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Apple stock touches $600 in early morning trading ahead of iPad launch

post #1 of 75
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Apple's stock catapulted to new heights on Thursday, briefly breaching the $600 barrier for the first time in the company's history as investors remain upbeat about this Friday's iPad launch.

Shares of the Cupertino, Calif.-based company hit the $600 mark just moments before the 9:30 a.m. opening bell, continuing the staggering rate of momentum that has seen the stock leap nearly $200 since the first trading day of the year, when it sat at $411.23.

Apple shares bounced around the $599 range during most of the pre-market trading session on Thursday before reaching an all-time high of $601.01. Shares quickly retreated, however, with little support from the Street at post $600 levels.

As it stands, shares of Apple are up significantly from earlier this week when it reached a new high of $568.10 on Tuesday. The stock has swelled in value ever since last week's unveiling of the new iPad during a media event hosted by chief executive Tim Cook in San Francisco.

It was just last month that the total market capitalization of Apple reached nearly a half-trillion dollars in value. By Thursday, the company's market cap had ballooned by another $50 billion to about $550 billion.

AAPL stock has rocketed higher in anticipation of the new iPad, which is set to go on sale at 8 a.m. local time in 10 countries on Friday. It will be the largest product launch day that Apple has ever orchestrated.


/>AAPL stock is up 46% since the start of 2012. Chart via Google.


With initial online preorders already sold out, analysts have projected that Apple will sell at least 1 million of the new third-generation iPad on its launch day. As the launch comes late in the March quarter, industry watchers generally expect Apple to sell 10.1 million iPads in the current quarter, with sales rebounding in the subsequent June quarter.

Early projections have called for Apple to sell around 66 million total iPads in 2012. Significant growth for the iPad is expected to push AAPL stock even higher, with price targets of $710 at Canaccord Genuity and $720 from Morgan Stanley.

[ View article on AppleInsider ]
post #2 of 75
Doomed, I tell you.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #3 of 75
Makes sense. The reviews are in and Apple has another winner with the iPad. Court cases are going in their favor. HBO is playing ball with Apple. They just hit 25 billion apps downloaded. And after all the excitement does down from another WWDC this summer anticipation for the iPhone 5 will build until its fall release in time for yet another record year.

No doubt, 2012 is the year of Apple.

Oh, I completely forgot the new MacBook Airs.

Author of The Fuel Injection Bible

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Author of The Fuel Injection Bible

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post #4 of 75
Wow! Apple has gone from undervalued to in the low $400s to $600 in less than 6 months, and from $500 to $600 in just a month. I'm sure the iPad is selling well, but part of me is wondering if Wall Street is again setting itself up with unrealistic expectations for earnings next month. I wouldn't be surprised to see it pull back for a few days, just like it did just shortly before last month's earnings release, before resuming a more gradual rise. Let's see what Apple has in store for iOS 6 and iPhone later this year.

FD: I'm long AAPL (I'm in for about 150 shares at an average price of $417).
post #5 of 75
Quote:
Originally Posted by Tallest Skil View Post

Doomed, I tell you.

I hate to say this but this rapid rise in the markets overall and Apple's rapid rise above and beyond the market that seems "unnatural" despite Apple's clearly undervalued state that I wonder if a correction will occur within a week or so.

"The real haunted empire?  It's the New York Times." ~SockRolid

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

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"The real haunted empire?  It's the New York Times." ~SockRolid

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

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post #6 of 75
599.65.... Go go GO!!!

Doesn't it feel great to see a company you respect finally crack the ceiling?
post #7 of 75
Although EPS is 'only' at ~17 the price will probably fall next week after the launch of the iPad. Also March 16 when some options expire so it'll be very interesting to see where it closes on Friday and opens/closes on Monday (will we have the first weekend sales figures by then?)
post #8 of 75
Quote:
Originally Posted by Sipadan View Post

599.65.... Go go GO!!!

Doesn't it feel great to see a company you respect finally crack the ceiling?

"finally crack the ceiling" == $1 trillion+ in market cap! haha
post #9 of 75
I posted this in another thread this morning. The data was valid as of approximately 3:00 a.m. this morning.

