Shares of Apple reach new all-time high, break record market cap at $659B valuation [u]

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in AAPL Investors edited December 2014
Apple stock is currently trading at its all-time highest levels, putting the company at its highest-ever market capitalization level of more than $659 billion Thursday morning [updated].


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


Update: When the market opened Thursday morning, shares of Apple were up more than 1 percent, which was enough to propel the company to a new all-time high for market capitalization above $659 billion. Shares of Apple had closed at $111.25 on Wednesday, which was also an all-time closing high.
Apple's previous all-time high market cap of $658 billion was reached in September of 2012, but that was eclipsed Thursday morning.
The company's market cap as of Wednesday was north of $652 billion, which put Apple within spitting distance of the record. The previous high was reached in September of 2012, when Apple's total value was nearly $658 billion.

In comparison, Microsoft has a current market cap of $402 billion, while Google is at $375 billion, and the market values Amazon at $144 billion.

Thursday also marks the day that Apple will pay out a quarterly dividend of 47 cents per share. The dividend will be awarded to shareholders of record as of market closing on Monday, Nov. 10.

Shares of Apple fluctuated around the $100 mark until mid-October when they began to rise after the company reported a record September quarter, earning $8.5 billion in profit on sales of 39 million iPhones and 5.5 million Macs. Investors are bullish on demand for the iPhone 6 and iPhone 6 Plus, and also have high hopes for the debut of the new Apple Watch in early 2015.
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Comments

  • Reply 1 of 87
    Apple is doomed! Sell, sell, sell!




    /s
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  • Reply 2 of 87
    lkrupplkrupp Posts: 10,557member

    Apple stock is currently trading at its all-time highest levels, putting the company very close to reaching its highest-ever market capitalization level of nearly $658 billion."

     

    I prefer to think of it as $.658 Trillion. Sounds better.

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  • Reply 3 of 87
    rob53rob53 Posts: 3,351member

    Is market cap calculated based on the number of outstanding shares? If so, what do you do about all the shares Apple bought back? If market cap is only calculated based on the number of shares in Nasdaq, then it really means nothing to Apple since Apple can't touch this money. This money is there for the transfer of stocks between gamblers. Once a company goes past their IPO, all the money in the stock market belongs to the people who bought it. Correct me if I'm wrong but this is what my father-in-law told me (retire broker of 60 years when investment actually meant investing in a company).

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  • Reply 4 of 87
    lkrupplkrupp Posts: 10,557member
    Quote:

    Originally Posted by rob53 View Post

     

    Is market cap calculated based on the number of outstanding shares? If so, what do you do about all the shares Apple bought back? If market cap is only calculated based on the number of shares in Nasdaq, then it really means nothing to Apple since Apple can't touch this money. This money is there for the transfer of stocks between gamblers. Once a company goes past their IPO, all the money in the stock market belongs to the people who bought it. Correct me if I'm wrong but this is what my father-in-law told me (retire broker of 60 years when investment actually meant investing in a company).




    Bottom line, it means that Apple’s investors have been richly rewarded for their faith in the company. That’s all anybody cares about anyway other than bragging rights. My IRA thinks so and so do I.

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  • Reply 5 of 87

    Apple's been killing it. Fandroid Trolls have been hiding under their rocks. All is well.

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  • Reply 6 of 87
    rob53 wrote: »
    Is market cap calculated based on the number of outstanding shares? If so, what do you do about all the shares Apple bought back? If market cap is only calculated based on the number of shares in Nasdaq, then it really means nothing to Apple since Apple can't touch this money. This money is there for the transfer of stocks between gamblers. Once a company goes past their IPO, all the money in the stock market belongs to the people who bought it. Correct me if I'm wrong but this is what my father-in-law told me (retire broker of 60 years when investment actually meant investing in a company).

    Market cap stays the same as the value of the share bought v=back folds into every share.
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  • Reply 7 of 87
    rob53rob53 Posts: 3,351member
    Quote:

    Originally Posted by lkrupp View Post

     



    Bottom line, it means that Apple’s investors have been richly rewarded for their faith in the company. That’s all anybody cares about anyway other than bragging rights. My IRA thinks so and so do I.


    So does mine but why does anything Apple sells or doesn't sell affect AAPL? It affects Apple's bottom line but AAPL's market cap really doesn't have anything to do with Apple's actual worth. When Apple buys back AAPL stock, they retire them don't they or do they actually own shares in AAPL (I hate calling AAPL their own company because it really isn't, this is the fallacy about being public owned because the money in the stock market isn't available for Apple's use).

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  • Reply 8 of 87
    Market Cap = Shares Outstanding x Share price
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  • Reply 9 of 87
    MacPromacpro Posts: 19,873member
    Apple is doomed! Sell, sell, sell!




