Apple projected to surpass Exxon, become world's largest market cap company

Posted:
in AAPL Investors edited January 2014
Apple's meteoric rise could see it overtake oil giant Exxon-Mobil and become the world's largest company by market value, one new analysis has projected.



Brian Marshall with Gleacher & Company sent a note to investors this week in which he raised his price target to AAPL stock to $500, up from $450. But before either of those numbers is reached, Apple could become the largest market cap company in the world when the stock hits $445, based on his initial calculations done Wednesday.



Marshall's estimate assumes that the current leader, Exxon-Mobil, would remain flat, putting Apple in a position to become the largest company in the world, in terms of market value. But with Exxon stock up more than 2 percent Thursday afternoon, that makes Apple's target now even higher.



Still, Exxon is now within sight as Apple continues to grow. Marshall noted that Apple was only about 13 percent away from overtaking the company based on aftermarket levels reached when the company reported its quarterly earnings on Tuesday. During that period, the stock briefly broke the $400 barrier.



Apple currently sits at No. 2, having passed PetroChina Co. last September. Since then, the stock has hit a new all-time high, and is up nearly $100.







As of Thursday afternoon, AAPL stock has a market cap of more than $350 billion. The Cupertino, Calif., company surpassed Microsoft in May of 2010 when its market cap reached $222 billion, but the iPhone maker has since left its rival in the dust. Microsoft's market cap as of Thursday afternoon was less than $230 billion.



But Exxon's market capitalization has also continued to grow.

Since September, when the company was valued at $313 billion, the oil company has seen its market value surge to nearly $420 billion.



Apple's earnings reported on Tuesday wowed Wall Street, led by a record 20.34 million iPhones sold. The iPad also shipped a record 9.25 million units, as both platforms saw year over year growth percentages well into the triple digits.
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Comments

  • Reply 1 of 77
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 2 of 77
    jj.yuanjj.yuan Posts: 213member
    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....



    Maybe it's time to sell?
  • Reply 3 of 77
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by jj.yuan View Post


    Maybe it's time to sell?



    Never take investment advise from internet postings, including this one.
  • Reply 4 of 77
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....



    In what way?
  • Reply 5 of 77
    umairumair Posts: 16member
    LoL it's FUNNY & Ridiculas at the same time
  • Reply 6 of 77
    bsimpsenbsimpsen Posts: 398member
    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....



    Margins on fuel are razor thin. How much gas must you purchase to put $200 profit in Exxon's wallet? I think Apple's latest quarterly profit exceeded Exxon's.



    Apple still hasn't cracked the living room and they're working to insert themselves in the Credit/Debit payment processing chain ($13T in card purchases last year) with NFC enabled iOS devices. I think there's a bit of room yet to run.
  • Reply 7 of 77
    nagrommenagromme Posts: 2,834member
    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....



    Unless people start becoming more energy efficient (you never know) and/or people start using new kinds of computers in new ways, in more parts of their lives (you never know).
  • Reply 8 of 77
    cvaldes1831cvaldes1831 Posts: 1,832member
    Quote:
    Originally Posted by bsimpsen View Post


    Apple still hasn't cracked the living room and they're working to insert themselves in the Credit/Debit payment processing chain ($13T in card purchases last year) with NFC enabled iOS devices. I think there's a bit of room yet to run.



    There's more room to run in the BRIC countries too: Brazil, Russia, India, China.
  • Reply 9 of 77
    originalgoriginalg Posts: 383member
    Quote:
    Originally Posted by Dr Millmoss View Post


    In what way?



    As you mentioned in another thread, P/E compression is still ongoing, but is Apple's P/E in the right position relative to its competitors? Apple 15.33, HP 8.89, DELL 10.25, IBM 15.03, MSFT 10.74, GOOG 21.89
  • Reply 10 of 77
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....





