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Record day pushes Apple stock to nearly a half-trillion dollars in value [u]

post #1 of 88
Thread Starter 
With Apple's iPad media event now official, the company's stock was sent to new heights on Tuesday, propelling its total market capitalization to nearly $500 billion.

Following the release of invitations to its March 7 event on Tuesday, Apple crossed the $535 mark in the afternoon. That was enough to push its market cap to more than $498 billion dollars. AAPL stock closed the day up $9.65, or 1.84 percent, within spitting distance of $500 billion.

For comparison, Exxon Mobile Corporation, a company with which Apple was neck-and-neck in terms of market cap for months, was worth $411 billion as of Tuesday afternoon, or nearly $90 billion less than Apple.

Earlier this month, Apple blew past a market capitalization of $456 billion, which at the time was equal to the combined market cap of its rivals Microsoft and Google. Apple's upward trajectory has continued since the company reported its best quarter ever, earning $13.06 billion on sales of 37 million iPhones, 15 million iPads and 5.2 million Macs during the holidays of 2011.

Apple first surpassed Microsoft in May of 2010, when each company had a market cap of around $222 billion. In less than two years, Apple's market value has more than doubled, while on Tuesday Microsoft's market cap was a little more than half that of Apple's, at $267 billion.




Though Apple's stock hit new bests on Thursday, many analysts expect that it will go much higher over the coming weeks and months. Gene Munster with Piper Jaffray has maintained a price target of $670, Robert Cihra of Evercore has a projected price of $650, and a $600 price target is shared by Mike Abramsky of RBC Capital Markets and Chris Whitmore of Deutsche Bank.

Update: Apple has hit the half-trillion dollar mark in after hours trading, pushing the stock's price past its 52-week high to $536.39 as of 6:03PM EST.

[ View article on AppleInsider ]
post #2 of 88
Darn! I can't buy stock since it doesn't want to come down a little!
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post #3 of 88
I continue to enjoy being long on Apple.
post #4 of 88
God, I love Capitalism.

And low capital gains taxes...
post #5 of 88
I can't believe $500 now looks like a steal in retrospect..
post #6 of 88
Quote:
Originally Posted by bloggerblog View Post

Darn! I can't buy stock since it doesn't want to come down a little!

The worst thing to do is wait. If you wait, you might encounter a pull back, but the stock might be higher when that occurs, so you've gained nothing. I've got people asking me for advice on a regular basis, and I always tell them to do it NOW, and to not listen to their broker or financial advisor. When they do listen to them, they almost always get the; "Sure, we can do that, once it pulls back to $---". But it never does, and then you're chasing the new high.

If you want to play, but not pop for the full amount, or go long, you can always go with options. But you have to really understand that. It's complex. I no longer bother.
post #7 of 88
It's interesting that Apple's iPhone stock app has the same close price for Apple at $535.41 but shows the market cap being $499.2 billion. Percentage-wise it's not a huge difference, but one of the market cap figures is off by $1.01 billion and that's not nothing.

Wish I'd forgotten that it's smart to diversify when I bought more Apple, Exxon and Yahoo in early 2009 and put it all in Apple at $91 instead. ūüė•
post #8 of 88
*deleted*
post #9 of 88
Quote:
Originally Posted by gwmac View Post

Really wish I had sold at $525 a week or so ago and bought back in the $490's soon after. I wonder if this is another opportunity to sell at $535 and buy back again. Anyone else thinking it might push back to around $500?

It does always seem to drop a little after event day.
post #10 of 88
Quote:
Originally Posted by Slurpy View Post

I can't believe $500 now looks like a steal in retrospect..

Heck, the day the iPhone 4S was announced (October 4), the stock drooped down as low as $354.24 before closing at $372.50.

+50% in less than five months is not bad.

After hours trading has pushed AAPL over the half-trillion market cap threshold.

post #11 of 88
Quote:
Originally Posted by gwmac View Post

Really wish I had sold at $525 a week or so ago and bought back in the $490's soon after. I wonder if this is another opportunity to sell at $535 and buy back again. Anyone else thinking it might push back to around $500?

You're in the wrong boards.

You want the day-trader forums.
post #12 of 88
does anyone know what the highest market capitalization ever achieved by a corporation is? It looks like Exxon got up to ~510+ in late 2007, and I saw some references to PetroChina in late 2007 that I could not substantiate.... I think AAPL is close to having the highest market cap ever achieved, but not sure....
post #13 of 88
guys Apple's market cap already passed the $500B mark in after hours trading!

