Cody Willard’s top 3 reasons why Apple shares are headed to $2000:
1. Apple’s trading at less than 8x next year’s $30 per share in earnings when you include the $50BB plus in net cash the company has.
2. The products are the highest quality out there and nobody can catch that, not google, not softee, not sony not nobody
3. The platform that Apple has locked people into is the key….almost everybody who is now using iTunes will still be using iTunes in five years, the people nurtured on iPhones 1-5 will still be using iPhones #15-20 in 10 year, and everybody using facetime will still be using facetime, and you’ll be doing so much more inside that platform/eco-system that apple’s created. And that’s the real key. And it’s not about 2011 anyway. It’s about 2021 when you live surrounded by iOS in your home, your car, your office, your gadgets.
Read more in the full article here.
In what year?
Sorry, it’s 2021. Next time I should read more carefully.
YAY!
This is getting ridiculous. Over a year ago we were told Apple shares would hit $600/share. It hasn’t even hit $400/share, and now we’re being told it’s going to go to $2K/share? Yeah, I know we had a “little” economic downturn in the last few years. Ya think that continuing economic problems might have a bit of a damper effect on share price? I’m an Apple fan, have been over two decades. But this is a bit much.
It doesn’t work that way. The down turn can change the sales and growth of the company (which has not happened to Apple) but it does not change the EPS (Earnings Per Share) or the future EPS. Apple’s stock’e EPS is extremely low and will have to move up soon. If you look at Apple’s chart, this is just one of the sideways steps for this rapidly climbing stock.
Yes, and that “little” economic damper pushed Apple down into the $80s. And yet, Apple continued to grow its revenues and earnings like gangbusters. This last quarter saw revenues grow by over 80% and profits by over 90%. How do “continuing economic problems” hold down a stock price of a company growing as fast as Apple?
It may seem “ridiculous” to you, but that’s because you are focusing upon the price target. You should focus on the stock’s fundamentals, and just let the math lead you.
Personally, I find stock splits useless, but in Apple’s case, I think a 10-1 split would help reset the market’s expectations. Like you, the market seems obsessed with the price being so high, without looking at the fundamentals which all indicate that Apple is undervalued. By dropping the price into the $35 range, I think investors will get past this mental block.
A 10 – 1 split would help the foolish investor see that a $35 stock can easily go to $70, $100 or even $200. But a $350 stock can never go to $700, $1,000 or even $2,000 in their mind. They just can’t see past the zero. IT IS THE SAME THING!!! But, covering 100 shares of a shorted $1,000 stock is much harder!
I agree. I hate listening to this kind of stuff when I see Apple stock sucking big-time. Apple has already met all of the target price conditions that were set a year ago that would put it’s share price close to $400 and despite record sales, nada. When these pundits start spouting trillion dollar market caps and such, you really have to wonder why hardly any individuals are currently investing in Apple. Seriously. I think these people are on some sort of delusion-causing medication. The more they push the stock, the more the stock drops, if that makes any sense at all.
I don’t see Netflix or Amazon being affected by any economic downturn, if that’s the case. Actually, neither is Apple, but the stock says otherwise. If anyone noticed, Apple is down again today. Bulls consider it a slight detour to $600, but I don’t know about that.
Look at Netflix’s (NFLX) P/E ratio. It’s friggin ridiculous. They’ll never meet these high expectations.
yes Markets are perpetually insane. Look at silver prices! Whats the number one use of Silver? Photography, old school film and prints developed from a lab. Is there any logical reason for a four fold increase in silver prices. Netflix is worth about 40 bucks a share tops. Amazon has missed earnings estimate for about 4 quarters in a row and margins are shrinking. Every time the stock goes up the analysts say how good it is that margins are shrinking so they can get more volume in sales! Best take margins to zero i guess.
I predict the world will end……sometime in the future.
When it hits $1,000 per share, I’m done.
Ok. Show of hands. How man people here saw Apple getting to $350 a share by 2011 back in 2003? Anybody?
I bought Apple some options back in 2003, which made me $20k, but I had no idea Apple would eventually go over $700. Yes, $700.