Currently Apple's market capitalization is larger than the following iconic technology companies combined:

Apple $549.71B

Qualcomm $110.13B
Cisco $108.77B
Amazon $82.94
EMC $59.74B
HP $48.22
VMWare $44.84
Texas Instruments $36.65B
Dell $30.97B
Automatic Data Processing $27.07B


Alternatively, evaluating the top five competitors in Apple's key markets, Apple is larger than the top five competitors in the each of Apple's key markets (personal computers, smartphones and tablets) combined:

Apple $549.71B

Samsung Electronics $178.28B (smartphones and tablets)
Amazon $82.94B (tablets)
HP $48.22B (personal computers)
Dell $30.97B (personal computers)
Nokia $18.33B (smartphones)
Toshiba $18.14B (personal computers)
HTC $17.62B (smartphones)
LG Display $8.95B (smartphones)
Asus\t$7.26B (personal computers)
Acer $3.97B (personal computers)
RIM\t$6.78B (smartphones and tablets)
Barnes & Noble $0.824B (tablets)
Pandigital unknown value (tablets) (would need to be valued at over $100B which is highly unlikely)

*Notably, the latter comparison (of Apple's key market competitors) includes Amazon which arguably provides the best user experience and is fairly comparable in many aspects to Apple iTunes. Even if we add Google as an important component of competitor user experience (Google Play and Google Apps including Gmail, Google Docs, Google Talk, etc.) to include an entire suite for the user experience, Apple is very nearly still larger. In other words, Apple is poised to surpass Google and Google's strategic partners in mobile computing as well as the top personal computer manufacturers in combined market capitalization this year.

Clearly, Apple is Doomed!
post #10 of 75
Quote:
Originally Posted by AppleInsider View Post



[/URL]

What a beautiful sight. And it doesn't seem to stop there. Looks like an exponential curve.
post #11 of 75
Quote:
Originally Posted by OriginalG View Post

"finally crack the ceiling" == $1 trillion+ in market cap! haha

That's a ways off. Stock will have to hit $1,072.54 per share.

"The real haunted empire?  It's the New York Times." ~SockRolid

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

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"The real haunted empire?  It's the New York Times." ~SockRolid

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

Reply
post #12 of 75
Quote:
Originally Posted by SolipsismX View Post

I hate to say this but this rapid rise in the markets overall and Apple's rapid rise above and beyond the market that seems "unnatural" despite Apple's clearly undervalued state that I wonder if a correction will occur within a week or so.

RSI for AAPL is at 86.77, heavily over-bought. I too would expect a correction next week
post #13 of 75
I think Apple will be very interesting following the announcement of iOS 6, which I believe most of us are convinced will unveil Apple's long-awaited Maps as well as the release of an LTE iPhone later this year.
post #14 of 75
Quote:
Originally Posted by SolipsismX View Post

I hate to say this but this rapid rise in the markets overall and Apple's rapid rise above and beyond the market that seems "unnatural" despite Apple's clearly undervalued state that I wonder if a correction will occur within a week or so.

No doubt we will see a correction at some point. Apple's recent rise relative to the rise in the overall market probably doesn't concern me much though. Apple's earnings growth rate is so much higher than the overall market and the PE so low that it has a lot more running to do to catch up to the overall market. Over simplification, I know, but you get my gist.
post #15 of 75
Quote:
Originally Posted by Rabbit_Coach View Post

What a beautiful sight. And it doesn't seem to stop there. Looks like an exponential curve.

Uh...

What happens to exponential curves in the stock market?
post #16 of 75
You only have to sell 1 share to get a new iPad 32GB WiFi
post #17 of 75
Quote:
Originally Posted by cameronj View Post

What happens to exponential curves in the stock market?

They never approach infinity, but they get pretty darn close?

Ah, wait, that's asymptotic curves. Maybe if we're more a-sympathetic to Microsoft, their stock will start rising. Or perhaps if we stop treating Google like a simple tot, they'd have a higher market cap.

Or maybe if I stop making absolutely wretched puns…

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #18 of 75
But....but.........but......law of large numbers............. Morons.....
post #19 of 75
On December 30, 1999 Microsoft broke the all-time market cap record at $663.9 billion. But they did it with a $199 stock in a much better environment. This is unbelievable in this economy!
post #20 of 75
Quote:
Originally Posted by cameronj View Post

Uh...