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post #14 of 88
Quote:
Originally Posted by FriedLobster View Post

guys Apple's market cap already passed the $500B mark in after hours trading!

For that the price must get $536,87



post #15 of 88
Quote:
Originally Posted by Steps View Post

does anyone know what the highest market capitalization ever achieved by a corporation is? It looks like Exxon got up to ~510+ in late 2007, and I saw some references to PetroChina in late 2007 that I could not substantiate.... I think AAPL is close to having the highest market cap ever achieved, but not sure....

PetroChina crossed an implied $1 trillion in value in 2007, but that was because Chinese stock markets were on a bubble-ish tear at that time, the stock had just done an IPO, and the float was very small (<5%, I think). It is trading in the mid-$200Bs now.... (There were similar run-ups for Cisco and Micrsoft; their P/E ratios made no sense. Unlike that for Apple, which is still only ~15x).

The question to ask is: Could Apple be the world's first sustainably, reliably trillion dollar company?

(For the record, I think it's unlikely. But $750B is certainly in the realm of possibility).
post #16 of 88
Quote:
Originally Posted by FriedLobster View Post

guys Apple's market cap already passed the $500B mark in after hours trading!


post #17 of 88
Quote:
Originally Posted by Trillot View Post

For that the price must get $536,87




Both Yahoo Finance and Google Finance say that AAPL has 932.37M shares outstanding.

At the risk of sounding nitpicky, that would say $536.27, not $536.87.....
post #18 of 88
Quote:
Originally Posted by anantksundaram View Post

PetroChina crossed an implied $1 trillion in value in 2007, but that was because Chinese stock markets were on a bubble-ish tear at that time, the stock had just done an IPO, and the float was very small (<5%, I think). It is trading in the mid-$200Bs now.... (There were similar run-ups for Cisco and Micrsoft; their P/E ratios made no sense. Unlike that for Apple, which is still only ~15x).

The question to ask is: Could Apple be the world's first sustainably, reliably trillion dollar company?

(For the record, I think it's unlikely. But $750B is certainly in the realm of possibility).

You don't think Apple can ever cross $750B or just not this year? If they keep growing only at 20% for a few more years $1 trillion valuation seems easily attainable and sustainable.
post #19 of 88
Quote:
Originally Posted by anantksundaram View Post

PetroChina crossed an implied $1 trillion in value in 2007, but that was because Chinese stock markets were on a bubble-ish tear at that time, the stock had just done an IPO, and the float was very small (<5%, I think). It is trading in the mid-$200Bs now.... (There were similar run-ups for Cisco and Micrsoft; their P/E ratios made no sense. Unlike that for Apple, which is still only ~15x).

The question to ask is: Could Apple be the world's first sustainably, reliably trillion dollar company?

(For the record, I think it's unlikely. But $750B is certainly in the realm of possibility).

Im just curious why you think a 1 trillion dollar market cap is "unlikely"... If aapl grows at even a modest 20% per year (notice modest for aapl is incredible for any other company), then in 5 years they would have an estimated EPS of about 87. All it takes is a PE of 11.5 to get them to about 1 trillion...

Or lets try this, say aapl continues to range in the PE of about 15. What kind of earnings will get them to 1 trillion dollar market cap? About $66 EPS... Thats about 88% growth from where they are currently. Over 5 years that would be a compounded growth of about 14 percent per year... Do you think they can do that? I kind of think they can blow this away as usual... They will be the worlds first multi-trillion dollar company IMO. They will cross the trillion dollar mark in 2 years...
post #20 of 88
Quote:
Originally Posted by melgross View Post

The worst thing to do is wait. If you wait, you might encounter a pull back, but the stock might be higher when that occurs, so you've gained nothing. I've got people asking me for advice on a regular basis, and I always tell them to do it NOW, and to not listen to their broker or financial advisor. When they do listen to them, they almost always get the; "Sure, we can do that, once it pulls back to $---". But it never does, and then you're chasing the new high.

If you want to play, but not pop for the full amount, or go long, you can always go with options. But you have to really understand that. It's complex. I no longer bother.