    /s

    LOL

    Even that *&^%%$# Cramer is saying 'buy and hold AAPL don't trade'. Could have told him that a while ago. I'm running at a 10x gain.
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  • Reply 10 of 87
    Good though this is, I hope there'll be a little correction, as I have a bob or two waiting.
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  • Reply 11 of 87
    There will be the expected pullback once the dividend is paid and the short term investors move on, but I expect a rapid recovery and march onto $120-125 in short order.
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  • Reply 12 of 87
    Same here, I just closed out a position and back in at a correction to $105.
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  • Reply 13 of 87
    rob53rob53 Posts: 3,351member
    Quote:
    Originally Posted by LibertyKRS View Post



    Market Cap = Shares Outstanding x Share price



    Thank you. This means AAPL has blown past its previous market cap because of all the shares Apple bought back. So market cap really doesn't mean all that much. If you take the current market cap ($660.791B) and add back in all the shares Apple bought, AAPL would be well over $700B+ wouldn't it? Of course, that's not how things work but it would be interesting if someone were able to calculate this.

     

    oops, now at $661.85B

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  • Reply 14 of 87
    There will be the expected pullback once the dividend is paid and the short term investors move on, but I expect a rapid recovery and march onto $120-125 in short order.

    The more volatile, the better. I remember when it was stupidly around $385 before split. Should have bought even more than I did. I know this will rile some up, but thanks Carl Icahn! The buyback pestering is working.
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  • Reply 15 of 87
    I'm surprised the Android fanatics haven't seen this coming for a long time.. In my humble opinion, I saw this coming a mile away, and I still see Apple as being miles ahead of the others in regards to being positioned for the future. It's always funny when I rub across a Android fan and they think Apple is behind, Apple is doing everything wrong.. How do they explain the insane customer satisfaction ratings, the market cap, and features like 64 bit goodness.. I guess they just like mindlessly following a particular brand.
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  • Reply 16 of 87
    Quote:

    Originally Posted by ultimatist View Post





    The more volatile, the better. I remember when it was stupidly around $385 before split. Should have bought even more than I did. I know this will rile some up, but thanks Carl Icahn! The buyback pestering is working.

     

    Yeah, as long as he stays relatively tame I'm okay. He's right that the stock is undervalued. If the Watch takes off next year I see it pushing north of $200 though, as that'll settle any lingering doubts that Apple can't innovate without Steve.

    Quote:

    Originally Posted by daveinpublic View Post



    I'm surprised the Android fanatics haven't seen this coming for a long time.. In my humble opinion, I saw this coming a mile away, and I still see Apple as being miles ahead of the others in regards to being positioned for the future. It's always funny when I rub across a Android fan and they think Apple is behind, Apple is doing everything wrong.. How do they explain the insane customer satisfaction ratings, the market cap, and features like 64 bit goodness.. I guess they just like mindlessly following a particular brand.

     

    They don't like being wrong. Apple's way shouldn't work, in their opinion. It's not the way they would do it, so it's wrong.

     

    Then they end up having to defend things like this:

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  • Reply 17 of 87
    rogifanrogifan Posts: 10,669member
    Anyone know what Microsoft's market cap was at its highs in the late 90s?
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  • Reply 18 of 87
    rob53 wrote: »

    Thank you. This means AAPL has blown past its previous market cap because of all the shares Apple bought back. So market cap really doesn't mean all that much. If you take the current market cap ($660.791B) and add back in all the shares Apple bought, AAPL would be well over $700B+ wouldn't it? Of course, that's not how things work but it would be interesting if someone were able to calculate this.

    oops, now at $661.85B

    That's not how it works because the moment the shares are reintroduced, the price should dilute. Of course there's a lag in the market, but think of it this way:

    Share price concerns your personal investment performance. Consider splits and dividends also.

    Market cap concerns perceived company growth and health. You look at Apple and say, one third of the cap is in straight cash. Are their asset values more than double their cash? They sure are, so the perception is still below true value. BUY BUY BUY!!! :smokey:
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  • Reply 19 of 87

    .

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  • Reply 20 of 87
    Quote:
    Originally Posted by rob53 View Post

     



    Thank you. This means AAPL has blown past its previous market cap because of all the shares Apple bought back. So market cap really doesn't mean all that much. If you take the current market cap ($660.791B) and add back in all the shares Apple bought, AAPL would be well over $700B+ wouldn't it? Of course, that's not how things work but it would be interesting if someone were able to calculate this.

     

    oops, now at $661.85B


    The reduction in shares outstanding would be inversely reflected by a change in share price. For example, if a company issues a large number of shares on the market, you would typically see the share price go down and inversely, when shares are bought back, the share price would typically go up. This one reason why the Street had been pushing AAPL to buy back its shares at the end of 2012 & in 2013 in effort to boost the share price.

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