Wedbush analyst, and noted Apple bull, Daniel Ives predicts that the Cupertino Colossus still has plenty of headroom. In a note to clients last week, Ives made this bold prediction: “We believe the path to Apple hitting $3 trillion in market cap is now firmly on track over the next year.”
In this video clip from Motley Fool Live, recorded on Jan. 28, “The Wrap” host Jason Hall and Fool.com contributors Danny Vena and Dan Caplinger discuss the catalysts that could drive Apple shares higher and whether the stock will reach this ambitious watermark over the coming year.
Jason Hall: Let’s do a little over, under action here… Danny Vena, are you taking the over or the under on Apple’s stock price being 26% higher in a year?
Danny Vena: we’re going to see a lot of iPhones purchased over the next couple of years. I think the more iPhones there are, the more services business is going to grow. You put those two things alone together, I think you get more than 26% upside over the coming 12 months. So I’m going to say over.
Dan Caplinger: I’m going under… In order for Apple to become a $3 trillion company, the value of its outstanding shares needs to go up by a total of 26%. One of the things that you said, “hey, that means the share price has to go up.” But actually, I think that share price is going to have to go out more than that and that’s because Apple’s buying backup boatload of shares to the tune of, I just looked it up, $80 billion last year.
Hall: So to add that much market cap guys, it’s got to add a Berkshire Hathaway-and-a-half… I’m going to take the under here. I’m going to take the under, it’s going to go up 25.5%.
MacDailyNews Take: Apple’s market value will hit $3 trillion by the end of 2022, barring unforeseen circumstances which, with 2020 as an example, are always a possibility. Of course, with that, we’re now covered if AAPL manages to do it in 2021. 😉