So right. What the heck if it dips a while later, it will come back and go higher. 'Now' is the only time with AAPL
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Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
post #21 of 88
Quote:
Originally Posted by ko024 View Post

Im just curious why you think a 1 trillion dollar market cap is "unlikely"... If aapl grows at even a modest 20% per year (notice modest for aapl is incredible for any other company), then in 5 years they would have an estimated EPS of about 87. All it takes is a PE of 11.5 to get them to about 1 trillion...

Or lets try this, say aapl continues to range in the PE of about 15. What kind of earnings will get them to 1 trillion dollar market cap? About $66 EPS... Thats about 88% growth from where they are currently. Over 5 years that would be a compounded growth of about 14 percent per year... Do you think they can do that? I kind of think they can blow this away as usual... They will be the worlds first multi-trillion dollar company IMO. They will cross the trillion dollar mark in 2 years...

I do think it is likely, but then I am biased
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Reply
post #22 of 88
Quote:
Originally Posted by chadmatic View Post

It does always seem to drop a little after event day.

I seem to recall a few times it's gone up.


Quote:
Originally Posted by anantksundaram View Post

PetroChina crossed an implied $1 trillion in value in 2007, but that was because Chinese stock markets were on a bubble-ish tear at that time, the stock had just done an IPO, and the float was very small (<5%, I think). It is trading in the mid-$200Bs now.... (There were similar run-ups for Cisco and Micrsoft; their P/E ratios made no sense. Unlike that for Apple, which is still only ~15x).

The question to ask is: Could Apple be the world's first sustainably, reliably trillion dollar company?

(For the record, I think it's unlikely. But $750B is certainly in the realm of possibility).

Don't forget to qualify that with "publicly traded company". Saudi Aramco had an estimated value well over 1/2 trillion a decade ago and I read some really high claims of $7 trillion but with how much Exxon has grown I don't think it's completely unrealistic.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #23 of 88
Quote:
Originally Posted by focher View Post

I continue to enjoy being long on Apple.

I'm with you there, sir. Been a happy investor in AAPL since $72/share, and only continue to increase my holdings every month.

Best stock I have ever held, by far.
post #24 of 88
Quote:
Originally Posted by SolipsismX View Post

I seem to recall a few times it's gone up.

Apple should call it the iPad 2 S, and then the stock will drop 5%, just like what happened with the iPhone 4 S. It doesn't matter what great features the new iPad has. It'll look almost the same and if the name is also the same, that is enough for certain people to be disappointed.
post #25 of 88
Quote:
Originally Posted by FriedLobster View Post

guys Apple's market cap already passed the $500B mark in after hours trading!

Now is the time to mortgage the house and put all of one's assets into Apple. Buy on margin. It will never go down.

Apple is a slam dunk to go up MUCH more from here. There is no real possibility of any decline.

Anybody with any scrap of value should put all of it into AAPL.
post #26 of 88
Quote:
Originally Posted by Apple ][ View Post

Apple should call it the iPad 2 S, and then the stock will drop 5%, just like what happened with the iPhone 4 S. It doesn't matter what new great features the new iPad has. It'll look almost the same and if the name is also the same, that is enough for certain people to be disappointed.

That seems to be how things go psychologically. No matter what's been changed if you don't change the numerical value of the name it must be a failure.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #27 of 88
Just a little play on Bill Clinton's famous saying.

Seriously, though, just before earnings, Apple's P/E had hit a P/E of 15.7. And even now, after the biggest rally in years, it still is down around 15.25. That's how huge Apple's earnings were last quarter.
post #28 of 88
Quote:
Originally Posted by Slurpy View Post

I can't believe $500 now looks like a steal in retrospect..

makes the $188 price point when I first thought about buying apple and didn't seems like a garage sale price.
post #29 of 88
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

Now is the time to mortgage the house and put all of one's assets into Apple. Buy on margin. It will never go down.

Apple is a slam dunk to go up MUCH more from here. There is no real possibility of any decline.

Anybody with any scrap of value should put all of it into AAPL.


Likely, makes more sense than selling one's AAPL to invest in real estate.

Let's see... A home purchased for $500,000 in 2003 is worth $250,000 today...

That same $500,000 invested in AAPL in 2003 is worth $26,000,000 and change today!