What happens to exponential curves in the stock market?

You don't have to worry.

BTW Some guys got cold feet already.

AAPL: 589.26
post #21 of 75
Quote:
Originally Posted by Tallest Skil View Post

They never approach infinity, but they get pretty darn close?

Unfortunately not. They cause inexperienced investors and "fans" of companies without the acumen to understand how the stock market works to invest too much in one company, and eventually the bubble pops and people lose their shirts.

Used to be you had to be really old to have participated in the "last" bubble and the current one. These days you only need to be 25 or so. And yet people are still too foolish to have that much hindsight.

If you find yourself "cheering" for something that happens in the stock market, it's probably too late for you.

Buy low, sell high.

Disclosure - still long Apple, but very wary.
post #22 of 75
Quote:
Originally Posted by cameronj View Post

Buy low, sell high.

Yes, but how do you know what 'high' is? High for Microsoft, for example, would be $50 per share.

Quote:
…but very wary.

And that's the right attitude to keep.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #23 of 75
Someone else has already said it...

Apple no longer needs to distort reality when it can now dictate reality.
post #24 of 75
Quote:
Originally Posted by cameronj View Post

Unfortunately not. They cause inexperienced investors and "fans" of companies without the acumen to understand how the stock market works to invest too much in one company, and eventually the bubble pops and people lose their shirts.
...
Disclosure - still long Apple, but very wary.


Apple is 71% institutionally owned, but I wish this went up to say something like Qualcomm's 82%. It'd give me more confidence.

I've been long Apple for a while now and have been close to getting out a few times. Glad that I didn't, but likewise I'm growing more wary every day especially with these massive gains in the last few days
post #25 of 75
Quote:
Originally Posted by SolipsismX View Post

I hate to say this but this rapid rise in the markets overall and Apple's rapid rise above and beyond the market that seems "unnatural" despite Apple's clearly undervalued state that I wonder if a correction will occur within a week or so.

I'd said so. Not because I am Apple Bear, but $600 is $600. It will gets a lot tougher to go from there. News that Samsung somehow hold the line on smartphone in China, and Asian customers has much less buying power than in 2011 don't help either.

Demands are there but Chinese bonuses failed to materialized this year. Think of like waiting for migratory fish that will feed you a whole year and they didn't show up this season. Surely you understand.

It doesn't matter for many of you I think, for AAPL is your nest egg now and you won't need that money for 20 years or so. Dick Applebum has Interactive Broker so maybe he can keep his ears to the ground better than me. I got SPDR; gold just give me less cases for heart attacks.

By the way, is anyone owns AAPL in need of a cash soon for whatever reason? Could you give us on this board a tip off so we won't get trampled and died in a correction stampede?
post #26 of 75
Quote:
Originally Posted by OriginalG View Post

Apple is 71% institutionally owned, but I wish this went up to say something like Qualcomm's 82%. It'd give me more confidence.

I've been long Apple for a while now and have been close to getting out a few times. Glad that I didn't, but likewise I'm growing more wary every day especially with these massive gains in the last few days

Why would you want a larger percentage to be owned by institutions? Private ownership lends a great deal of stability and reduces volatility.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #27 of 75
Quote:
Originally Posted by jragosta View Post

Why would you want a larger percentage to be owned by institutions? Private ownership lends a great deal of stability and reduces volatility.

Maybe it is getting too expensive along the way, that less and less minnow investors can keep up with margin calls and only big players can stay at the table.
post #28 of 75
AAPL P/Et16.87
AMZN P/E: 132.84

Amazon has a P/E ratio of 132.84. Can anyone explain why Apple, with a P/E ratio of only 16.87, is considered overvalued?
post #29 of 75
Quote:
Originally Posted by mtlDressShoesLicker View Post

AAPL P/Et16.87
AMZN P/E: 132.84

Amazon has a P/E ratio of 132.84. Can anyone explain why Apple, with a P/E ratio of only 16.87, is considered overvalued?

Apple is not considered overvalued.

