Apple shares may be worth $1111, but they won’t get there anytime soon

“Brian White has become somewhat notorious over the past year as Apple’s (AAPL) most bullish analyst,” Adam Levine-Weinberg writes for Seeking Alpha. “Back in April, White took the audacious step of setting a $1,111 price target on the shares. Apple shares have traded in a rough range of $525-$705 since that time, so the $1,111 price target assumes that the stock will (approximately) double in the next year.”

“By viewing Apple as a growth company and assigning a valuation accordingly, it is not difficult to justify an $1,111 price target (which would give Apple an approximately $1 trillion market capitalization),” Levine-Weinberg writes. “However, it is one thing to state that Apple is worth $1 trillion, and another to claim that the market will soon come to this conclusion.”

Levine-Weinberg writes, “Over the past few months, an increasing number of hedge fund managers and other prominent investors have made highly public bearish calls on Apple. While sell-side analysts overwhelmingly have “buy” ratings on Apple, the investment community as a whole is not about to accord Apple a 20X earnings multiple. As a result, the stock price is likely to appreciate in proportion to earnings growth.”

Read more in the full article here.

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

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25 Comments

    1. Stock price (of an individual stock) is completely irrelevant for comparison. It is stock price TIMES the number shares outstanding that provides that actual market value of the company. And Apple is already worth about FIVE times Amazon, in terms of “market cap.”

  1. they won’t get there anytime soon? it’s so funny. sorry but it will never happen. as I said before, the game has been changed. unlikely Steve era, Apple can’t keep up the same pace. apple will be ended up with similar situation like MS. I know that apple fanboys don’t want to believe it. but it will be happened. apple is over.

    1. Edward, who gave you permission to leave your cesspool today? Please stay there and keep your arid stench with you! We are tired of cleaning up for you around here! D=======))))

  2. I guess not with Obamanomics keeping the economy in stagnation for the next 4 years (at LEAST). How the hell did this guy get re-elected with damn near 8% unemployment? ACORN must still be on the loose.

    1. That’s because the other guy had the same plan as the previous guy… To read “My Pet Goat” during a national crisis and lose 750,000 jobs a month… Yeah that’s the guy I want. A guy that creates jobs, in China!!

      1. I guess you are easily forgetful, it’s easy to criticize in hindsight over a decade later. Things were much different then, the best selling cell phone looked like something you get in a cereal box today… The iPod hasn’t even been released yet! Not to mention the infrastructure system that GW inherited from past administrations was woefully outdated and inadequately equipped to handle the 9/11 attacks. On the economy, get real buddy, your numbers are a snap shot of a one month period under GW, while conveniently ignoring the other 95 months.

        1. And I guess your memory is as short as you claim Slamm’s is – his numbers are of the last few months of the Bush Administration, not a randomly selected example. The economy crashed on his watch, remember? Slamm’s point is that we made a smart decision to elect a man with a better plan for moving out of a recession than a man whose plan is the same policies that got us here in the first place. (Policies that were in place just four years ago not just ten years…)

  3. Each time Apple increases quarterly revenue, Wall Street compresses the P/E that much more. Apple is going nowhere fast because Apple isn’t taking any risks like other companies are doing. Whatever growth Apple gets is going to be done very slowly using internal methods while rival companies are growing by feasting on acquisitions. Two months ago, many shareholders were sure Apple would reach $750 by the end of the year. Now, Apple is so damn far from that goal, it’s just unlikely to happen. Even $650 a share seems rather far away at this point.

    The supposed trillion dollar company is barely past the halfway point and moving at a snail’s pace when it should be sprinting like a jackrabbit. That huge pile of reserve cash is merely collecting so much dust. The extremely critical supply chain is as weak as it ever was. I’m not privy to Apple’s long-term plans and I’m only calling it as I see it. I’m only saying that if Jeff Bezos knows how to keep investors buying stock in a money-losing company, then Apple should certainly be able to do it.

    1. Yes. And American investors are just so weak and powerless to stop the goal posts being moved every which way but true.
      No matter.
      Apple will keep scoring anyway, no matter what the market may do and despite all the naysayings of the uninformed, but highly opinionated bozos.

    2. Well, you won’t see $1111 by the end of this year. And you won’t see $750 by the end of this year either. And it’s not a conspiracy. It’s simply the stock market and you can’t fight the stock market. It’s not like everybody out there hates AAPL. Quite the contrary, there are too many people out there who are in love with AAPL. Never ever fall in love with a stock. You will lose money. It’s an investment it’s not your best buddy. Treat it as an investment. Don’t make excuses for it, because it’s just a company. Reports state that Apple will have a low yield for iPad minis and iMac screens going forward until 2013. That’s not good. The stock market does not like that and they should not like that. And whether or not people like it, Apple will not be the darling going forward as it has been previously. There is just too much negativity, real and imagined, associated with Apple. I also believe that Apple should do something with that huge pile of cash. But Steve jobs didn’t want to spend it so it just grew and grew. We’ll have to see if Tim Cook can do something with it. That much cash is a real waste. It seems to me that not doing something with that much cash is mismanagement. Perhaps they can acquire companies that can help them with their services. Apple does not do services well. And I agree with the Amazon.com comparison too. But remember, Amazon.com basically has no competition. Best Buy will fall very soon. There’s no one around to really challenge Amazon.com. But yes, they have a high multiple. Again, never fight the street. Do not become emotional. You will lose money. Apple on the other hand does have competition. The much hated Samsung is just one competitor. Apple will never be in the dominating position that Amazon.com is in. It just will never happen. So be happy if Apple sees $700 in the next three months. And be very, very happy if Apple sees $600 by years end. I hope it does reach $700 sooner than later but be very cautious. Brian White threw out $1111 back in April to stand out from other analysts. And he does. I love all my Apple stuff. I will be ordering a 27 inch iMac Friday at 12:01 AM. I am really, really looking forward to the new Mac pros next year. I make my living with them and they are over due. So I certainly want Apple to succeed. But I’m not in love with Apple as an investment. I can’t, it’s my money.

  4. Yea, Apple should take risks with acquisions like Autonomy and Motorola Ann’s p,ss away billions. If valuation keeps compressing, it might just go private. Still plenty of growth left. There Arab 6 plue billion people without iPads. At least a billion of that number is an addressable market.

    1. 3
      L48 really is just talking out of his short stock position. LOL.
      Yep, Apple is Doomed. It’s better to sell stock in a company that makes a penny on the dollar sale than 45 cents on the dollar. Yep. Nuff said.

  5. It will happen sooner, rather than later, because the 2008-2009 financial crisis showed that Apple can keep making money (a lot of it), even in very poor economic conditions. And that was only with iPod, Mac, and iPhone (that was still fairly new). Now, Apple has all that (with a mature iPhone) PLUS iPad, and probably “something completely new” in 2013.

    In that 2008-2009 period, the bears pushed AAPL down from above $200 to under $80. But AAPL rose steadily from there and it was above $200 again in less than one year, because Apple proved that it can continue to have record-breaking quarters in a “bad economy.” Think about it… AAPL had dipped below $80 a share just FOUR years ago. Today, Apple’s CASH is worth MORE than the entire company just FOUR years ago. AAPL was (and will be again) the eventual destination of the investors’ flight to quality.

    In comparison, getting to $1111 seems like a walk in the park.

    1. Bingo!

      I vividly remember that drop and telling my investors to sit down and shut their pie holes. They are thanking me to this day. 🙂 imagine where AAPL would be in a thriving economy. ????? Yeah! ponder that for a moment.

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