Apple stock has posted impressive performance in 2023. This be just the beginning of a long climb, Daniel Martins for TheStreet who goes on to explain what could send the share price higher by 200% to $500.
Apple stock has had one of its strongest starts to a year. In Q1, the share price climbed 27%, which represents an annualized pace of 160%. For reference, AAPL’s third best year ever was 151% in 1999.
For the share price to climb to $500, it would need to return a cumulative 200% from current levels.
History might not repeat, but it often rhymes…
I believe that AAPL investors might need to be patient and keep a time horizon of longer than 12 months if they want to see the share price reach $500.
If Apple stock continues to produce median annual returns of 24% going forward, as it has since the early 1980s, getting to $500 would take about five years.
Of course, if nominal share price matters, stock splits should be taken into account. Apple has announced splits five times in the past four decades. It is likely that, before reaching $500, the Cupertino company would split the stock again, bringing the share price down…
Implied here is my belief that a split-adjusted $500 is a matter of when and how, not if.
MacDailyNews Take: From Daniel’s lips to Mr. Market’s ears!
Apple’s stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Well let AAPL reaches to $200 a share first, if it can before talking about $500.
It barely broke $180 in early Jan. 2022, hitting highs in the $170s over the past 18 months. I’ll believe $200+ when I see it, let alone $500. Like always, I expect AAPL to hit a new high, and then shortly thereafter to be pummeled by world events that tank the entire market. What exactly is supposed to propel 200% growth in the coming few years? $3000 Reality One headsets? The Apple Car specter? Growth in India? Apple TV+? Short of everyone and their mother piling into AAPL as a refuge in the gathering storm, I don’t see it. Prove me wrong Tim.
Maybe medical device integration such as glucose monitoring, or hearing aids now that they are allowed to be sold OTC and you no longer need a prescription. Along with a growth in services, and corporate sales?
Apple Card and its new Savings account with 4.15% interest is going to be huge,
if this happens it’s early retirement for me
Let’s hope your dreams come true. 😃🙏
I think that would put APPL at a 7.9 Trillion dollar market cap. do we really think AAPL will be valued over 2 trillion higher then the GDP of Japan or Germeny ?
No. Apple will be taking millions of shares off the table via buybacks each quarter.
Exactly. Amazing how Wall Street still has not factored in all the buybacks already made. Drive me crazy.
AAPL is currently buying back about 18 billion per quarter. Only 72 billion/year. At the current rate it will take over 10 years to buy back under 1 trillion. The article says Apple will be valued at almost 8 Trillion in under 5 years. So who thinks Apple with grow 5 trillion in the next 5 years ?
What are you talking about ? Wall Street factors in the buybacks in the stock price. 169.68/share MKT cap 2.68 trillion