Apple regains spot as most valuable US company as shares rebound

Posted:
in AAPL Investors edited February 6
Apple on Wednesday reclaimed the crown of most valuable company in the U.S., hitting an $821.59 billion market cap as shares climbed to $174.24 at the end of trading.

iPhone XR


The company beat out rivals Amazon and Microsoft, which reached caps of $805.70 billion and $813.48 billion, respectively. All three are now giant multinationals on which much of the global economy is dependent.

Apple shares tanked to $142.19 on Jan. 3 following an announcement that it would miss December-quarter guidance by at least $5 billion. Its final December figures, released on Jan. 29, showed $84.3 billion in global revenue.

The stock quickly rebounded as investors realized it was an opportune time to buy and Apple had already prepared people for the worst. Nevertheless shares are leagues away from a six-month high, $232.07, set on Oct. 3, 2018.

In its January revelations Apple admitted that iPhone sales took a major hit, largely because of poor performance in China. CEO Tim Cook also blamed factors like "foreign exchange headwinds," "economic weakness in some emerging markets," and even Apple's discounted battery replacement program, which saw at least 11 times more swaps than the company had planned for.

The iPhone has taken a beating in China mostly because local vendors like Huawei and Xiaomi are selling competitive phones that cost hundreds of dollars less than Apple's. Compounding matters has been a strong U.S. dollar, a weak Chinese economy, and the effects of the U.S.-China trade war.

Comments

  • Reply 1 of 11
    Regarding 11x battery swaps:

    Was that 11x more swaps than Apple had “planned for”, or rather 11x what they’d normally expect over the same time period if they werent running the discount promotion.

    I think Tim’s words implied the later, not the former. 
    muthuk_vanalingamwatto_cobra
  • Reply 2 of 11
    tzeshantzeshan Posts: 1,855member
    Apple bought back many shares after reaching one trillion dollars last year. Including those shares will make Apple value much more. 
  • Reply 3 of 11
    AppleExposedAppleExposed Posts: 416unconfirmed, member

    AI, I need to buy some AAPL shares. Can you guys run a few doom articles?


    Thanx!

    beowulfschmidtwatto_cobra
  • Reply 4 of 11
    sflocalsflocal Posts: 4,399member

    AI, I need to buy some AAPL shares. Can you guys run a few doom articles?


    Thanx!

    Back in 2008 during the big market crash, when everyone was panic selling.. I loaded up on AAPL with my co-worker/friend watching me do it.  Against his advise, and my financial adviser's advice, I loaded up on AAPL at essentially the lowest share price.  I made a 6-figure profit from it.  

    Fast forward to last week.  With my SAME co-worker/friend sitting next to me... I loaded up again on AAPL.  Sure, it will not be the same action that my 2008 purchase was, but even then I told him (he invests in the market also - badly) I told him to it's practically the same opportunity.  So once again, I loaded up on AAPL and while it's only been a few days, already made a few thousand on it.  Given how low AAPL was, anyone watching the game that goes on with this company, it was practically a no-brainer it was going up.

    Thinking my buddy was smarter this time around, I was surprised when he told me to check AAPL price and when I realized the expression on his face, I realized that once again did not take advantage of it.  I rarely jump into a particular stock, but I also see a bargain and act on it.

    Some people (especially the trolls) thump their chests with their "Apple is doomed" rhetoric from their parent's basement, others take that risk (as "risky" as AAPL was last week) and are rewarded for their patience and due diligence.  It was a fun week for me. :)
    StrangeDaysclaire1dayeneil andersonanantksundarammuthuk_vanalingamwatto_cobra
  • Reply 5 of 11
    Patience is certainly a virtue when investing. If you did not buy 🍎shares in the last week, you may have missed a good opportunity. Although buying Apple whenever is money in the bank, especially when reinvesting dividends. 
    watto_cobra
  • Reply 6 of 11
    bageljoeybageljoey Posts: 1,748member
    Regarding 11x battery swaps:

    Was that 11x more swaps than Apple had “planned for”, or rather 11x what they’d normally expect over the same time period if they werent running the discount promotion.

    I think Tim’s words implied the later, not the former. 
    My anecdotal story: I was a heartbeat away from buying my first big iPhone (I had already purchased a case for the XS Max) when someone asked why I would spend that much money when my phone was still good (6S). Battery life and a better camera said I.  He said $29 for a new battery?! Is a better phone camera worth $1,200?
    I know it is ridiculous to think that a $20 battery discount would influence thes big a purchase, but it absolutely did...
    muthuk_vanalingambeowulfschmidt
  • Reply 7 of 11
    fastasleepfastasleep Posts: 2,302member
    sflocal said:

    AI, I need to buy some AAPL shares. Can you guys run a few doom articles?


