Apple is bullying stock market investors

“Who is bullying the U.S. stock market? It’s popular to say that Goldman Sachs, J.P. Morgan Chase, the PPT (Plunge Protection Team) or the Federal Reserve, because all engage in shenanigans we’ll never fully know,” Simon Maierhofer writes for MarketWatch. “But they don’t bully the stock market. Apple does.”

“Apple Inc. is one of three stocks racing to become the first trillion-dollar company,” Maierhofer writes. “Apple is the only stock to be included in all three of the following: the Nasdaq 100 Index, the S&P 500 Index, and the Dow Jones Industrial Average.”

“In fact, Apple is more than just included — it rules the roost,” Maierhofer writes. “It is the biggest component of the Nasdaq 100 (11.6%), the S&P 500 (3.6%) and the Dow Jones Industrial Average (4.6%).”

Read more in the full article here.

MacDailyNews Take: Too big to fail.

5 Comments

  1. Any company can have a trillion dollar market cap if their multiplier becomes much larger than average. Apparently, Apple shareholders will never have to worry about that happening with Apple’s stock. Those few other companies on their way to that trillion dollar market cap don’t have the same pitiful P/E as Apple does.

    1. A PE ratio of 16-17 is not pitiful by any measure of the fundamentals. It predicts healthy growth. A PE ratio of 500 (cough, Amazon, cough) is detached from any kind of financial reality and is right up there with Vegas gambling, betting on which chump will stay in too long as long as it’s not you.

  2. No company exist that is too big to fail. Everything has a beginning and end. Yet, longevity…that’s a matter of much more wise choices than poor ones, something Apple excels at.

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