Back in 2003, was pre-split. Without that split, Apple would be over $700 today. So, no, I never imagined Apple going over $700.
Paid $7.49 for my first few thousand shares in 2003.
Not, but I did see something revolutionary and recognized it.
Invested my young children’s college funds ($8500 total) and never put another dime towards their college. Yeah, now worth just under $300K.
How’s that guaranteed college tuition plan working for everyone? Oh, they forgot to inform you about the “fees”………ah……..401k anyone?????
$2000? That’s bold but I remember about five years ago someone predicting $600. Maybe now not so bold….
I bought shares in January 2003 after claiming to my family that Apple would hit $400 someday. Almost there.
Are we even sure this guy is talking in US dollars??? loool
“They don’t get AAPL”. How many times do I see that?
Why is price seeming to stagnate?
How good do Apple’s numbers have to be to continue the climb?
You might want to read up on the darling stock of the 1920’s stock bubble. It was Radio Corporation of America.
Invest based upon knowledge and verifiable facts- not hype, idle speculation or fanboism.
How is Apple in a stock “bubble”? Are you related to Erin Burnett?
People are looking at Apple’s fundamentals and pointing out that Apple is way undervalued.
The last bubble, the dotcom bubble occurred because people were focused upon top-line sales and not bottom-line profits. Apple has BOTH top-line sales and bottom-line profits. This past quarter Apple grew profits by over 90%. Apple earned $6,000,000,000. Do you know how many companies earn that much money in a quarter? Less than a handful. When the next Fortune 500 list comes out in 2012, it’ll show Apple as either #2 or #3 in profits. Only ExxonMobil will have earned more than Apple. A bubble stock doesn’t have the profits to support the shareprice. Apple has the profits, and given its ridiculous growth rate, over 90% last quarter, it’s easy to see how people like Willard can project $2000 in 10 years. It doesn’t mean Apple will get there, but it’s not totally out of the ballpark.
When the entire U.S. Dollar bubble collapses, and the entire U.S. Debt bubble collapses, and the entire stock market bubble collapses (yes, it is still in a bubble), it will take down Apple with hit… regardless of how good Apple is doing. Everything is inextricably linked. Read the book “Aftershock” and other books like it.
No, but I wouldn’t mind having relations with Ms Burnett…
I have owned Apple stock since it was less than $10/share & my only regret is that I did not buy more- sooner. That said, $2k/share is nonsense unless there is an awful lot of inflation.
At some point, Apple’s phones will run into the “PC problem” where the bulk of buyers are satisfied with what they have and stop upgrading with every refresh. The market will eventually saturate and sustain at a lower sales rate. Same for the iPad.
Apple is growing and will continue to grow, but size changes everything. Elephants rarely tap-dance and when Mr Jobs leaves the building I seriously doubt anyone else will command the authority to run Apple like the flat model of management they currently have. Bloat will creep in.
I’m not a pessimist, but $2,000/share?
the guy who wrote the article is such a blatant tool, I would very much appreciate it if MDN did not link to his articles again. all he does is try to pump up sales of his little investing reports. he has nothing substantive to contribute.
@Chris
I meant to say that, too. Every thing Mr. Willard writes ends by trying to sell you his reports. I long ago stopped reading him.
i’m long aapl but I think Apple needs to do some things to get the stock price going up . It’s silly that the stock is sort of frozen as sales and income have skyrocketed.
1) aapl needs to declare dividends. No I’m not interested so much in the income that gives but having dividends will get aapl listed in hundreds of dividend funds. Apple’s marketcap is already so large it needs billions in new investment to push the stock up and that means big funds (most aapl is held by funds now). ETFs etc tracking the nasdaq has already reduced aapl holdings due to the recent re-balancing.
2) stock split (this is psychological but might help)
3) more PR with the investment community. I have no proof but I suspect that big fund investors (many are probably old enough to remember Apple’s early history) have bought into the myths of ‘no Steve Jobs Apple will fall, Android is PC vs Mac again ‘ etc. Apple has to explain rigorously why Android is not Mac vs PC again and Apple’s steps to protect it’s future without Jobs (e.g like the ‘Apple U’ which codifies Steve Jobs philosophy internally).
