Shares of Apple reach highest-ever closing price as 'iPhone 6' & 'iWatch' hype builds

Posted:
in AAPL Investors edited August 2014
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.


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


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.
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Comments

  • Reply 1 of 55
    fallenjtfallenjt Posts: 3,976member
    Expected. I thought it would have come later.
  • Reply 2 of 55
    SpamSandwichSpamSandwich Posts: 31,100member
    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.
  • Reply 3 of 55
    hngfrhngfr Posts: 72member
    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.
  • Reply 4 of 55
    melgrossmelgross Posts: 31,658member
    I believe that the all time intraday high was the equivalent of $100.72.
  • Reply 5 of 55
    MacProMacPro Posts: 18,225member
    I was shocked it didn't drop like a brick after hitting 100! Not that I am complaining of course.
  • Reply 6 of 55
    MacProMacPro Posts: 18,225member
    hngfr wrote: »
    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.

    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?
  • Reply 7 of 55
    melgrossmelgross Posts: 31,658member
    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.

    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.
  • Reply 8 of 55
    melgrossmelgross Posts: 31,658member
    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?

    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.
  • Reply 9 of 55
    Share price is irrelevant. Market cap is the issue and with the current shares outstanding the share price would need to reach about $110 to meet the previous market cap high.
  • Reply 10 of 55
    At the all time high capitalization price of 665 and taking into account Apple's share repurchase the split adjusted price was $110. We still have room to go to reach that record.
  • Reply 11 of 55
    maestro64maestro64 Posts: 4,564member
    Quote:

    Originally Posted by digitalclips View Post



    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.

  • Reply 12 of 55
    radarthekatradarthekat Posts: 3,048moderator
    Quote:
    Originally Posted by hngfr View Post



    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/

  • Reply 13 of 55
    maestro64maestro64 Posts: 4,564member
    Quote:

    Originally Posted by melgross View Post





    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.

  • Reply 14 of 55
    fallenjtfallenjt Posts: 3,976member
    Quote:

    Originally Posted by SpamSandwich View Post



    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

  • Reply 15 of 55
    e1618978e1618978 Posts: 6,074member
    Quote:

    Originally Posted by sog35 View Post

     

    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



     

  • Reply 16 of 55
    radarthekatradarthekat Posts: 3,048moderator
    Quote:

    Originally Posted by digitalclips View Post





    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.

  • Reply 17 of 55
    radarthekatradarthekat Posts: 3,048moderator
    Quote:
    Originally Posted by sog35 View Post

     

     

    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.

  • Reply 18 of 55
    MacProMacPro Posts: 18,225member
    maestro64 wrote: »
    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.

    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.
  • Reply 19 of 55
    melgrossmelgross Posts: 31,658member
    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/

    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.
  • Reply 20 of 55
    sockrolidsockrolid Posts: 2,788member

    Originally Posted by AppleInsider View Post

    ... shares of AAPL stock went as high as $100.68 ...


     

    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."

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