Apple stock to $140; funds desperately want back in

“We are now three weeks into my prediction that Apple (AAPL) shares will reach $140 by the end of May,” Richard Saintvilus writes for Seeking Alpha.

“If it were not for the Fed and other stupid things going on in the market, which have nothing to do with Apple, AAPL stock would be at $138 by now,” Saintvilus writes. “Obviously it will take a miracle [for AAPL to reach $140 by the end of May]… But whether the stock reaches $140 by the end of May is besides the point. It’s a matter of ‘when,’ not ‘if.”

“$140 can still be taken out quick. Why? Mutual funds that foolishly bailed on AAPL, attempting to beat Apple longs to the punch by selling before the ‘stock’s demise,’ have realized their mistake,” Saintvilus writes. “These funds are now underweight the shares and are eager to get back in. ”

Read more in the full article here.


  1. The market is just a knee jerk reaction to a Fed announcement about increasing interest rates which lots of people expected.

    This pull back is just the market looking for an excuse to lower the market capitalizing, in general, on the cost of money going up slightly (and slowly). Corporate profits across the board are still at record levels and unemployment is low.

    Barring any negative nellie news out of Apple, expect the stock to start climbing in the next few days.

      1. AAPL will always get hit harder. 90% of its profits are from one device. The iPhone. It dwarfs profit from all other sections of the company. This equates to a single point of failure and high risk for investors.

  2. Huh? Because the Fed didn’t raise interest rates Apple stock is lower? That makes no sense at all. Let’s be real, these Seeking Alpha articles are dudes pulling opinions masked with some math, right out of their asses.

    1. You’re not crazy. It certainly does seem as though Apple tanks when it is upgraded. Since that’s opposite what most stocks do, it always makes me wonder what makes Apple so different. Whenever Amazon, Google or Netflix get upgraded their share prices jump. With Apple it falls. I would honestly think funds would try to get back in but Apple’s institutional ownership has fallen slightly. I just don’t get it at all. I’m sure it has to do with Wall Street’s lack of confidence in Tim Cook and I don’t know why. What else could it be?

  3. Its definitely a volatile time in stocks and not for the faint of heart. Fundamentals will win in the long term. Apple is profitable, immensely so. It’s P/E ratio is lower relative to many other stocks. I’d say Apple will go up much higher, but in the long term. The downside that APPL is part of many mutual funds is general stock fears impact the APPL price. On the other hand, if we get another spike down, it would be great to load up. I only wish they would raise their dividend which seems a bit low.

    1. Apple will never get to $1,000 per share for the simple reason that it is now on the Dow, which is weighted by share price. Should AAPL’s value become too high, it will split so as not to be overweight on the Dow.

      Not only that, but with a current value of roughly $130/share, if you divide that into $1,000 per share, you get a multiple of 7.7. If you take that and multiply that by Apple’s market cap of $769 billion, you wind of with a market cap of $5.9 trillion, which I find it hard to believe Apple will ever reach. Also, Apple’s buying back its stock, and distributing earnings in the form of dividends, will keep the company from ever achieving that valuation.

      1. So you don’t see the DOW hitting 36,000?

        And then 72,000?
        Yeah, is hard to believe.
        But, if tim had instead told stockholders he had a plan to have apple have 1 trillion dollars cash and then loan the money to the US government, T-bills, bonds, etc. and then pay stockholders from that interest, all of it, in dividend to stockholders, they may have been able to live with that.
        Whether apple sold another product or not, shareholders would have been happy. Apple’s future would have been insured for as the British say ” a thousand years”.
        If we believe the US will be around at least that long, then the stockholders would be good with that.
        7,000,000 shares times 3 dollars a share, 21 million a quarter, 84 million a year, I think tim will be ok.

  4. Apple keeps making stupid fascist changes, like the new Photos that loses functions of the old iPhoto, that frustrates the hell out of people. And there’s no help available. Maybe some Internet blog, if you’re lucky.

Reader Feedback

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