Oops... Make that $52,000,000 and change -- Forgot the 2::1 split on 02/28/2005.
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
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"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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post #30 of 88
Quote:
Originally Posted by ko024 View Post

Im just curious why you think a 1 trillion dollar market cap is "unlikely"... If aapl grows at even a modest 20% per year (notice modest for aapl is incredible for any other company), then in 5 years they would have an estimated EPS of about 87. All it takes is a PE of 11.5 to get them to about 1 trillion...

Or lets try this, say aapl continues to range in the PE of about 15. What kind of earnings will get them to 1 trillion dollar market cap? About $66 EPS... Thats about 88% growth from where they are currently. Over 5 years that would be a compounded growth of about 14 percent per year... Do you think they can do that? I kind of think they can blow this away as usual... They will be the worlds first multi-trillion dollar company IMO. They will cross the trillion dollar mark in 2 years...

I personally think as Apple expands into more high-margin (and currently incompetently managed) markets that are ripe for takeover they may easily hit something like $1,000 a share in 3 to 5 years time. Call me crazy, but I see a clear path for this happening.

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply
post #31 of 88
Quote:
Originally Posted by Dick Applebaum View Post

Likely, makes more sense than selling one's AAPL to invest in real estate.

Let's see... A home purchased for $500,000 in 2003 is worth $250,000 today...

That same $500,000 invested in AAPL in 2003 is worth $26,000,000 and change today!


Oops... Make that $52,000,000 and change -- Forgot the 2::1 split on 02/28/2005.

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply
post #32 of 88
Quote:
Originally Posted by gwmac View Post

Really wish I had sold at $525 a week or so ago and bought back in the $490's soon after. I wonder if this is another opportunity to sell at $535 and buy back again. Anyone else thinking it might push back to around $500?

Of course it will, after all Apple's doomed, haven't you heard?

Quote:
Apple first surpassed Microsoft in May of 2010...

Jeez, has it been that long ago? Time just flies when you're having fun.
post #33 of 88
"Because the people who are crazy enough to think they can change the world, are the ones who do."
post #34 of 88
You guys and your APPL stock. I'm counting on my Siberian Railroad stock to keep me warm when I retire.
post #35 of 88
Quote:
Originally Posted by Macky the Macky View Post

You guys and your APPL stock. I'm counting on my Siberian Railroad stock to keep me warm when I retire.

Dumped those Russian Imperial Bonds, eh?
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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post #36 of 88
If Apple were a country it would have the 20th largest economy based on GDP.
post #37 of 88
I don't understand the stock market, which is probably why I don't have any shares. I always thought the point of owning shares was for the dividends. The higher the profits, the better the dividend and so the shares go up in line with the P/E ratio.

Apple doesn't pay any dividends so why does the share price keep going up every day? Surely if they don't pay any dividends there is no point owning the stock unless you think the stock is going to just keep going up and up which it might well do.

Either all the fund managers think Apple will pay a dividend sometime soon or they're looking to make a lot of money quickly by riding the tidal wave up. I wonder if the stock will come back down once they start selling to take their profits.

It's a strange world we live in.
post #38 of 88
Quote:
Originally Posted by GregInPrague View Post

It's interesting that Apple's iPhone stock app has the same close price for Apple at $535.41 but shows the market cap being $499.2 billion. Percentage-wise it's not a huge difference, but one of the market cap figures is off by $1.01 billion and that's not nothing.

Wish I'd forgotten that it's smart to diversify when I bought more Apple, Exxon and Yahoo in early 2009 and put it all in Apple at $91 instead.
post #39 of 88
Final tally for After Hours is $500,990,372,100.00

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #40 of 88
Quote:
Originally Posted by anantksundaram View Post

PetroChina crossed an implied $1 trillion in value in 2007, but that was because Chinese stock markets were on a bubble-ish tear at that time, the stock had just done an IPO, and the float was very small (<5%, I think). It is trading in the mid-$200Bs now.... (There were similar run-ups for Cisco and Micrsoft; their P/E ratios made no sense. Unlike that for Apple, which is still only ~15x).

The question to ask is: Could Apple be the world's first sustainably, reliably trillion dollar company?

(For the record, I think it's unlikely. But $750B is certainly in the realm of possibility).

It's not unlikely. Why should it be? It's only a number. There could be some resistance there, but it would break through. That's assuming Apple continues on a major growth pattern.

We're only talking about a doubling now. Four, five years? Sure it's possible.
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