or Connect
AppleInsider › Forums › Investors › AAPL Investors › Apple shares crack $300 en-route to new all-time high
New Posts  All Forums:Forum Nav:

Apple shares crack $300 en-route to new all-time high

post #1 of 109
Thread Starter 
Apple stock rose roughly 1% in pre-marketed trading Wednesday to a new all-time high, surpassing the $300 milestone for the first time in the company's history.

Shares of the Mac and iPhone maker have been on a tear in recent weeks, rising more than 25% since late August when the stock sat at just over $240.

The Cupertino-based company became the world's second largest corporation in perceived market value late last month after shares hit $290, boosting its market cap to $265.8 billion, ahead of PetroChina's $265.5 billion.

Wednesday's early gains have since pushed the company's cap north of $275 billion, placing it roughly $55 billion behind Exxon-Mobil, the largest company in the world, which was valued at $329.44 billion when the markets closed Tuesday.

Despite the surge, financial experts say the company isn't showing any signs of slowing down. A poll by Thompson / First Call of financial institutions who offer coverage of Apple reveals the mean price target on its shares currently sits at $350, with one firm placing a target on the gadget maker as high as $430.

Consensus expectations are that shares will continue to appreciate in the short term, especially as Apple prepares to report results from its fourth fiscal quarter of 2010 next Monday, which will include the first full quarter of iPhone 4 sales.

On average, analysts expect the company to report per-share earnings north of $4.00 for the three-month period ending September on revenues of approximately $18.76 billion.



Recent market research data also indicates that Apple continues to hit on all cylinders, demonstrating strength in all of its core business segments as the lucrative holiday shopping season rapidly approaches.

In particular, the company is expected to see a boost from its fledgeling tablet business, with one analyst estimating that sales of iPads are already contributing more than $3 billion in revenue per quarter after being on the market just six months.

For a detailed look inside Apple's fundamentals and where the company's share price may be heading, please see AppleInsider's two-part series Apple $400:

Apple $400: A look at Apples fundamentals, Part I
Apple $400: A look at Apple's fundamentals, Part II
post #2 of 109
Where's Andy Zaky? I'd rather read his analysis.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #3 of 109
My head still hurts to think that the company started by the two Steves in a garage and that was struggling so badly in the 90s is now the second most valuable company IN THE WORLD!

- Jasen.
post #4 of 109
We're not the cool guys anymore... you realize that, right?

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply
post #5 of 109
took the market longenough to figure out Apple was worth over 300 at least...

PC means personal computer.  

i have processing issues, mostly trying to get my ideas into speech and text.

if i say something confusing please tell me!

Reply

PC means personal computer.  

i have processing issues, mostly trying to get my ideas into speech and text.

if i say something confusing please tell me!

Reply
post #6 of 109
It is as if investors haven't realized that Microsoft has already burried them in the mobile sector.
Progress is a comfortable disease
--e.e.c.
Reply
Progress is a comfortable disease
--e.e.c.
Reply
post #7 of 109
Congrats Apple

One thought he was invincible... the other thought he could fly.

They were both wrong.

Reply

One thought he was invincible... the other thought he could fly.

They were both wrong.

Reply
post #8 of 109
Just wait till Windows Phone 7 is released, that'll put a dampener on the share price.

Oh, wait....
My Android phone is the worst phone I've ever owned.
Reply
My Android phone is the worst phone I've ever owned.
Reply
post #9 of 109
When are we going to get a stock split???
post #10 of 109
Any guesses where they will be after the dust settles on the earnings reports?

From Fortune.CNN.com:
Unaffiliated Analysts\t Revenue\tEPS
Robert Paul Leitao, Apple Finance Board\t21.49\t4.70
Nicolae Mihalache, Traderhood\t 20.95\t4.98
Daniel Tello, Deagol's AAPL Model\t 20.56\t4.73
Horace Dediu, Asymco\t 20.50\t5.00
Alexis Cabot, Apple Finance Board\t 20.41\t4.76
Turley Muller, Financial Alchemist\t 20.31\t4.61
Jeff Fosberg, Apple Finance Board\t 20.01\t4.79
Dennis Hildebrand, Apple's Gold\t 19.53\t4.40
Andy Zaky, Bullish Cross\t 19.11\t4.45

If Apple gets anywhere close to $5.00 EPS, we should see a good boost...
post #11 of 109
Quote:
Originally Posted by pondosinatra View Post

When are we going to get a stock split???

Why do you want a stock split? It won't change anything.
post #12 of 109
Quote:
Originally Posted by cameronj View Post

Why do you want a stock split? It won't change anything.

If stock splits do nothing then why do they exist in the first place?
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #13 of 109
It does feel good to finally be vindicated after all those years of telling everyone that Apple was a killer company.
My brother asked about the stock a few years ago and I told him to buy.
He did at $75. Then he sold it all at $190. Not bad for a year, but an extra $110 per share for keeping it another year would have been better.
I still have my shares that I bought at $50...
Go Apple!
post #14 of 109
Quote:
Originally Posted by cameronj View Post

Why do you want a stock split? It won't change anything.

