Dream of $1 trillion valuation for Apple slips away

“Remember all the talk about Apple racing to be the first company worth $1 trillion?” Matt Krantz reports for USA Today. “Looks like the party will have to wait.”

“Shares of Apple (AAPL) are sinking along with the rest of the market. Apple’s stock is down $1.53 cents, or 1.2%, to $124.72 Friday,” Krantz reports. “But more importantly, shares have dropped $8.88 a share since peaking this year – erasing $51.7 billion in market value in just weeks.”

“That leaves Apple worth $726 billion – which makes it the most valuable in the Standard & Poor’s,” Krantz reports. “Some investors and analysts are still holding out hope for Apple’s $1 trillion dream. FBR on Thursday started covering Apple stock and outlined exactly how the company will still reach the $1 trillion level in market value.”

Read more in the full article here.

MacDailyNews Take: What Steve Jobs hath wrought is just getting started. Watch and see.

Related article:
Second analyst sees Apple worth $1 trillion – April 17, 2015

36 Comments

  1. Idiot! AAPL has been trading within a fairly right range of late. This is often a technical consolidation that may indicate an upward move. Judging by the past rise and the current lull, a move into the low 140’s might be upcoming. This guy has provided absolutely no important information to support his ‘guess’.

    1. Market cap for the past month (3/18-4/17) has ranged from 717.9B to 748.3. As of 4/17 the market cap stands at 726.6 approximately 16B lower than the first day AAPL joined the DJIA.

    2. the problem with AAPL right now is there are too many eyes on it, so every hiccup, burp, and blink creates an overreaction in the market.

      better to adjust +- for BUN, and take a longer term approach, spending the time to generate a proper EGG evaluation rather than rely on overly simplistic BACN analyses that should go the way of the bustle.

      1. another alternative modern approach is to consider the HAM level which may rectify a seemingly low level of APPT-T, which in turn can easily increase the chances of gaining a perfect OMLT trajectory. and not just in theory, as was demonstrated in the past.
        thus, a fully developed BRP can’t be too far away, which I consider a very good thing, so I disagree with the author.

    3. Apple moves ~ 1%! Alert the media! What is this jackass smoking?

      “That leaves Apple worth $726 billion – which makes it the most valuable in the Standard & Poor’s,” Krantz reports.

      “Most valuable in the Standard & Poor’s”? How about most valuable on the planet by a factor of two?

      What a complete fscking idiot!!!

  2. You’ve got to love empty articles designed 100% for click bait. I would say this guy is a moron, but he’s doing exactly what he intends to. Create vapid articles with sensational headlines and content to get page views. It’s sad that it actually works. 🙁

    As far as AAPL goes, I’m looking forward to see what it is in a year from now. 🙂

  3. The headline is inaccurate.

    1. “slips away” makes it seem like trillion is never within reach.
    2. the proper headline should state or infer that the trillion is a bit further away — OR — be another topic all together.

    Basically, another hit piece.

    We all know the numbers. The question is: rate of increase of revenue and EPS, now and in the coming year or two.

    blah blah.

    Back to Sideshow Bob.

  4. A week’s softness for Apple’s share price isn’t that big a deal. Apple is about as solid as a company can be. Time for Apple to buy back some more shares thanks to those fools who need to cover their losses for their other poor investment choices.

    I’m not greedy for Apple to reach $1T. If it does, fine. If it doesn’t, fine. When I bought most of my Apple stock back in 2004, it never occurred to me Apple would be where it is today. Sure, I think it should be valued a bit better because the company is good enough to be valued as well as its peers in the S&P 500. However, if the economy can’t support Apple reaching $1T, then it can’t be helped. I’ll still be ahead with a good company. I’ll be happy if Apple does reach $140 by the end of the year with increased dividends. Some money is better than none. I think Apple can reasonably hold the level that it’s currently at and that’s nothing to be bitter about.

    1. “Time for Apple to buy back some more shares […]” and as the outstanding share count drops, $1T moves a little farther away.

      I’m with you, Macnificent7: long term has already been good to me (as to you), so a $1T market cap might be amusing as trivia, but the long term gradual gains + dividends are making my retirement years a lot more comfortable to set up.

      Also, from ken1w (below): “racing to party time” was cute wording. 🙂

  5. If AAPL gets to $120 after demonstrating such strong demand for Apple Watch (a future source of revenue second only to iPhone), it would be a great time to exercise some of that authority to do stock buybacks. I’m sure Apple’s leadership has great confidence right now, and should demonstrate it to investors. I’ll probably do some buying myself if AAPL goes below $120. 🙂

    The “$1T” milestone has no actual meaning. It’s not like Apple is “racing” to get there, then having a “party” to celebrate.

  6. In only eight days, Apple will have a Board of Directors meeting and they will report the earnings for a quarter that was roundly forecast to be a slow down from the torrid pace of the Christmas quarter.
    As time passed in this quarter, it became apparent that sales of the iPhone were exceeding the negative expectations of Wall Street. As the cash grows, I would like to suggest that Apple needs to be careful about dangling extraordinary amounts of cash before the eyes of very poorly run governments, both here and around the world. Those governments, including our band of Tea Party idiots, think they need the cash for their spending addictions. A larger than current buy back would take away the “bait” and reduce the risk of tax increases. And a change at Seeking Alpha in the way they compensate “posters” for their usually irrelevant comments would be helpful.

    1. The “Tea Party Idiots” want to educe the size of government, and reduce spending, so how on earth does it follow they would want to raise taxes or take more from corporations?

      Instead a Tea Party member would be the one arguing that the corporate tax rate in the U.S. (one of the highest in the world) should be reduced.

    2. A real “Tea Party idiot” wants to eliminate taxes on corporations (which are simply passed along to each of us in the form of higher prices) so that people can see just how much the government is REALLY taking from your pocket.

      Because it’s amazing what people will do once they know the truth.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.