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

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Comments

  • Reply 21 of 88
    Of course the value of the market capitalization isn't available for Apple's use. It doesn't benefit the company itself but it benefits the shareholders aka the owners of the company.

    Microsoft has a market capitalization of 616B in 1999. Adjusted for inflation, it's over 850B. So Apple still has a way to go before they beat that record. And Microsoft had that market cap while having a PE of 73 while Apple PE is 17.43. So Apple's growth is obviously a lot more sustainable than Microsoft.

    Honestly the market completely mispriced Apple for the past 2 years. It was a once in a lifetime opportunity to get this type of return with almost no risk. People always say I wish I invested in Apple when the iPhone came out. Well Aapl stock basically rewound time for the past two years to let investors jump in at a phenomenal entry point and yet plenty of people missed the chance.
  • Reply 22 of 88
    auxioauxio Posts: 2,518member
    Quote:
    Originally Posted by daveinpublic View Post



    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.

     

    I think some people just need to be against the top company in any industry -- trying to set themselves apart from the masses or something.  I mean, yeah sure, there are plenty of people who buy Apple products to be fashionistas.  The same people who buy a Louis Vitton handbag and whatnot -- mindlessly buying expensive items to show off and brag.  So this does create a certain level of animosity towards all Apple customers.

     

    However, if you're a technically minded person and look at what Apple has done over the last 15 years, you cannot deny that they have built a solid technology foundation to back up their brand: BSD UNIX, OpenGL-based rendering, WebKit, GCD, CoreAnimation, retina displays, multi-touch and gestures, clang/LLVM, Swift, Metal, etc.

     

    I cannot think of another technology company that has been at the forefront of bringing emerging technologies to consumer products for as long as Apple.  Not just creating a series of beta-quality products for the tech crowd like Google, but taking the time to design and polish them into something accessible and usable by everyone.

  • Reply 23 of 88
    quanster wrote: »
    Of course the value of the market capitalization isn't available for Apple's use. It doesn't benefit the company itself but it benefits the shareholders aka the owners of the company.

    Microsoft has a market capitalization of 616B in 1999. Adjusted for inflation, it's over 850B. So Apple still has a way to go before they beat that record. And Microsoft had that market cap while having a PE of 73 while Apple PE is 17.43. So Apple's growth is obviously a lot more sustainable than Microsoft.

    Honestly the market completely mispriced Apple for the past 2 years. It was a once in a lifetime opportunity to get this type of return with almost no risk. People always say I wish I invested in Apple when the iPhone came out. Well Aapl stock basically rewound time for the past two years to let investors jump in at a phenomenal entry point and yet plenty of people missed the chance.

    People who are distracted or have no balls will always find an excuse. AAPL has less risk than govt bonds in my book. And the gov could use an operations expert like Tim Cook somewhere in the mix. Anything but the Constitution/Bill of Rights would be fair play for me.
  • Reply 24 of 88
    Looking up historical records, IBM comes up as having had the largest modern, (recent), market cap value when adjusted for inflation. That was in the 1970's and would be approx 1.3 trillion in todays dollars.

    So Apple would have to double from here to eclipse that.
  • Reply 25 of 88
    Quote:

    Originally Posted by lkrupp View Post

     

    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.


    it's continuing to rise...I'm comfortable going ahead and rounding to 2/3 of a trillion.

  • Reply 26 of 88
    Can't keep going up. Bound to be a correction at some point.
  • Reply 27 of 88
    mvigodmvigod Posts: 172member

    First let me state I'm an apple fan and am short PUTS (for those who don't know options it means it is a bullish position - I do want the stock to go up or stay up for me to make money).  I however am not long actual shares for reasons I will share.  

     

    Apple's market cap today is huge.  It now requires enormous profits not just for 2015, 2016 but for the next 8 to 10 years.  It has to at least sustain its current revenue and profits for that entire period.  Ok let's move on.

     

    Apple is becoming a one product company.  In general this is never a good thing.  All companies diversify because they know at some point that one product won't provide growth and will also contract.  Even apple is desperately trying to do this.  Beats, Apple Pay, etc.  The problem with everything Apple does to diversify is that even businesses that throw a few billion here or there don't move the needle against iphone or the huge market cap.  

     

    I'm a Buffett follower and invest by his two sayings "be greedy when others are fearful" and "be fearful when others are greedy".  With apple at an all time high and essentially a one product company I'll let you decide which end of the spectrum apple stock is at right now.  That is for you to judge yourself.

     

    Some other points.  iWatch is unlikely to be the monster hit that iphone or ipad were.  As yourself if you will buy one for $400 bucks.  Some will.  Most won't.   Also won't work with 90% of the market (anything not an iphone).  Another limiting factor.