Why is this so often stated as if it's clever to point out there share value remains the same? People ask this question because it is known that it boosts sales of stocks as they are perceived to be at a more affordable level AAPL has split in the past it will no doubt split again in the future.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #15 of 109
Quote:
Originally Posted by pondosinatra View Post

When are we going to get a stock split???

The price per stock is arbitrary, so a stock split is as meaningless as the fact that it "broke $300" for the first time in the company's history. Apple could have done a 1-to-100 reverse split ten years ago and had a stock price in the stratosphere. Who cares?

The interesting thing is their total valuation continues to climb and is STILL seen as undervalued by most analysts.
post #16 of 109
Quote:
Originally Posted by pondosinatra View Post

When are we going to get a stock split???

I have suspected for a while that Google has set a precedent in allowing the pps to rise high without splitting and it has become a badge of honor in high tech companies. I may be totally wrong but it just seems that way to me. I feel far more people would buy AAPL if it were split. Think of all those high school kids with $100 to invest after Christmas for example.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #17 of 109
Quote:
Originally Posted by solipsism View Post

If stock splits do nothing then why do they exist in the first place?

They allow broader ownership of a stock - if every share cost $10,000 no one could buy it. But splitting a stock from $300 to $150 only means an average person will buy 10 instead of 5 shares. No difference.
post #18 of 109
Quote:
Originally Posted by digitalclips View Post

Why is this so often stated as if it's clever to point out there share value remains the same? People ask this question because it is known that it boosts sales of stocks as they are perceived to be at a more affordable level AAPL has split in the past it will no doubt split again in the future.

It is so often stated because inevitably someone else will come and say "it is known that it boosts sales of stocks" which is total BS.
post #19 of 109
Quote:
Originally Posted by digitalclips View Post

I have suspected for a while that Google has set a precedent in allowing the pps to rise high without splitting and it has become a badge of honor in high tech companies. I may be totally wrong but it just seems that way to me. I feel far more people would buy AAPL if it were split. Think of all those high school kids with $100 to invest after Christmas for example.

You do realize that for every share purchased, that share is also sold, right? So one person buying a share doesn't increase the amount of shares held by people.
post #20 of 109
Quote:
Originally Posted by Booga View Post

The price per stock is arbitrary, so a stock split is as meaningless as the fact that it "broke $300" for the first time in the company's history. Apple could have done a 1-to-100 reverse split ten years ago and had a stock price in the stratosphere. Who cares?

The interesting thing is their total valuation continues to climb and is STILL seen as undervalued by most analysts.

Last Stock Split. 02/28/05
I agree it is undervalued. Way undervalued!
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #21 of 109
Quote:
Originally Posted by solipsism View Post

If stock splits do nothing then why do they exist in the first place?

Some companies like to keep their share prices within a certain price range and will split the stock to so. They will also do a reverse split and combine shares to raise the share price. Companies like at&t have traditionally kept their share prices within a range that makes it possible for the small investor to buy in. A lot of trading houses won't take an order for less than 100 shares so you'd need $30,000 to buy into Apple right now. On the other end of the spectrum you have Berkshire/Hathaway trading today at $125,000.00 per share! So there are many reason for a company to split or combine shares, or not.
post #22 of 109
Quote:
Originally Posted by cameronj View Post

Why do you want a stock split? It won't change anything.

Untrue.

$300 will not buy you a share of a $301-priced stock, but it will buy you a lot of $30 shares. Stock splits increase liquidity and results in increased trade activity. This makes the stock more attractive to index funds and institutional investors.

This is one reason why Warren Buffett endorsed and got a 50-to-1 split of Class B shares of Berkshire Hathaway. (The other reason was purportedly to get Burlington Northern shareholders a stake in the company.) Because of the split and increase in liquidity, Berkshire Hathaway was added to the S&P 500 (and thus a slew of index funds).

The market capitalization indeed remains the same after a split, but the stock is not the same.
post #23 of 109
I shall now quietly weep as I contemplate the 1,000 shares of Apple stock that I sold at 27...pre-split.
post #24 of 109
The remarkable thing is that Apple has achieved this great success in the worst recession in 80 years. And they've achieved it in spite of the fact that they are frequently perceived as being overpriced. Even though I'm a fan of the company and have owned the stock on and off for years, even I thought that Apple was going to suffer big time during the recession.

We can all (except for the fanboys) claim that Apple makes a lot of bad decisions or has a bad attitude. But the fact is that they've been firing on all cylinders for a very long time in ways that virtually no other company has been able to achieve.

The question for the future is whether their arrogance will eventually harm them and whether they can stay far enough ahead of the pack as other companies have been able to copy/emulate their technology faster and faster. It makes me laugh when the UI on almost every other smartphone looks like a copy of the iPhone.
post #25 of 109
Quote:
Originally Posted by cameronj View Post

You do realize that for every share purchased, that share is also sold, right? So one person buying a share doesn't increase the amount of shares held by people.

I repeat my point again and again ... a stock split helps boost demand.
\

"A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed.

A stock split can also result in a stock price increase following the decrease immediately after the split. Since many small investors think the stock is now more affordable and buy the stock, they end up boosting demand and drive up prices. Another reason for the price increase is that a stock split provides a signal to the market that the company's share price has been increasing and people assume this growth will continue in the future, and again, lift demand and prices."

