Apple & tech's disproportionate share of S&P index raising eyebrows

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Comments

  • Reply 21 of 32
    StrangeDaysStrangeDays Posts: 12,879member

    Apple is already out of steam and Amazon is just getting started.
    By “already” you mean, forty-two years later? Even then, you’re crazy. 
    fastasleepwatto_cobrapscooter63bestkeptsecret
  • Reply 22 of 32
    I have to wonder if the Trade War between the US and China and the fact that 'electronic items' are subject to an import tax when coming into the US will affect the APPL earnings and therefore the share price?

    Does anyone know if Apple goods that are made in China will be subject to this extra import tax?
    There is no “trade war”. There are Chinese tariffs, rampant intellectual property theft and protectionist policies and now there will be additional tariffs on Chinese goods. The playing field is not even. The goal should be no tariffs or subsidies anywhere at any time.
    I guess the EU is in the same boat as China in that it steals US IP then?
    If not then why has the POTUS increased the import taxes on EU made Steel and Aluminium, where some special types of both are only made in the EU and are vital to US Military Projects?
    If there is no trade war then why has the EU retaliated and increased dutied on Harley's and Jack Daniels?

    The POTUS Started this Trade War. He could finish it today if he wanted to.

    Anyway, you didn't answer my question about possible extra taxes on Apple kit being imported from China where, as we all know it is made.
    GeorgeBMac
  • Reply 23 of 32

    Apple is already out of steam and Amazon is just getting started.
    By “already” you mean, forty-two years later? Even then, you’re crazy. 
    Amazon's company song should be...

    "When amazon rules the world..."

    Something that Apple has never set out to do.
    watto_cobraGeorgeBMac
  • Reply 24 of 32
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Is it that "tech" has gotten so large -- or that everything else has shrunk?

    Compared to 50 years ago:
    1)   Basic industry (steel, aluminum, auto, etc...) in the U.S. pretty much left town.
    2)   What USED to be tech (Westinghouse, WABCO, GE, RCA, Zenith, etc...) essentially imploded.

    We are left with:  Healthcare, "tech" and financial...  In other words:   Thin Ice...

    Today, few seem to remember the might of American industry.   WW-II was not won by American soldiers but by American basic industry.    We out-produced both the Axis powers and Japan.  That industrial might transitioned into peacetime through the 50's, 60's and 70's and greatly profited from its position.   Then, in the 80's, foreign competition (mostly Japanese at the time) that was cheaper and better began to whittle away at it...  A piece here, a piece there...  Death by a thousand cuts....

    It wasn't a fall off of a cliff.   It was a slow sinking into quick sand spread over  20-30 years.  And today, "tech" gives us a false sense of security that we are still #1 and everything is as it should be.  100 years ago England thought the same....
  • Reply 25 of 32
    macxpressmacxpress Posts: 5,808member

    Apple is already out of steam and Amazon is just getting started.
    By “already” you mean, forty-two years later? Even then, you’re crazy. 
    Amazon's company song should be...

    "When amazon rules the world..."

    Something that Apple has never set out to do.
    Why should it be Apple's goal to rule the world? Apple's goal is to engineer and produce products that changes peoples lives. It's not how many of something they sell, its what it does, how it changed someone's life, etc. If all you care about is quantity and how high Apple's stock price is then you're into Apple for all the wrong reasons. 

    Amazon will eventually screw itself and end up in many legal battles with the government(s). It's what happens when all you set out to do is rule the world. 
    GeorgeBMac
  • Reply 26 of 32
    nunzynunzy Posts: 662member
    macxpress said:

    Apple is already out of steam and Amazon is just getting started.
    By “already” you mean, forty-two years later? Even then, you’re crazy. 
    Amazon's company song should be...

    "When amazon rules the world..."

    Something that Apple has never set out to do.
    Why should it be Apple's goal to rule the world? Apple's goal is to engineer and produce products that changes peoples lives. It's not how many of something they sell, its what it does, how it changed someone's life, etc. If all you care about is quantity and how high Apple's stock price is then you're into Apple for all the wrong reasons. 

    Amazon will eventually screw itself and end up in many legal battles with the government(s). It's what happens when all you set out to do is rule the world. 
    Apple's goal is to take as much money out of your pocket as they possibly can, and then to send as much of that money to Wall Street as they possibly can.

    Don't kid yourself.
  • Reply 27 of 32
    SpamSandwichSpamSandwich Posts: 33,407member
    I have to wonder if the Trade War between the US and China and the fact that 'electronic items' are subject to an import tax when coming into the US will affect the APPL earnings and therefore the share price?