     

    Next ipad is in decline.  The best analyst believes 40% in Q1 next year decline.  He is tapped into supply chains,  I'm sure you have read about this in the last 24 hours.  iPhone 6 now must carry even more weight AND fill that gap left by falling ipad.  This will offset some iphone growth in itself.

     

    Why did iphone 5 do so well?  It was a bigger screen over the 4.  Why is iphone 6 doing well?  It is a bigger screen over the 5.  Why will iphone 7 do so well or the 6S?  What will be the must have reason to upgrade vs lengthen upgrade cycle another year or two as people do now with ipads?  I believe we'll see peak iphone here with the 6 series.  Even if the 6S and 7 just flatline year over year and ipad still declines than apple is no longer in growth mode.  They have a lot of market cap to hold up here remember.

     

    So in conclusion you have to decide for yourself if you are invested in apple if or when you want to exit.  I believe apple will do well over the next decade but that may not mean shareholders will.  Apple could go to a 400B market cap and still be the largest company in the world but investors lose 35% from today's quote if this happens.  Remember a 400B apple is no slouch by any means and they are still selling iphones, ipads and macs.  Apple Pay is a non event though.  They make 15 cents for each $100.  It will be over 10 years for them to hit the required revenues to make just $1B on this.

  • Reply 28 of 88
    pazuzupazuzu Posts: 1,728member
    Great- so give back Apple- make this Blak Friday worthwhile.
  • Reply 29 of 88

    of minor interest to stock buffs- microsoft has passed exxon as the second largest market cap today.

  • Reply 30 of 88
    Says it much better than I can:

    Jeremiah was a bullfrog, he was good friend of mine
    I never understood a single word he said
    But I helped him drink his wine
    He always had some mighty fine wine, sing it

    Joy to the world, all the boys and girls now
    Joy to the fishiest in the deep blue sea
    And joy to you and me

    And if I were the king of the world
    I tell you what I would do
    I'd throw away the cars and the bars in the world
    And I'd make sweet love to you, sing it now

    Joy to the world, all the boys and girls now
    Joy to the fishes in the deep blue sea
    Joy to you and me

    Yah know I love the ladies, love to have my fun
    I'm a hard knock flier and a rain bow rider
    A straight shootin' son of a gun
    I said a straight shootin' son of a gun

    Joy to the world, all the boys and girls
    Joy to all the fishes in the deep blue sea
    Joy to you and me


    [VIDEO]
  • Reply 31 of 88
    lkrupplkrupp Posts: 10,176member
    Quote:

    Originally Posted by battiato1981 View Post



    Looking up historical records, IBM comes up as having had the largest modern, (recent), market cap value when adjusted for inflation. That was in the 1970's and would be approx 1.3 trillion in todays dollars.



    So Apple would have to double from here to eclipse that.



    Yep, Apple is such an Epic Fail. Unbelievable, right? Windows FTW!

  • Reply 32 of 88
    lkrupplkrupp Posts: 10,176member
    Quote:

    Originally Posted by Rogifan View Post



    Anyone know what Microsoft's market cap was at its highs in the late 90s?



    It was higher so Apple is a failure, right?

  • Reply 33 of 88
    Looks like after the peanuts dividend aapl is recovering a bit. I guess if the daily percentage keeps increasing it's time to buy again. Though right now the gains are still modest. Gone are the days of 2011/2012 when it was skyrocketing.
  • Reply 34 of 88
    jungmarkjungmark Posts: 6,924member
    mvigod wrote: »
    First let me state I'm an apple fan and am short PUTS (for those who don't know options it means it is a bullish position - I do want the stock to go up or stay up for me to make money).  I however am not long actual shares for reasons I will share.  

    Apple's market cap today is huge.  It now requires enormous profits not just for 2015, 2016 but for the next 8 to 10 years.  It has to at least sustain its current revenue and profits for that entire period.  Ok let's move on.

    Apple is becoming a one product company.  In general this is never a good thing.  All companies diversify because they know at some point that one product won't provide growth and will also contract.  Even apple is desperately trying to do this.  Beats, Apple Pay, etc.  The problem with everything Apple does to diversify is that even businesses that throw a few billion here or there don't move the needle against iphone or the huge market cap.  

    I'm a Buffett follower and invest by his two sayings "be greedy when others are fearful" and "be fearful when others are greedy".  With apple at an all time high and essentially a one product company I'll let you decide which end of the spectrum apple stock is at right now.  That is for you to judge yourself.

