Can Tim Cook grow Apple to a trillion?

“Apple just followed up its record fourth quarter profits, and the 74.5 million iPhones they sold last quarter, by becoming the first American company with a market value above $700 billion,” Joe Belfiglio reports for Yahoo Finance.

“Yahoo Finance Editor-in-Chief Aaron Task says Apple’s CEO Tim Cook deserves a lot of the credit,” Belfiglio reports. “Apple detractors also thought consumers in China wouldn’t buy pricey iPhones, Cook proved them wrong on that as well. Apple’s revenue in China grew an astounding 70% last quarter to $16.1 billion. Cook credits solid iPhone 6 sales in China as one of the biggest reasons his company is thriving.”

Belfiglio reports, “As far as Apple’s potential to reach a trillion dollar value, Task thinks the verdict is still out on that. ‘It’s still a big jump from here. You can see it from here but its still a long way away. The watch would have to be a phenomenal product. They would have to finally come up with a TV product that is a mass-market consumer product. You can see it in the distance, I don’t know if they can get there.'”

Read more in the full article here.

MacDailyNews Take: Give Apple a realistic P/E ratio and it’s already a trillion dollar company.


    1. As Apple’s size as a percentage of the overall market continues to grow, its stock price will be more and more constrained by broader market movements, particularly by the movement of money into and out of the stock market. Interest rate and foreign exchange fluctuations will drive Apple’s share price simply because people are moving money between one financial instrument and another.

      1. Use this to your advantage.

        If Apple is undervalued that means the capital return has an unusually high return you won’t get anywhere else. So even if Apple stopped growing, investors could still get unusually high compounding returns (by reinvesting their dividends).

    2. If you adjust AAPL’s EGG curve +- for BACN, SAMN graphs all show higher stock prices near term.

      I’m pretty sure the so-called “experts” who take the time to review JAM and BUN coefficients would arrive at the same conclusion.

  1. Perhaps the Law of Large Numbers should be rewritten to say that no really successful, extremely large company will ever be valued correctly because analsyts are too stupid to see the reality in front of their faces.

  2. Y E S ! ! ! ! !

    Plus. MDN … u nailed it :

    Amzn.. Loss for most part .. PE 800
    Just imagine apple at 1/10 th of that pe ….80. Or 1/40th of that pe

    Or more realistically give it googles pe of 25 ( pps =184)
    apple will be 1trillion +
    Today !

  3. I gotta admit I’m iffy about the watch. After that comes…eyewear. Then bracelets, necklaces. Then the magic decoder ring.
    And eventually dildos and buttplugs; the iSteve and the iJobs, respectively. One size fits all, if you will.
    The stock soars in giddy prospect.

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