Big investment managers have also been taught in business school that big cap stocks can NOT grow significantly (Apple is beating the conventional wisdom but not communicating it properly). Apple doesn’t like to talk but I think it’s time to re-assure the investment community.
(I know that many here have vaster investment knowledge than me. so share your thoughts)
I would just like to emphasize that this stock scenario painted by Cody Willard is NEVER EVER EVER EVER EVER going to happen, and I will bet all my money on that.
In 1998-2008 I was buying and fixing houses. Had I taken $20,000 and put it into Apple back then, I would be worth millions now. I’m never betting against Apple again.
“top 3 reasons why Apple shares are headed to $2000…”
And yet today Apple shares are dropping. Apple just had yet another record month of sales and stunningly brilliant products, and the stock price is falling. But so is the S&P 500.
The fact is that the stock market is full of dimwit day-trading dweebs who buy and sell according to EMOTION as opposed to rational thought. Having a bad day? Sell your Apple stock. You’ll feel so much better. 😕
No wonder the USA elects PoliTards and destroyed its own economy. 💡
Commenting about what a stock does on one single day is a good reason for you never to play the stock market. It’s down less than 1%. If it goes up 1% tomorrow will you repost claiming how wonderful it is? No. And you shouldn’t
What you want to look for are trends. It takes more than a single day to start a trend. Apple overall is trending higher. It plateaus at times before it starts another run. The state of the world has investors edgy. Im not surprised it’s been quiet lately.
Lots of things could happen to knock the price down: Major disruptions in the supply chain or something terrible happening to Steve could spook the market, but affect primarily Apple. But a major financial disruption as US debt heads toward $20 billion (roughly four years away at the rate we’re going) and people stop funding the deficit, a collapse of the Euro, war in the ME pushing oil over $200 per barrel, or something worse could affect everything. Including Apple. By then we’ll have more to worry about than the price of our favorite stock.
I think you meant 20 TRILLION there. 20 billion is peanuts to the govt, which is really a part of the problem when you think about it.
AAPL had such a meteoric rise when it came out of its GFC slump that there had to be a correction. At least marking time is better than heading south.
Folks, none of you get it. When the stock market completely collapses by 80% in the next few years, ALL stocks will go down with it — both good stocks like Apple and bad stocks as well. The government debt bubble is about to burst, the US dollar’s value is about to plummet, and everything is going down with it, INCLUDING good stocks like Apple. Get out now if you’ve already made a profit in Apple.
if only it can move right now because the stock is flat
The overall value of predictions is bound to change some time in the future.
Apple isn’t getting the high P/E multiple it deserves (based in its growth rate) because most investors don’t believe the company can continue expanding sales and earnings as it has in recent years.
Holding down expectations:
1- Worries about the health of Steve Jobs
2- Memories of Apple’s long term decline and near bankruptcy when it was solely a computer maker, despite the fact that it produced a superior product
3- Continuing decreases in iPod sales — the breakthrough product that saved Apple a decade ago
4- Rapid expansion in the market share of Android phones, and concerns that Androids will erode iPhone sales
5- Proliferation of tablets from other companies
6- The widely predicted ‘delay’ in the introduction of iPhone5
7- Fears that iPad sales will slow due to production bottlenecks, partly because of the earthquake in Japan
8- Lack of imagination among investors who doubt that Apple can produce another blockbuster product
Now, I don’t find this a persuasive argument, but that’s why I’m an AAPL buyer when many others are selling. Portfolio managers say that if they’re too pessimistic, they can always get back into the stock after the news improves … a surge which would push the stock far higher.
Even good stocks climb a “wall of worry.” That’s what Apple is doing now. If you’re a believer, the lagging stock price in recent months is good news: you have an opportunity to buy a great investment at a substantial discount.
From the comments above, it’s apparent that many who claim to believe in the Apple story are all talk and no action. If you think that you’re right and the market is wrong, why aren’t you buying rather than whining?