    Thanx!

    Back in 2008 during the big market crash, when everyone was panic selling.. I loaded up on AAPL with my co-worker/friend watching me do it.  Against his advise, and my financial adviser's advice, I loaded up on AAPL at essentially the lowest share price.  I made a 6-figure profit from it.  

    Fast forward to last week.  With my SAME co-worker/friend sitting next to me... I loaded up again on AAPL.  Sure, it will not be the same action that my 2008 purchase was, but even then I told him (he invests in the market also - badly) I told him to it's practically the same opportunity.  So once again, I loaded up on AAPL and while it's only been a few days, already made a few thousand on it.  Given how low AAPL was, anyone watching the game that goes on with this company, it was practically a no-brainer it was going up.

    Thinking my buddy was smarter this time around, I was surprised when he told me to check AAPL price and when I realized the expression on his face, I realized that once again did not take advantage of it.  I rarely jump into a particular stock, but I also see a bargain and act on it.

    Some people (especially the trolls) thump their chests with their "Apple is doomed" rhetoric from their parent's basement, others take that risk (as "risky" as AAPL was last week) and are rewarded for their patience and due diligence.  It was a fun week for me. :)
    Heh. I had advisor at UBS express concern that my portfolio was AAPL heavy, and that they were a "media darling" but maybe not something you should invest that heavily into. I told him I was pretty well educated on the company and wasn't worried. He recommended I check out a company called Qualcomm, to which I said "yes, I know who Qualcomm is". I put a bit of money into them for the hell of it, and while it did well for a bit, it dropped like crazy and I was able to sell it off around what I bought in for, but now they're doing terrible. Glad I didn't listen to him!
    randominternetpersonwatto_cobra
  • Reply 8 of 11
    fallenjtfallenjt Posts: 3,962member

    AI, I need to buy some AAPL shares. Can you guys run a few doom articles?


    Thanx!

    My buy price is $150 and it happened last month. Now my sell price of $180 will happen sooner than expected. That’s how I’ve been making 20% on AAPL in a short term.
    AppleExposedwatto_cobra
  • Reply 9 of 11
    The battery issue was self-fulfilling. As soon as Apple announced the swap plan people with those phones who until then had no problems decided they did and took advantage of the program. I'm not sure what the psychological condition is for having to get in on anything that is perceived as a deal. I will say that an older phone with a new battery is the same phone. I doubt anyone even noticed the throttling until someone told them. There will be a blowout quarter at some point when the people whose phones are 3 generations or more behind figure out it is not the battery.
    ronnwatto_cobra
  • Reply 10 of 11
    lkrupplkrupp Posts: 6,615member
    Glory is fleeting but once again the naysayers and haters are facing frustration. They thought they were finally like the clock that is right twice a day and that Apple was going down for good. They believed their own bitter narratives about the company and now look like a deer in the headlights as Apple recovers. Like they did the Mac, iPod, the iPhone, the iPad, Apple Music, Apple retail stores, they are predicting Apple's failure in services. After all, they say, Spotify, Netflix, and others already dominate their markets and Apple has nothing better to offer. As usual, famous last words. But they never give up and hold fast to their hopes and dreams of Apple’s irrelevancy and eventual demise.

    I’m not so much an Apple fanboy but more interested in seeing any company prove its detractors wrong. 
    watto_cobra
  • Reply 11 of 11
    AppleExposedAppleExposed Posts: 416unconfirmed, member
    lkrupp said:
    Glory is fleeting but once again the naysayers and haters are facing frustration. They thought they were finally like the clock that is right twice a day and that Apple was going down for good. They believed their own bitter narratives about the company and now look like a deer in the headlights as Apple recovers. Like they did the Mac, iPod, the iPhone, the iPad, Apple Music, Apple retail stores, they are predicting Apple's failure in services. After all, they say, Spotify, Netflix, and others already dominate their markets and Apple has nothing better to offer. As usual, famous last words. But they never give up and hold fast to their hopes and dreams of Apple’s irrelevancy and eventual demise.

    I’m not so much an Apple fanboy but more interested in seeing any company prove its detractors wrong. 
    Apple Music is doing so good.I can't imagine Q4 2019 numbers.

    They also predict doom before a product launches which is absolutely ludicrous.

    No company in history gets shitted on as much as Apple and if anyone shows the facts they're labeled a "fanboy" or "iSheeps". Your last line is the reason I love proving the iHaters wrong every year.
    watto_cobra
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