AAPL price crushes old record, cruises past $1,000 pre-split per-share price

Posted:
in AAPL Investors edited March 28
Apple's stock price on Tuesday hit a new record of $143.80, eclipsing the $1,000 per share pre-split benchmark, and if it keeps pace for the rest of the week will beat the company's old market capitalization record.




At about 1:00 p.m. Eastern time, Apple eclipsed a $1,000 per share valuation corrected for the split. At $143.80 at the close of business on Tuesday, Apple sits only $3.62 away from breaking the old market capitalization record, briefly reached on Feb. 23, 2015.

Apple's market capitalization broke $700 billion on Feb. 14, and currently sits at $755.74 billion. Since the start of 2017, Apple's stock has climbed from $115.82 to Tuesday's high.

Other than some recent analysts' predictions about the future of Apple's stock price, it isn't clear what drove Tuesday's rally. AAPL outperformed the market, which rose only 0.6 percent on the day with moderate trading value.

A peak on March 20 was said to be on the strength of the next day's product releases, which turned out to be an inexpensive 9.7-inch iPad, a (Product)Red iPhone 7, and an iPhone SE with double the storage.

Analysts suggest that Apple's share price can climb far higher in fiscal year 2017. While some suggest Apple could climb to between $140 and $150 per share. UBS analyst Steven Milunovich said in a research note that Apple's Services arm is undervalued by investors, compared to other parts of the company, and between it and a "super cycle" in the fall involving the "iPhone 8," Apple could see prices greater than $155 per share.

Tuesday's all-time high follows a string of record-breaking trading days set over the past six weeks. The first record day of 2017 came on Feb. 13 when the stock hit a high of $133.29.

Shares climbed $135.01 a day later as Apple's market capitalization exceeded $700 billion for the first time since 2015.
«1

Comments

  • Reply 1 of 32
    SpamSandwichSpamSandwich Posts: 26,169member
    Something happened today, that's for sure. Perhaps we're entering a gibbous Moon phase or Mercury is aligned with Mars...
  • Reply 2 of 32
    DOOMED!!
    r00fus1anomeaaronj
  • Reply 3 of 32
    SpamSandwichSpamSandwich Posts: 26,169member
    DOOMED!!
    Obviously.
  • Reply 4 of 32
    tjszuchtjszuch Posts: 1unconfirmed, member
    So whats the actual reasoning behind it? anyone? cause only like 3 months ago apple was 'doomed' and going the way of the blackberry. is there any actual data and reason for this skyrocket?
    watto_cobra
  • Reply 5 of 32
    JanNLJanNL Posts: 124member
    tjszuch said:
    So whats the actual reasoning behind it? anyone? cause only like 3 months ago apple was 'doomed' and going the way of the blackberry. is there any actual data and reason for this skyrocket?
    Apple wasn't doomed, only silly analysts (and followers) thought so...
    watto_cobra
  • Reply 6 of 32
    brucemcbrucemc Posts: 1,006member
    The market moves in mysterious ways at the best of times.  These peaks happen every few years, to be followed by a pullback for similar not-so-clear reasons.  Over the last 5 years, Apple the company has operated in pretty much the same way.  6 months ago, when a lot of the negative "press" was at its peak, Apple was doing what they are doing now.

    You would like to think that some in the "analyst community" were starting to get Apple, but reality is likely more about anticipation of a super-exciting-new-form-factor for iPhone, and a bit of herd mentality (stock has momentum, so lets give it more...for now).

    Someday, maybe, Apple's P/E (ex-cash) will get to be almost as good as Walmart's...
    watto_cobra
  • Reply 7 of 32
    lkrupplkrupp Posts: 4,702member
    Apple now worth $.75 Trillion.
    watto_cobra
  • Reply 8 of 32
    dewmedewme Posts: 764member
    Maybe there's a rumor the next iPhone will be coal fired...
  • Reply 9 of 32
    chasmchasm Posts: 228member
    What? No calls for Tim Cook to resign or his head on a platter all of a sudden? :)
    magman1979watto_cobra
  • Reply 10 of 32
    radarthekatradarthekat Posts: 1,621moderator
    Let's review again how venture capitalists value a growing business.  

    Typically, product companies with growth potential are valued at 4x revenues.  Certainly Apple, with a history of innovation and profit dominance in each major market it enters and the potential to disrupt additional new markets with class-leading products, deserves a near 4x revenue multiple.  

