“Apple has always been a strong and innovative company with a history of successful product launches,” Investanomics writes for SeekingAlpha.
“Now I’m not predicting that Apple will reach $10,000 anytime soon; I’m trying to open up your mind and bust a long-time investment myth,” Investanomics writes. “A stock’s share price has nothing to do with how high or low a stock can go. In fact, the share price is determined by the investors in the stock and the performance of the company itself. Let’s take a look at Berkshire Hathaway A shares (BRKA). Berkshire started trading in 1979 at $775 per share, and the company now trades at over $110,000 a share.”
Investanomics writes, “All the company did was continue its history of successfully growing its business and generating profits… Apple has had a successful track record of continuously generating profits, and I expect that to continue. At current prices, the market is discounting the future pipeline of the company.”
Much more in the full article here.
At the rate money is being printed in the US, combined with the debt and the deficit, there is every possibility that $10,000 a share looks reasonable within five or six years.
The only way the debt can be discharged is if it is devalued, since entitlement programs are untouchable. Unless Jon Huntsman gets into office, in which case reason might triumph, however unexpected this might be. Stock prices will inexorably reflect inflation as well as performance,
Don’t hold your breath howard, for the stock price, or your fantasy.
Yes but…
AAPL’s market cap weighs on its share prices in a way that BRK doesn’t; BRK is also a conglomeration of discrete companies whereas AAPL is integrated. Part of AAPL’s success is exactly because it doesn’t chase size – it’s still possible to see the entirety of its product line on a single table. It’s not about to buy See’s Candy because Tim Cook likes the way they taste!
A YAM analysis of BRK shows a kind of linear growth as it engorges itself with other companies. The same YAM analysis for AAPL (+-GIN) shows exponential growth on one side of the coin, and the external limiting forces of technology development and cultural change on the other.
The forces of tech development and cultural change define the hard ceiling. AAPL rides and to some extent drives the tech evolutionary cusp, but it can’t hop over it. At the same time, as the world migrates more of its treasure from conventional industrial production into information systems, AAPL can exploit the migration by grabbing increasingly larger pieces of an increasingly larger pie.
LATTE curves of evolving nanotechnology, AI, robotics, and biology show that AAPL is well poised to exploit their confluence. That’s when share prices could reach the stratosphere. A TOST analysis (corrected for PBAJ) of emerging markets with a BACN analysis of emerging products suggest that AAPL could potentially emerge as a kind of “super company” if it doesn’t topple over in the process. But it can’t outpace the speed of technology evolution or cultural change even with exponential development rates.
Put simply, at BRK share levels, AAPL is 30 times the size of BRK. Currently, AAPL’s revenue could spread to everyone in the U.S. buying several hundred dollars worth of AAPL product per year. Picture a BUN graph of how much of the world’s treasure would have to be allocated to AAPL for its value to grow from $400 to $10,000. Not impossible, given say Siri as the world’s personal secretary, or Siri growing robotic arms and legs. But that’s not a financial trick, it’s a technology and cultural revolution.
I suppose one could inflate one’s way out of a debt crisis, but why would we do that? Interest is minimal and inflation is nowhere to be seen. You’ve been fooled by the debt mongers. The macro problem in the US is lack of growth not overwhelming debt.
I say $10,001; am I the closest without going over?
Yes, when we’re all driving round in hover cars and a Big Mac costs $1,000.
stupid.
No… It can’t.
You doubt it? 🙂
Yes
Another fanatic analyst with extreme outlook.
The market is so volatile right now and from the look of current enviroment they can’t keep their share above $400.
Anyone remember the book “Dow 36,000”? It came out in the days of “irrational exuberance” in the stock market. 12 years later the Dow is still around 11,000. And the NASDAQ is half what it was at its peak.
Apple will grow at its own pace. And grow it will.
2 other points. BRK/A est P/E 16.78 Est PEG 3.36. AAPL Est P/E 10.87. Est PEG 0.51.
This is so silly it’s not even funny. BH-A is a unique stock in and of itself, not to mention that it’s a multi-national conglomerate that has it’s hands into quit a few different industries. Apple to orange comparison.