credit they would happily do the same.
Ha Ha! I am Canadian. I get paid by the day as a consultant. I am obscenely overpaid by American labor standards but I’m worth every penny.
When you’re looking at Chinese and Brazilian labor rates take into account that those workers get food, lodging and entertainment. They have no need for transportation. Cut those costs and how much money per hour would an American laborer really need?
The US$ is dropping so fast Apple doesn’t have to grow to hit the trillion dollar mark. Apple just has to wait for the dollar to drop far enough so that Apple’s foreign exchange covers the difference.
This is the kind of nonsensical “market goes only one way” bullshit that caused the Wall St. Crash in 1929.
It’s hogwash.
Apple doesn’t live in a vacuum: it’s subject to external supplier pricing, forex, political upheaval and force majeure like earthquakes and volcanoes.
Even a major disease pandemic would alter the way consumers behave.
Also, the higher the price goes, the harder it is to achieve the same percentage rise.