Shares of Apple reach highest-ever closing price as 'iPhone 6' & 'iWatch' hype builds
After meeting some resistance at the $100 mark, shares of Apple stayed in three-digit territory and closed above their previous all-time high in Tuesday afternoon trading, setting a new record for the company's stock.
Having overcome the $100 threshold, shares of AAPL stock went as high as $100.68, which was just below the company's highest ever intraday share price in post-split trading. When the market closed at 4:00 Eastern, Apple finished the day at $100.56.
Apple's previous split-adjusted closing record high was $100.30.
The record comes as hype is building for an anticipated Sept. 9 event where the company is expected to announce its next-generation "iPhone 6" smartphone in two screen sizes: 4.7 inches and 5.5 inches. In addition, the company is also heavily rumored to be planning an October event where it could unveil a wrist-worn "iWatch," along with refreshed iPad models featuring Touch ID fingerprint sensors.
Apple's gains on Tuesday were helped by a ringing endorsement from analyst Katy Huberty of Morgan Stanley, who issued a note to investors laying the case that it's an ideal time to buy in to the company ahead of a strong product launch cycle this fall. In particular, Huberty has high hopes for an anticipated "iWatch," predicting that the company will sell 41 million units in its first year alone.
Although Apple reached a record share price on Tuesday, the company remains well behind its highest-ever market capitalization of over $665 billion. As of Tuesday, Apple's market cap was valued at just over $602 billion.
Having overcome the $100 threshold, shares of AAPL stock went as high as $100.68, which was just below the company's highest ever intraday share price in post-split trading. When the market closed at 4:00 Eastern, Apple finished the day at $100.56.
Apple's previous split-adjusted closing record high was $100.30.
The record comes as hype is building for an anticipated Sept. 9 event where the company is expected to announce its next-generation "iPhone 6" smartphone in two screen sizes: 4.7 inches and 5.5 inches. In addition, the company is also heavily rumored to be planning an October event where it could unveil a wrist-worn "iWatch," along with refreshed iPad models featuring Touch ID fingerprint sensors.
Apple's gains on Tuesday were helped by a ringing endorsement from analyst Katy Huberty of Morgan Stanley, who issued a note to investors laying the case that it's an ideal time to buy in to the company ahead of a strong product launch cycle this fall. In particular, Huberty has high hopes for an anticipated "iWatch," predicting that the company will sell 41 million units in its first year alone.
Although Apple reached a record share price on Tuesday, the company remains well behind its highest-ever market capitalization of over $665 billion. As of Tuesday, Apple's market cap was valued at just over $602 billion.
Comments
I might also note that the stock CMG (Chipotle Mexican Grill) has been going absolutely insane for the past year. I had a buy order for that one, but my level was just a bit too low at the time. Would've been a great one to own.
thats because apple retired the shares it bought back. less shares to multiple against the stock price.
Not my area ... but shouldn't there be some sort of formula that corrects for that, else how can you ever compare different companies let alone situations like this?
Ugh! I was going to buy Tesla last year, and GT this year. Laziness got the best of me. I did buy Netflix earlier this year, but sold it late last week.
So many large companies buy shares that it would be a real pain to do. But I don't find total worth to be of value, other than for fun.
Besides, they're worth whatever they're worth depending on the number of current shares.
I was shocked it didn't drop like a brick after hitting 100! Not that I am complaining of course.
100 has been a resistance point that is why the last few months when it got close it immediately pulled back now that it over it should stay unless other factors in the market which will pull it down again.
Although Apple reached a record share price on Tuesday, the company remains well behind its highest-ever market capitalization of over $665 billion. As of Tuesday, Apple's market cap was valued at just over $602 billion.
thats because apple retired the shares it bought back. less shares to multiple against the stock price.
Finally the analysts are catching on to what I've been saying all along. A new closing high in the share price, yes, but not a new high in the company's valuation. When Apple closed at $702.10 on Sept 19, 2012, the market had valued the company at about $665 billion, considering the 945 million shares outstanding at the time. With all the shares bought back since, the market would have to assign a share price of about $110 to assign Apple the same overall valuation of $665 billion it assigned it two years ago. I fully expect the market to do just that in the weeks to come.
http://fortune.com/2014/06/08/apple-splits-7-to-1/
Ugh! I was going to buy Tesla last year, and GT this year. Laziness got the best of me. I did buy Netflix earlier this year, but sold it late last week.
Been there done that, the new fertile grounds are Biotech. Apple is not moving that fast even at $100 it not going to go to $110 that fast too many shares outstanding. The good thing about having Apple it props up the investment portfollio since it now not going to rocket up and down like it was doing so it time to find other crazy stocks to take advantage of the ups and down and GT may be one of them.
Mm-mmm...
I might also note that the stock CMG (Chipotle Mexican Grill) has been going absolutely insane for the past year. I had a buy order for that one, but my level was just a bit too low at the time. Would've been a great one to own.
Buy Huy Fong Sriracha stocks instead...lol
The smart people know you compare PE ratio not stock price.
Better to find an adjusted market cap based on [market cap - liquid assets + liabilities] and use that to compute an adjusted P/E ratio.
For example, Apple market cap [602B] -
June 28 current assets [68B] -
June 28 long term investments [126.7B] +
June 28 total liabilities [101B] = 508.3B
So adjusted price per share is 508.3B/5.99B = 84.86
Adjusted trailing P/E = 84.86/5.96 = 14.24
Not my area ... but shouldn't there be some sort of formula that corrects for that, else how can you ever compare different companies let alone situations like this?
You compare on metrics like P/E, which by itself may be too simplistic, but does provide a level ground upon which to compare different companies and is constantly adjusted to the most recent financial information available for each company. If Apple retired half it's shares tomorrow (and made that information public) the earnings per share would double and the P/E would be cut in half. You'd see this metric update immediately. You'd also see the debt on the company's books skyrocket, and that information factors into other metrics that you can use to compare companies. Etc.
But you need to take into account dividends paid also
And then you need to take into account cash flow, retained earnings, debt, debt-to-equity, etc. Those dividends were not paid from a static nongrowing pile of cash. In spite of paying the dividends and buying back shares, Apple has continued to grow its net cash on the books, albeit more slowly.
Anecdotally I've heard and read many saying as soon as it hit 100 they'd sell, especially those that had just bought in, and got caught by not selling, when AAPL went over 700 last time. The fact 100 didn't trigger a sell off was a relief to me.
The valuation just isn't that important when it reaches these levels. When it's much lower, even $100 billion, or so, it's ripe for a takeover, if there's enough cash. But no organization can afford to buy the biggest companies.
And if investors act as they always do, AAPL should dip during or after the iPhone announcement.
Then it'll gradually recover over a few months, especially after the October earnings call.
Happens nearly every time. Not because of any particular business logic.
Just because of the old saying: "Buy on rumor, sell on news."