    Service businesses, with recurring revenue streams from subscription revenue or other types of service revenue that are seen as recurring and growing, are valued at 7x revenues.  This year approximately 15-20% of Apple's revenue will be software and services.  

    It would not, therefore, be unreasonable for the company's overall valuation relative to revenue to fall somewhere between 4-4.8x.

    Apple is currently valued at 3.46x revenue.

    An expansion to 4.2x would lift the stock about 20%, to approximately $175.  At that price it's earnings ratio, base upon 2017 estimated earnings, would be a hair under 20x, a fair valuation relative to the 30x earnings multiple assigned to GOOGL, for example. 
    edited March 28 r00fus1aaronjpatchythepiratefotoformataknabijony0watto_cobra
  • Reply 11 of 32
    FatmanFatman Posts: 93member
    If you are an Apple fanboy (likely if you read these posts) Become an owner of Apple make some money in dividends - and get a piece of the profit from the dollars you spend on YOUR company's products. Would be great if they offered discounts to shareholders ... I may suggest that for next proxy.
  • Reply 12 of 32
    jungmarkjungmark Posts: 6,340member
    Fatman said:
    If you are an Apple fanboy (likely if you read these posts) Become an owner of Apple make some money in dividends - and get a piece of the profit from the dollars you spend on YOUR company's products. Would be great if they offered discounts to shareholders ... I may suggest that for next proxy.
    McD's use to offer a coupon for a free sandwich. 

    I think dividends will help pay for an Apple product. They don't need to offer a discount. 
  • Reply 13 of 32
    radarthekatradarthekat Posts: 1,621moderator
    Apple's share repurchases aren't looking too bad now, are they?  Despite the naysayers constant battering of Cook and calls for his head.
    magman1979watto_cobra
  • Reply 14 of 32
    aaronjaaronj Posts: 1,593member
    Apple's share repurchases aren't looking too bad now, are they?  Despite the naysayers constant battering of Cook and calls for his head.
    But really, what fun would it be if no one were calling for Tim's head?  I mean, this place would be like a prom ballroom 4 hours after the dance ended.  And who wants that? :)
    radarthekatwatto_cobra
  • Reply 15 of 32
    eriamjheriamjh Posts: 1,006member
    One should be as dismissive of random spikes UP in AAPL's price as one is of random drops.  

    While I still believe AAPL is undervalued as a stock and has lot's of room to grow if it were held to the same standards as other companies, I did not detect any news directly related to this jump.  

    Overall, it continues to rise slowly, but surely.  
    radarthekatwatto_cobra
  • Reply 16 of 32
    I would not be surprised to see a major dividend hike in the next quarter. That will propel the stock even further.
    watto_cobra
  • Reply 17 of 32
    I would not be surprised to see a major dividend hike in the next quarter. That will propel the stock even further.
    They do seem to have a pattern of a ~10% bump in May each year since 2013.
    watto_cobra
  • Reply 18 of 32
    palominepalomine Posts: 337member
    My theory on AAPL is that the central players (whatever that means) in the market are using Apple for pushing prices higher or lower depending what they want.  
    It's kind of obvious that it isn't Apple doing anything radically amazing lately yet the stock is rising.
    Because the big players want it that way.

  • Reply 19 of 32
    radarthekatradarthekat Posts: 1,621moderator
    palomine said:
    My theory on AAPL is that the central players (whatever that means) in the market are using Apple for pushing prices higher or lower depending what they want.  
    It's kind of obvious that it isn't Apple doing anything radically amazing lately yet the stock is rising.
    Because the big players want it that way.

    I think, rather, it's because the analysts and pundits are no longer shouting that the sky is falling on Cupertino.  The 'market' is simply no longer holding its collective foot on Apple's neck, and so price discovery, which has been artificially held in check for several years, is being freely applied.  And guess what?  Apple is actually worth, as an ongoing cash generator, a lot more than the price had been reflecting for years.   This is an upward corrective move.  
    edited March 29 staigardwatto_cobra
  • Reply 20 of 32
    sog35sog35 Posts: 12,367member
    eriamjh said:
    One should be as dismissive of random spikes UP in AAPL's price as one is of random drops.  

    While I still believe AAPL is undervalued as a stock and has lot's of room to grow if it were held to the same standards as other companies, I did not detect any news directly related to this jump.  

    Overall, it continues to rise slowly, but surely.  
    One analyst predicted a $200 share price in a couple years.

    Like I said in January, this will reach $150 this year, easy.
    watto_cobra
Sign In or Register to comment.