    It's not as crazy as it seems once you remember that Exxon pays a dividend
  • Reply 11 of 77
    paul94544paul94544 Posts: 1,027member
    I kinda understand where you are coming from on that one,



    I think though it is okay to hang on until at least 450 maybe even 500, at which point sell half... and then



    Why because there still is China, iCloud and apple HDTV to come.



    Then of course we could always ride it up and down over next few years between earnings at which point SJ will be gone and then the stock will tank 30% probably.. and buy in on rumor of a competent CEO, and sell on news of his appointment.









    Quote:
    Originally Posted by MacRulez View Post


    Unless people buy more computers than they do fuel, I smell a bubble.



    I'm grateful for how well my AAPL stock is doing, but it's getting kinda out there....



  • Reply 12 of 77
    anantksundaramanantksundaram Posts: 20,404member
    Quote:
    Originally Posted by Dr Millmoss View Post


    In what way?



    I'm guessing that: (i) He has no clue, since it's one of his typical knee-jerk, anti-Apple posts; (ii) He owns no AAPL.
  • Reply 13 of 77
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by OriginalG View Post


    As you mentioned in another thread, P/E compression is still ongoing, but is Apple's P/E in the right position relative to its competitors? Apple 15.33, HP 8.89, DELL 10.25, IBM 15.03, MSFT 10.74, GOOG 21.89



    The question should be whether it's in the right position relative to its rate of earnings growth. Even with all the shock and awe coming from Apple's last quarterly report, the stock still did not break out of its compression pattern. Earnings were up 125% over a year ago. Is the stock up anywhere close to that much? No.
  • Reply 14 of 77
    macrulezmacrulez Posts: 2,455member
    deleted
  • Reply 15 of 77
    The recent oil reserve release from our Strategic Petroleum Reserve had a tremendous impact in reducing oil prices. The government had indicated that they may do this again in the future.
  • Reply 16 of 77
    juandljuandl Posts: 230member
    You have to believe that Apple has a GREAT 10 year plan in place that should keep them on these upward pattern probably till then. Sure something drastic could happen, (S. Jobs being lost in one way or another). But the plan would still stay in place regardless.

    Can't really see anybody out there that could outsmart Apple and have them retract in any way, (still 10 years is a ways out).



    But as far as Exxon. What could the next 10 years bring? A lot of players out there are really going hard into different energy consumption. That and also Exxon is not immune to some kind of accident. BP got hit pretty hard by that.
  • Reply 17 of 77
    melgrossmelgross Posts: 33,510member
    Quote:
    Originally Posted by cloudgazer View Post


    It's not as crazy as it seems once you remember that Exxon pays a dividend



    It has nothing to do with the dividend. It has all to do with the price of oil the past year.



    If oil process come down, then the stock will drop a lot.
  • Reply 18 of 77
    jd_in_sbjd_in_sb Posts: 1,600member
    If Apple becomes the largest market cap, I hope Steve Jobs takes time to pat himself on the back. Starting in his garage, he built the most valuable company in the world.
  • Reply 19 of 77
    melgrossmelgross Posts: 33,510member
    Quote:
    Originally Posted by Dr Millmoss View Post


    The question should be whether it's in the right position relative to its rate of earnings growth. Even with all the shock and awe coming from Apple's last quarterly report, the stock still did not break out of its compression pattern. Earnings were up 125% over a year ago. Is the stock up anywhere close to that much? No.



    If this page comes through intact, we can see where some of the inequality lies. Some of the stocks that were way up today don't deserve to be. Some deserve to have gone down!



    http://markets.money.cnn.com/secure/watchlist/Index.asp
  • Reply 20 of 77
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by melgross View Post


    It has nothing to do with the dividend. It has all to do with the price of oil the past year.



    If oil process come down, then the stock will drop a lot.



    Of course it relates to the dividend - whenever a firm pays a divided the market cap drops by a related amount, normally a little under the dividend amount.



    If Exxon hadn't been paying dividends all these years they'd have even more cash than they do, and an appropriately larger market cap. Alternatively if Apple was paying out a dividend its market cap would be growing less quickly.
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