“The curse of the $1tn ‘buy’ note,” Lex writes for Financial Times. “At the peak of the 2000 bubble, analysts believed Cisco still had plenty of price appreciation ahead. Its stranglehold on the routers and switches that powered the dotcom age could make it the first $1tn company, Credit Suisse analysts wrote. That proved the death knell; Cisco topped out at $550bn.”
“Eighteen years on, the milestone is still elusive — and further away after the sector fell sharply on Monday,” Lex writes. “Scott Galloway, a professor at New York University, in April last year backed Amazon to get there first. It was a bold call. At the time, the ecommerce company’s equity was valued at $430bn. But in less than a year, the shares rose more than 75 per cent. It was on a trajectory to win the race — until a report last week suggested Donald Trump wanted to stop its rise.”
“So who to pick? The dull answer, the biggest and cheapest of the pack: Apple. The iPhone maker got within $80bn last month,” Lex writes. “With almost $60bn of net income, it does not even require an aggressive price/earnings multiple. ”
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MacDailyNews Take: Apple.