    Does anyone know if Apple goods that are made in China will be subject to this extra import tax?
    There is no “trade war”. There are Chinese tariffs, rampant intellectual property theft and protectionist policies and now there will be additional tariffs on Chinese goods. The playing field is not even. The goal should be no tariffs or subsidies anywhere at any time.
    I guess the EU is in the same boat as China in that it steals US IP then?
    If not then why has the POTUS increased the import taxes on EU made Steel and Aluminium, where some special types of both are only made in the EU and are vital to US Military Projects?
    If there is no trade war then why has the EU retaliated and increased dutied on Harley's and Jack Daniels?

    The POTUS Started this Trade War. He could finish it today if he wanted to.

    Anyway, you didn't answer my question about possible extra taxes on Apple kit being imported from China where, as we all know it is made.
    Does the EU engage in protectionist policies, including subsidizing production or companies? My guess is "yes":

    https://www.telegraph.co.uk/business/2016/10/09/brexit-gloom-has-lifted-but-the-big-issue-still-looms-large-is-t/
  • Reply 28 of 32
    tallest skiltallest skil Posts: 43,388member
    nunzy said:
    ...send as much of that money to Wall Street...
    What does this mean? Does Apple–as a corporation–trade stocks on the stock market? Does the corporation hold shares in other businesses? And, perhaps most important to your assertion, does the corporation actively seek to expand their presence or depth thereon?

    What I think you mean to say is that Apple–like every single last one of us–is enslaved to The Bank from the day we are born. There is >$1 of debt in existence for every $1 in existence. These debts, by definition, can never be repaid. Tax on income exists for the sole purpose of paying this fabricated slave debt. From this debt, all other economic functions are created out of wholecloth. End the Fed.
  • Reply 29 of 32
    Was the author attempting to be funny on purpose?:  

    The big risk is that, if say Apple is too large a percentage of the S&P, a brief panic about its stock -- as we saw earlier this year over reports of softening iPhone demand, that turned out to be wildly overstated -- could spark a wave of short-selling that hurts the entire index. This leaves the entire S&P open to adverse effects, in case an unscrupulous actor wanted to manipulate the market with false information about one company or industry. ”
    For readership...U
  • Reply 30 of 32
    zonezone Posts: 71member
    Apple will likely never reach $200 a share, while Facebook soars beyond $250 and Amazon goes well past $2200 a share. All the FANG stocks will easily outperform Apple both short- and long-term. Tim Cook has done well as Apple's CEO but he's not even close to Zuckerberg or Bezos when it comes to getting investors crazily desperate to buy Apple stock. It's just amazing how badly big investors want to pay $2200 a share and more for Amazon stock. Apple is already out of steam and Amazon is just getting started. Amazon will reach a $1T market cap long before Apple does.
    Arithmetic.

    Apple is 4% of the S&P. Apple earns internally about 7%. Apple can buy back 10% of the company and get a 7% ROI. That knocks out any major risk to AAPL.

    A 10% hit to AAPL is a .4% hit to S&P 500. How long would this last? Apple will have another $350B to spend on buybacks over the next five years. 

    When AAPL goes above $250, we can talk about risk.
    Apple will likely never reach $200 a share, while Facebook soars beyond $250 and Amazon goes well past $2200 a share. All the FANG stocks will easily outperform Apple both short- and long-term. Tim Cook has done well as Apple's CEO but he's not even close to Zuckerberg or Bezos when it comes to getting investors crazily desperate to buy Apple stock. It's just amazing how badly big investors want to pay $2200 a share and more for Amazon stock. Apple is already out of steam and Amazon is just getting started. Amazon will reach a $1T market cap long before Apple does. It's just my 'opinion' based upon current performance of the stocks I have mentioned.
    Apple will hit 200 by the end of the year and most likely 220 and beyond. FB is going nowhere in the future and will become a no-go company in the next decade or so. People will drop the social media the next decade as Millenials discover how pointless it is. Facebook is a dead company with no upside. Now Amazon is a different story and who knows with them... Apple will enter and control markets that we can't even images now and a company to invest for the future. 
  • Reply 31 of 32
    nunzynunzy Posts: 662member
    macxpress said:

    Apple is already out of steam and Amazon is just getting started.
    By “already” you mean, forty-two years later? Even then, you’re crazy. 
    Amazon's company song should be...

    "When amazon rules the world..."

    Something that Apple has never set out to do.
    Why should it be Apple's goal to rule the world? Apple's goal is to engineer and produce products that changes peoples lives. It's not how many of something they sell, its what it does, how it changed someone's life, etc. If all you care about is quantity and how high Apple's stock price is then you're into Apple for all the wrong reasons. 

    Amazon will eventually screw itself and end up in many legal battles with the government(s). It's what happens when all you set out to do is rule the world. 
    Apple's goal is to send as much of your money to Wall Street as it possibly can.

    Everything else is just a means to an end.  Don't kid yourself.
  • Reply 32 of 32
    SpamSandwichSpamSandwich Posts: 33,407member
    Nice bump up for AAPL this morning.
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