    Some other points.  iWatch is unlikely to be the monster hit that iphone or ipad were.  As yourself if you will buy one for $400 bucks.  Some will.  Most won't.   Also won't work with 90% of the market (anything not an iphone).  Another limiting factor.

    Next ipad is in decline.  The best analyst believes 40% in Q1 next year decline.  He is tapped into supply chains,  I'm sure you have read about this in the last 24 hours.  iPhone 6 now must carry even more weight AND fill that gap left by falling ipad.  This will offset some iphone growth in itself.

    Why did iphone 5 do so well?  It was a bigger screen over the 4.  Why is iphone 6 doing well?  It is a bigger screen over the 5.  Why will iphone 7 do so well or the 6S?  What will be the must have reason to upgrade vs lengthen upgrade cycle another year or two as people do now with ipads?  I believe we'll see peak iphone here with the 6 series.  Even if the 6S and 7 just flatline year over year and ipad still declines than apple is no longer in growth mode.  They have a lot of market cap to hold up here remember.

    So in conclusion you have to decide for yourself if you are invested in apple if or when you want to exit.  I believe apple will do well over the next decade but that may not mean shareholders will.  Apple could go to a 400B market cap and still be the largest company in the world but investors lose 35% from today's quote if this happens.  Remember a 400B apple is no slouch by any means and they are still selling iphones, ipads and macs.  Apple Pay is a non event though.  They make 15 cents for each $100.  It will be over 10 years for them to hit the required revenues to make just $1B on this.

    The "best" analyst says it may be a 40% drop from 4Q to 1Q which is an absurd comparison as the 4Q is the holiday qtr which is traditionally where Apple sells a lot of shit.

    People upgrade phones on a 2 yr cycle usually. Those that do not have the 6 will get the 7 next year.
  • Reply 35 of 88
    Apple's been killing it. Fandroid Trolls have been hiding under their rocks. All is well.

    Nah, I think they're too exited that Samsung is going to take on iBeacons with their newly announced, wait for it, Proximity. https://placedge.samsung.com

    1000


    As for the stock, it will fluctuate as usual, but rise all the same. Here's a toast to Apple, toasting the 'competition'.

    Cheers
  • Reply 36 of 88
    Quote:

    Originally Posted by jungmark View Post





    The "best" analyst says it may be a 40% drop from 4Q to 1Q which is an absurd comparison as the 4Q is the holiday qtr which is traditionally where Apple sells a lot of shit.



    People upgrade phones on a 2 yr cycle usually. Those that do not have the 6 will get the 7 next year.

     

    Not really true though.  50% of the installed iphone base right now is iphone 4.  that means upgrade cycles are much longer in fact. I personally even know 4 people that I've been telling them to get an iphone 5, 5S and now iphone 6.  3 finally bit the bullet and got a 6.  These were 4's which means 50% of the upgrade cycle is at 4 years.  I think as we go out a couple years we will see the average trend lengthen further.  I even have one friend who still has his 4 and says he has no reason to upgrade.  LOL.  I tried to convince him but no deal.  

    Also to correct you Ming Chi Kuo of KGI is calling for YEAR OVER YEAR drop of ipad on the order of 40%.  Not quarter over quarter as you suggest.  read on and trade accordingly: 

     

    http://www.businessinsider.com/apple-ipad-sales-forecast-to-fall-2014-11

  • Reply 37 of 88
    gimarbazat wrote: »
    Looks like after the peanuts dividend aapl is recovering a bit. I guess if the daily percentage keeps increasing it's time to buy again. Though right now that gains are still modest. Gone are the days of 2011/2012 when it was skyrocketing.

    It was "skyrocketing" back then because stocks were still climbing out of the 2008 market crash (and there's no guarantee we won't have another massive crash, incidentally).
  • Reply 38 of 88
    philboogie wrote: »
    Nah, I think they're too exited that Samsung is going to take on iBeacons with their newly announced, wait for it, Proximity. https://placedge.samsung.com

    1000


    As for the stock, it will fluctuate as usual, but rise all the same. Here's a toast to Apple, toasting the 'competition'.

    Cheers

    Saw someone mention this in a post yesterday (?) and thought they were kidding. Good grief. ????
  • Reply 39 of 88
    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




    No... part of the increase in share price is due to the buy-back... fewer shares outstanding means each share is worth a little more.

    Stock buybacks act kinda like a reverse split to the remaining shares.  So you're idea of a $700B "real" value doesn't really wash.

  • Reply 40 of 88
    Originally Posted by TheWhiteFalcon View Post

    Then they end up having to defend things like this:


     

    Phew, just a photoshop. You never can tell with convertibles these days.

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