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.]