Gene Munster: Apple shares will more than double in three years

“Despite a strong start to the year, Apple is ending 2018 on something of a sour note,” Danny Vena writes for The Motley Fool. “The company hit a $1 trillion market cap in August, becoming the first U.S. company in history to achieve that benchmark. However, since hitting an all-time high in early October, shares of the iPhone maker have lost more than 25% of their value, due to fears of slowing iPhone sales and a possible trade war with China.”

“Gene Munster should be no stranger to longtime Apple investors, having covered the company since 2004,” Vena writes. “He has a bold prediction. As investors fully grasp Apple’s shift from being a hardware-centric company to being a services-focused one, Munster believes that Apple stock will reach $350 — more than double its Friday closing price of $165.48 — thereby adding nearly $1 trillion in market cap from its current level.”

“Apple’s business is one that investors don’t ‘need to sweat every quarter,’ according to Munster,” Vena writes. “Legendary investor Warren Buffett shares a similar view. In an interview earlier this year, the Oracle of Omaha said of investing in Apple: ‘Nobody buys a farm based on whether they think it’s going to rain next year or not. They buy it because they think it’s a good investment over 10 or 20 years… The idea of spending loads of time trying to guess how many iPhone X [units] are going to be sold in a given three-month period… to me, it totally misses the point.'”

Read more in the full article here.

MacDailyNews Take: From your lips, Gene, to Mr. Market’s ears!

SEE ALSO:
Morgan Stanley projects Apple’s Services revenue to grow to $100 billion by 2023 – November 29, 2018
The pessimism and hypocrisy surrounding Apple is endless – November 28, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018
Poor news curation at Bloomberg, CNBC, Reuters created misleading iPhone supply chain panic – November 19, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple: Ignore the noise – November 14, 2018

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

10 Comments

  1. Let’s hope so and think so. Right now we are entering into the bearish markets, every single stock tanks left to right. We will wait and see, if it will come true. GLTA.

    1. We are actually heading to worldwide depression, think 1929 but worse. In 2008 we had a Debt problem which was fixed by printing money and creating more Debt. Then the current worldwide debt was $140 Trillion, 10 years later we currently have $250 trillion in Debt at low interest rates. Add to this over $800 trillion in derivatives exposure thats over $1 Quadrillion its the greatest debt binge in history. FYI the GDP of the Planet is $79 Trillion

      1. Yeh this is right 2008 the Banks were too big to fail now they are too big to bail. We are going to see Stock Market crashes, Bond Crashes, Student Loan defaults large scale and auto loans and housing markets collapse worldwide. This has slready started in countries. welcome to the burst of the everything bubble, large scale Bank fauilures and Company bankruptcies Are coming

  2. Not if the corruption from China, the incompetence of Theresa May, and the corruption of Trump don’t undo the world economy before then.

    http://www.usdebtclock.org/ $66,454 debt per US citizen, 105.215% gross debt to GDP ratio is only going up, with no plan whatsoever to slow the debt ballooning. This is what really matters to the future prosperity. Instead the USA has an administration with priorities focused on maximum press coverage and loyalty oaths.

  3. This sounds like some flaky Andy Zaky slingshot theory, all over again. Every year Apple will be raising iPhone prices and getting murdered by every Android smartphone manufacturer. Android has run away with smartphone market share and Apple can hardly sell enough iPhones to please greedy investors. Look how much value Apple has lost in a couple of months. It’s just crazy. Every other quarter big investors want to dump their Apple stock. That’s just no way for loyal Apple shareholders to live happily. It’s almost difficult to remember when Apple hit that $1-trillion dollar market cap, it seems so long ago. 25% loss of value based on rumors of dropping sales. Ridiculous. How can any stock be that weak?

    I might believe in Apple but very few big investors do and that’s the killer. All their money is going to Microsoft and all the other FANG stocks. Apple will get almost nothing because big investors won’t be able to count their precious iPhone unit sales every quarter. Goodbye Apple.

    1. Apple has amassed so much money it’ll never go away but it’ll be much diminished as a brand by the time Pipeline Timmy has finished with the company.

      Consumers are waking up to the Apple price gouging on iPhones and iPads and are more unwilling to update regularly. Apple will be hoping they can get a second wind with ultra-portables when they switch Macs to ARM CPUs but realistically the iDevice surge has petered out with cheaper and better phones available elsewhere. Apple is not the brand it used to be thanks to Pipeline.

      As an Apple fanboy for the last 15 years who bought nothing but Macs, iPhones, iPad and iPods I’m just not excited by anything they produce any more and certainly not at the prices they think they can get away with.

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