“Activist Investor Carl Icahn thinks Apple Inc is already worth over $1 trillion but others on Wall St. think it will take a few more years for the iPhone maker’s stock value to get there,” Noel Randewich reports for Reuters.
“With Apple’s stock market value ballooning this week beyond $700 billion, larger than Switzerland’s gross domestic product, activist investor Icahn said the technology company’s shares should be trading at $216 apiece, equivalent to a market capitalization of about $1.26 trillion,” Randewich reports. “‘It wouldn’t be outlandish for them to be at a $1 trillion market cap now,’ said Mark Mulholland, a portfolio manager whose Matthew 25 fund is among the best performing large-cap funds over the last five years. But like other portfolio managers consulted by Reuters, Mulholland believes it will more likely take two or three years to reach that level.”
“Wall Street appears sanguine in the short term,” Randewich reports. “After Apple trampled Wall Street’s expectations for quarterly earnings in January with record iPhone sales, stock market analysts increased their 12-month stock price targets. Their median average target price is now $134, which is a mere 6 percent higher than Thursday’s price and much less than what Icahn says it should be.”
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