From Investopedia web site.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #26 of 109
Quote:
Originally Posted by NomadMac View Post

I shall now quietly weep as I contemplate the 1,000 shares of Apple stock that I sold at 27...pre-split.

It took a lot of guts to admit that... but I still couldn't help but laugh out loud when I read it. Sorry.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #27 of 109
If only we had listened to the guy who, when it was at $130, was screaming that it would go to 80. Who was that again? g3pro maybe?

And I wouldn't mind a split since it would allow for more flexibility in buying and selling shares.
post #28 of 109
Quote:
Originally Posted by NomadMac View Post

I shall now quietly weep as I contemplate the 1,000 shares of Apple stock that I sold at 27...pre-split.

OMG , I bought those shares from you! I bought at 27. What a coincidence eh?

Just kidding.. I bought at 37 grrrrr.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #29 of 109
edit: Pipped by several posters.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #30 of 109
Congrats Apple!
Imagine if we were in a good economy...
post #31 of 109
Quote:
Originally Posted by cameronj View Post

It is so often stated because inevitably someone else will come and say "it is known that it boosts sales of stocks" which is total BS.

LOL, you don't give in easily do you. The facts seem to disagree with you.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #32 of 109
Quote:
Originally Posted by solipsism View Post

edit: Pipped by several posters.

So now we have a bumpy, up and down ride to 400. What's your best guess... 12 months?
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #33 of 109
Quote:
Originally Posted by solipsism View Post

If stock splits do nothing then why do they exist in the first place?

There are lots of things that exist which are 'neutral mutations.'

For example, two $5 bills as well as a $10 bill! Or, my appendix.
post #34 of 109
Quote:
Originally Posted by lkrupp View Post

Some companies like to keep their share prices within a certain price range and will split the stock to so. They will also do a reverse split and combine shares to raise the share price. Companies like at&t have traditionally kept their share prices within a range that makes it possible for the small investor to buy in. A lot of trading houses won't take an order for less than 100 shares so you'd need $30,000 to buy into Apple right now. On the other end of the spectrum you have Berkshire/Hathaway trading today at $125,000.00 per share! So there are many reason for a company to split or combine shares, or not.

That is what I was getting at with my query. it doesnt change the value of the stock you own in and of itself, but for some reason this seems to get interpreted as it has no benefit at all.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #35 of 109
Quote:
Originally Posted by Zoolook View Post

We're not the cool guys anymore... you realize that, right?

Speak for yourself.
Personally I don't think there's much cooler than success.
post #36 of 109
Quote:
Originally Posted by zoetmb View Post

We can all (except for the fanboys) claim that Apple makes a lot of bad decisions or has a bad attitude.
The question for the future is whether their arrogance will eventually harm them and whether they can stay far enough ahead of the pack as other companies have been able to copy/emulate their technology faster and faster.

No. "We" can't "all" say that without being labeled a"fanboy". How arrogant of you.

By definition if Apple is where it is today it's because since Steve came back they have not made "a lot of bad decisions".

Apple doesn't have a bad attitude and is not arrogant, they are just confident in their views and strategies. That's a big difference. And obviously given where they are, they are right on the mark.
post #37 of 109
Quote:
Originally Posted by Booga View Post

The price per stock is arbitrary, so a stock split is as meaningless as the fact that it "broke $300" for the first time in the company's history. Apple could have done a 1-to-100 reverse split ten years ago and had a stock price in the stratosphere. Who cares?

The interesting thing is their total valuation continues to climb and is STILL seen as undervalued by most analysts.

It is not 'arbitrary' when benchmarked appropriately. Against, say, the $10 (or so) that it was a decade ago. There's huge information content in a statement such as "It trades for $300 now v. $10 ten yeas ago".
post #38 of 109
Quote:
Originally Posted by GQB View Post

Speak for yourself.
Personally I don't think there's much cooler than success.

Thanks to Apple i can afford to pay people to tell me how cool I am.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
Reply
post #39 of 109
Quote:
Originally Posted by cameronj View Post

They allow broader ownership of a stock - if every share cost $10,000 no one could buy it. But splitting a stock from $300 to $150 only means an average person will buy 10 instead of 5 shares. No difference.

I think its really only an issue for small investors who want to get small lots, and can't get even one share at tremendously high prices.
post #40 of 109
Quote:
Originally Posted by solipsism View Post

That is what I was getting at with my query. it doesn’t change the value of the stock you own in and of itself, but for some reason this seems to get interpreted as it has no benefit at all.

It is amazing, a quick scan of many Apple blogs and all are having the exact same argument ...

Team A: It is mathematically the same ... no point ... doesn't change anything.

Team B: Many, many examples of actual stock splits showing huge gains in buying interest and positive results.


Team A seems fixated on a simple arithmetical argument which is not actually connected to the reality of the specific discussion, i.e. 2 x $5 = $10 so it is pointless.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: AAPL Investors
AppleInsider › Forums › Investors › AAPL Investors › Apple shares crack $300 en-route to new all-time high