Apple and Amazon are very different companies. There is no reason to compare them any more than there is to compare Apple with Bethlehem Steel.

Edit: By the way, these are exactly the kind of questions that should make an experienced investor start to get very worried about mania in AAPL. In my experience, that is. Once people who have no idea what they're doing or why start jumping in for fear of missing out, you're near the top.
post #30 of 75
So when should I set the alarm to take money off the table and run? Bloomberg panel gave the number at $650. If it ever hits that, cash your chips and don't look back. How's your number?
post #31 of 75
Quote:
Originally Posted by Tallest Skil View Post

Doomed, I tell you.

Yet quite snappy.
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #32 of 75
Quote:
Originally Posted by Fairthrope View Post

Maybe it is getting too expensive along the way, that less and less minnow investors can keep up with margin calls and only big players can stay at the table.

This image jumped into my head at your last comment ... "Siri, Call Moneypenny and tell her I'll be late then order me a vodka martini, shaken not stirred ... ok next, buy one thousand AAPL "
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #33 of 75
Quote:
Originally Posted by Fairthrope View Post

So when should I set the alarm to take money off the table and run? Bloomberg panel gave the number at $650. If it ever hits that, cash your chips and don't look back. How's your number?

It's early days yet.
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #34 of 75
Yes but I'd like to come back next morning knowing my car, my house and my money accounts are still there, and I still can fly home.

Would you rather leave at 11, come back for breakfast next morning and tens thousands richer? Or stay until 3, then you know you'll walk home after blew through all you got at Baccarat table?

The mood among AAPL traders since New Year reminds me of Atlantic City and not Wall Street. Been there yet?
post #35 of 75
Quote:
Originally Posted by Fairthrope View Post

So when should I set the alarm to take money off the table and run? Bloomberg panel gave the number at $650. If it ever hits that, cash your chips and don't look back. How's your number?

Whenever you find yourself worrying about it daily.

Or, the day before it hits the highest value it will have for the next 12 months.
post #36 of 75
Quote:
Originally Posted by Fairthrope View Post

Yes but I'd like to come back next morning knowing my car, my house and my money accounts are still there, and I still can fly home.

The mood among AAPL traders since New Year reminds me of Atlantic City and not Wall Street. Been there yet?

I base my faith in AAPL not on charts and traditional wisdom of how the stock market works rather on a careful and deep understanding of Apple, their markets and products over a thirty year plus history. I maybe crazy not to listen to expert analysts etc. but based on everything I know and can see, Apple have a hell of a long way to go. Anything capable of destroying Apple will have destroyed the economy as we know it anyway IMHO so it won't much matter if my money is largely in AAPL or under the mattress.
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #37 of 75
Ahh, so it will be Second Depression if AAPL will ever drops like stone, and the rest of Nasdaq board would be cratered as well if that happen. I wonder if AAPL will ended up being a lifeboat in the sea of red; everyone drops so all the hot money head this way, scrambling to get inside and avoid being wipe out. Is that what cameronj worried people are doing as well.

And how do we get a Second Depression from here? Lots of ducks have to be in a row of course. Perhaps include these unthinkable;

- Germany reintroduced deutschmark
- India and Brazil crash
- Israel jumps the gun and start bombing Iran
- etc.
post #38 of 75
The day Steve Jobs passed away I told all my friends Apple stock will go to $500 within a year.

BOY WAS I WRONG....
post #39 of 75
Quote:
Originally Posted by Fairthrope View Post

Ahh, so it will be Second Depression if AAPL will ever drops like stone, and the rest of Nasdaq board would be cratered as well if that happen. I wonder if AAPL will ended up being a lifeboat in the sea of red; everyone drops so all the hot money head this way, scrambling to get inside and avoid being wipe out. Is that what cameronj worried people are doing as well.

And how do we get a Second Depression from here? Lots of ducks have to be in a row of course. Perhaps include these unthinkable;

- Germany reintroduced deutschmark
- India and Brazil crash
- Israel jumps the gun and start bombing Iran
- etc.

As George sang , "... you gotta have faith ... "
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #40 of 75
Thanks Tim!

Bought at $30 back in 2001 or so.
Resisted pressure to sell at $200 and later when Steve's health was declining...
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