Apple stock breaks $600 threshold as investors embrace capital reinvestment

Posted:
in AAPL Investors edited May 2014
Riding high on a strong March quarter and the announcement of an expanded capital reinvestment program, shares of Apple closed above $600 on Monday afternoon, setting a new 52-week high for the company.


The New York Stock Exchange, credit Carlos Delgado via Wikipedia.


When the markets closed at 4:00 Eastern, Apple was at $600.96. The company crossed the $600 threshold just minutes before the NASDAQ halted official trading for the day.
Apple shares closed above $600 for the first time since November of 2012, but are still off $100 from their all-time high reached in September of that same year.
Apple's shares were up more than $8 for the day to reach the mark. The company's market capitalization is now at $517.65 billion.

The company also received a strong endorsement earlier Monday from RBC Capital Markets, which issued its second price target increase in as many weeks. Analyst Amit Daryanani now predicts that Apple shares will reach at least $645 in the next year, while his "upside scenario" predicts a price of $725 per share.

Apple's all-time high came in September of 2012 when shares crossed $700 briefly. Following that, shares tumbled throughout late 2012 and early 2013.

But the stock has mounted a comeback in recent weeks, and shares are now trading at their highest levels since November of 2012. Those gains have been driven by a strong March quarter, an expanded capital reinvestment program, and a forthcoming 7-for-1 stock split.

Shares of AAPL briefly flirted with a price above $599 last week, but eventually retreated after meeting resistance at the $600 barrier. That barrier didn't hold Monday, however, as Apple managed to push past the psychological threshold with only minutes to go in afternoon trading.
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Comments

  • Reply 1 of 54
    wardcwardc Posts: 150member

    Really wishing I had bought about 1000 shares in 1997 when the stock was around $13.00. Now I'd be rich!

     

    Well, I do own 5 shares at the moment. Bought them around $327

  • Reply 2 of 54
    dimmokdimmok Posts: 359member
    Congrats AAPL
  • Reply 3 of 54
    curtis hannahcurtis hannah Posts: 1,755member
    Mehta happened to shares dropping in spring time, oh them predictions
  • Reply 4 of 54
    phone-ui-guyphone-ui-guy Posts: 1,018member

    I am thankful for the availability of a Self Directed Brokerage Account for my 401K. 

  • Reply 5 of 54
    georgeip5georgeip5 Posts: 225member
    I was just checking the stocks and staring at the 597 in the morning and I was like "AAPL is going to go past $600 today" and I got a notification after staring at the $599 and here we are at $600.96 closed for today and raising again tomorrow! Apple is really making a good and healthy comback in sticks from end 2012. Keep it up Apple I love your products!!!
  • Reply 6 of 54
    SpamSandwichSpamSandwich Posts: 31,005member

    Staying long on AAPL.

  • Reply 7 of 54

    I'm also glad I could move my 401k into an IRA... I bought AAPL at $176, followed it down to $85 and back up again. In my personal account I bought and bought small numbers of shares from $85 up in my non-IRA account.  I then sold everything at $700, but then bought back, followed it down to $600 where I sold my personal account and have left my IRA's for the long-haul... It's been a ride.

  • Reply 8 of 54
    MacProMacPro Posts: 18,165member
    Keep going AAPL. Become the trillion company within 12 months ....
  • Reply 9 of 54
    MacProMacPro Posts: 18,165member
    I'm also glad I could move my 401k into an IRA... I bought AAPL at $176, followed it down to $85 and back up again. In my personal account I bought and bought small numbers of shares from $85 up in my non-IRA account.  I then sold everything at $700, but then bought back, followed it down to $600 where I sold my personal account and have left my IRA's for the long-haul... It's been a ride.

    Good call. We did same when we sold our investment properties just before the boom bust (which we had owned over a decade, we never flipped) but never had the balls to sell at 700 but still very, very happy to ride all the ups and downs as they never got close to our buy in.
  • Reply 10 of 54
    MacProMacPro Posts: 18,165member
    sog35 wrote: »
    I can only imagine how many Apple fans will buy a few shares once this gets split to $90.

    Tim Cook and the new CFO played this one perfectly.

    That is the hope. I know of several already planning that.
  • Reply 11 of 54
    jungmarkjungmark Posts: 6,680member
    Hmmm. What would Constipation Odo say?

