Trillion-dollar baby: Can Apple go where company has gone before?

“Is Wall Street finally get on board with the world’s most valuable company again?” Mark Rogowsky asks for Forbes.

“Over the past several weeks, at least five analysts have upgraded price targets on Apple,” Rogowsky reports. “In the meantime, the company has seen its shares reach an all-time high of $117.57 before closing out [last] week at $116.31. That price gives Apple a market capitalization of $680 billion — more than Microsoft, Amazon, Netflix and Twitter combined… Can Apple be the first trillion-dollar company?”

“Consider that Apple has spent $70 billion buying back its own stock over the past couple of years and the market cap record it has attained is all the more impressive. The reason is simple math: It takes a higher stock price when multiplied by fewer shares to get the same total,” Rogowsky reports. “It’s important to realize that Apple bought a lot of its stock back at far lower prices than the company trades for today. That’s mostly good news for shareholders but also serves to depress the market cap.”

Read more in the full article here.

15 Comments

  1. It’s great that aapl is finally getting to move on up. If we are really luck it will hit $130 before the brokers cash in.
    The stock is beginning to take in more institutional money which will increase the price more.
    Still a trillion dollar valuation is $170 a share. Feasible if the Apple Watch is a big success and the iPhones continue to drive the market through the first half of 2015.
    But I would really expect some market chicanery before that. Some group or other will want to play around with the stock after convincing their clients to pour in their retirement savings into appl whilst it is on the rise.

    1. Mostly irrelevant (unless you sell at a low point). The “market chicanery” works in BOTH directions. Apple fans notice it more when it is downward, because upward is agreeable. AAPL will reach the highest possible point (for the then current conditions) and then the lowest possible point (for the then current conditions). Rinse and repeat. On AVERAGE, AAPL (the stock) will go up if Apple (the company) is performing well. On average, AAPL’s price will be what it should be…

      Long-term investors need not worry about any real or imagined manipulations.

  2. If a company stock doubles every five years it’s an amazing buy. Apple has quadrupled the last 5 years. It’s not IF but WHEN Apple will hit the $trillion mark in market cap, barring some unforeseen disaster with the world economy and Apple just becoming something different than they’ve been since 1998 and the original iMac.

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