Apple projected to surpass Exxon, become world's largest market cap company
Apple's meteoric rise could see it overtake oil giant Exxon-Mobil and become the world's largest company by market value, one new analysis has projected.
Brian Marshall with Gleacher & Company sent a note to investors this week in which he raised his price target to AAPL stock to $500, up from $450. But before either of those numbers is reached, Apple could become the largest market cap company in the world when the stock hits $445, based on his initial calculations done Wednesday.
Marshall's estimate assumes that the current leader, Exxon-Mobil, would remain flat, putting Apple in a position to become the largest company in the world, in terms of market value. But with Exxon stock up more than 2 percent Thursday afternoon, that makes Apple's target now even higher.
Still, Exxon is now within sight as Apple continues to grow. Marshall noted that Apple was only about 13 percent away from overtaking the company based on aftermarket levels reached when the company reported its quarterly earnings on Tuesday. During that period, the stock briefly broke the $400 barrier.
Apple currently sits at No. 2, having passed PetroChina Co. last September. Since then, the stock has hit a new all-time high, and is up nearly $100.
As of Thursday afternoon, AAPL stock has a market cap of more than $350 billion. The Cupertino, Calif., company surpassed Microsoft in May of 2010 when its market cap reached $222 billion, but the iPhone maker has since left its rival in the dust. Microsoft's market cap as of Thursday afternoon was less than $230 billion.
But Exxon's market capitalization has also continued to grow.
Since September, when the company was valued at $313 billion, the oil company has seen its market value surge to nearly $420 billion.
Apple's earnings reported on Tuesday wowed Wall Street, led by a record 20.34 million iPhones sold. The iPad also shipped a record 9.25 million units, as both platforms saw year over year growth percentages well into the triple digits.
Brian Marshall with Gleacher & Company sent a note to investors this week in which he raised his price target to AAPL stock to $500, up from $450. But before either of those numbers is reached, Apple could become the largest market cap company in the world when the stock hits $445, based on his initial calculations done Wednesday.
Marshall's estimate assumes that the current leader, Exxon-Mobil, would remain flat, putting Apple in a position to become the largest company in the world, in terms of market value. But with Exxon stock up more than 2 percent Thursday afternoon, that makes Apple's target now even higher.
Still, Exxon is now within sight as Apple continues to grow. Marshall noted that Apple was only about 13 percent away from overtaking the company based on aftermarket levels reached when the company reported its quarterly earnings on Tuesday. During that period, the stock briefly broke the $400 barrier.
Apple currently sits at No. 2, having passed PetroChina Co. last September. Since then, the stock has hit a new all-time high, and is up nearly $100.
As of Thursday afternoon, AAPL stock has a market cap of more than $350 billion. The Cupertino, Calif., company surpassed Microsoft in May of 2010 when its market cap reached $222 billion, but the iPhone maker has since left its rival in the dust. Microsoft's market cap as of Thursday afternoon was less than $230 billion.
But Exxon's market capitalization has also continued to grow.
Since September, when the company was valued at $313 billion, the oil company has seen its market value surge to nearly $420 billion.
Apple's earnings reported on Tuesday wowed Wall Street, led by a record 20.34 million iPhones sold. The iPad also shipped a record 9.25 million units, as both platforms saw year over year growth percentages well into the triple digits.
Comments
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
Maybe it's time to sell?
Maybe it's time to sell?
Never take investment advise from internet postings, including this one.
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
In what way?
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
Margins on fuel are razor thin. How much gas must you purchase to put $200 profit in Exxon's wallet? I think Apple's latest quarterly profit exceeded Exxon's.
Apple still hasn't cracked the living room and they're working to insert themselves in the Credit/Debit payment processing chain ($13T in card purchases last year) with NFC enabled iOS devices. I think there's a bit of room yet to run.
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
Unless people start becoming more energy efficient (you never know) and/or people start using new kinds of computers in new ways, in more parts of their lives (you never know).
Apple still hasn't cracked the living room and they're working to insert themselves in the Credit/Debit payment processing chain ($13T in card purchases last year) with NFC enabled iOS devices. I think there's a bit of room yet to run.
There's more room to run in the BRIC countries too: Brazil, Russia, India, China.
In what way?
As you mentioned in another thread, P/E compression is still ongoing, but is Apple's P/E in the right position relative to its competitors? Apple 15.33, HP 8.89, DELL 10.25, IBM 15.03, MSFT 10.74, GOOG 21.89
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
It's not as crazy as it seems once you remember that Exxon pays a dividend
I think though it is okay to hang on until at least 450 maybe even 500, at which point sell half... and then
Why because there still is China, iCloud and apple HDTV to come.
Then of course we could always ride it up and down over next few years between earnings at which point SJ will be gone and then the stock will tank 30% probably.. and buy in on rumor of a competent CEO, and sell on news of his appointment.
Unless people buy more computers than they do fuel, I smell a bubble.
I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....
In what way?
I'm guessing that: (i) He has no clue, since it's one of his typical knee-jerk, anti-Apple posts; (ii) He owns no AAPL.
As you mentioned in another thread, P/E compression is still ongoing, but is Apple's P/E in the right position relative to its competitors? Apple 15.33, HP 8.89, DELL 10.25, IBM 15.03, MSFT 10.74, GOOG 21.89
The question should be whether it's in the right position relative to its rate of earnings growth. Even with all the shock and awe coming from Apple's last quarterly report, the stock still did not break out of its compression pattern. Earnings were up 125% over a year ago. Is the stock up anywhere close to that much? No.
Can't really see anybody out there that could outsmart Apple and have them retract in any way, (still 10 years is a ways out).
But as far as Exxon. What could the next 10 years bring? A lot of players out there are really going hard into different energy consumption. That and also Exxon is not immune to some kind of accident. BP got hit pretty hard by that.
It's not as crazy as it seems once you remember that Exxon pays a dividend
It has nothing to do with the dividend. It has all to do with the price of oil the past year.
If oil process come down, then the stock will drop a lot.
The question should be whether it's in the right position relative to its rate of earnings growth. Even with all the shock and awe coming from Apple's last quarterly report, the stock still did not break out of its compression pattern. Earnings were up 125% over a year ago. Is the stock up anywhere close to that much? No.
If this page comes through intact, we can see where some of the inequality lies. Some of the stocks that were way up today don't deserve to be. Some deserve to have gone down!
http://markets.money.cnn.com/secure/watchlist/Index.asp
It has nothing to do with the dividend. It has all to do with the price of oil the past year.
If oil process come down, then the stock will drop a lot.
Of course it relates to the dividend - whenever a firm pays a divided the market cap drops by a related amount, normally a little under the dividend amount.
If Exxon hadn't been paying dividends all these years they'd have even more cash than they do, and an appropriately larger market cap. Alternatively if Apple was paying out a dividend its market cap would be growing less quickly.