    Good news. Still not selling some shares until after the split. I spent 6500 for 100 shares back in 2005, pre split. I'm playing with house money now :)
  • Reply 12 of 54
    lkrupplkrupp Posts: 6,954member
    Quote:

    Originally Posted by digitalclips View Post





    That is the hope. I know of several already planning that.

     

    You can put my name on that list too.

  • Reply 13 of 54
    512ke512ke Posts: 782member

    Well my post got yanked.  That was a first.

     

    All I pointed out was that the headline is editorializing.  

     

    How do we know that "investors embrace capital reinvestment?"  Maybe that's not the main reason -- Apple has been repurchasing shares for a while, while the stock did not rise that much.

     

    Reasons for a rise now?  Repurchases are only a small part, I think.  New products.  Good profits.  And the popping bubble of some of its competitors.  Safety of the stock relative to other techs.  Good fundamentals.  And shaking off the irrationality that punished AAPL for good performance while rewarding stocks like Amazon's for bleeding money/no profits.

     

    Do not delete if you want my unsolicited opinions free of charge lol.

  • Reply 14 of 54
    rogifanrogifan Posts: 10,669member
    512ke wrote: »
    Well my post got yanked.  That was a first.

    All I pointed out was that the headline is editorializing.  

    How do we know that "investors embrace capital reinvestment?"  Maybe that's not the main reason -- Apple has been repurchasing shares for a while, while the stock did not rise that much.

    Reasons for a rise now?  Repurchases are only a small part, I think.  New products.  Good profits.  And the popping bubble of some of its competitors.  Safety of the stock relative to other techs.  Good fundamentals.  And shaking off the irrationality that punished AAPL for good performance while rewarding stocks like Amazon's for bleeding money/no profits.

    Do not delete if you want my unsolicited opinions free of charge lol.
    New products? What new products do we know about now that we didn't before the earnings call?
  • Reply 15 of 54
    512ke512ke Posts: 782member

    We 

    Quote:
    Originally Posted by Rogifan View Post





    New products? What new products do we know about now that we didn't before the earnings call?

    I meant we know new products are coming by the end of the year.

     

    Therefore, in my opinion, the closer we get to the end of the year OR the unveiling of said products, the more the stock will rise.

     

    And then of course it will go down the day after the unveiling or Dec 31, but that's beside the point.

     

    I will also point out just for the heck of it that I bought my first APPL shares closer to 11.

  • Reply 15 of 54
    ralphmouthralphmouth Posts: 192member

    Two years ago, I bought about 40 shares total at $535, $585, and $615. Glad I didn't sell when it dropped below $500. Now I just need to figure out the right time to sell.

  • Reply 17 of 54
    atlappleatlapple Posts: 496member

    Bought my first shares of AAPL at 6.29. Kind of funny in the 80's thought they would be worth nothing. Bought again in 2007 at 89.60. Again in 2009 at 85.30 my largest purchase. Bought in again 2013 at 429. 

     

    Second best for me GE in 2009 at 7.10. Have to love post Jack Welch and the company being driven into the ground. 

  • Reply 18 of 54
    SpamSandwichSpamSandwich Posts: 31,005member
    Quote:

    Originally Posted by AtlApple View Post

     

    Bought my first shares of AAPL at 6.29. Kind of funny in the 80's thought they would be worth nothing. Bought again in 2007 at 89.60. Again in 2009 at 85.30 my largest purchase. Bought in again 2013 at 429. 

     

    Second best for me GE in 2009 at 7.10. Have to love post Jack Welch and the company being driven into the ground. 


     

    Good for you! I hope you bought a truckload at $6.29.

  • Reply 19 of 54
    iobserveiobserve Posts: 95member

    The real question is, after the split- how long until it hits $200?

     

    so far this year we have increasing revenues, increasing profits on existing product lines.

    a new product in a new category guaranteed by Tim Cook before the end of the year.

    continued repurchase of shares causing increased stock price even with unchanged market cap.

    decent dividend that will increase annually.

  • Reply 20 of 54
    SpamSandwichSpamSandwich Posts: 31,005member
    Quote:

    Originally Posted by iObserve View Post

     

    The real question is, after the split- how long until it hits $200?

     

    so far this year we have increasing revenues, increasing profits on existing product lines.

    a new product in a new category guaranteed by Tim Cook before the end of the year.

    continued repurchase of shares causing increased stock price even with unchanged market cap.

    decent dividend that will increase annually.


     

    I can imagine $100 post-split within 6 months (possibly sooner), but I wouldn't make any bets to that effect. It really depends on how any new products are received.

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