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View Full Version : APPL Passes 10% of all NASDAQ Value


cambookpro
Feb 9, 2012, 11:45 AM
http://9to5mac.com/2012/02/09/aapl-passes-10-of-all-of-nasdaq-value-as-analysts-target-half-a-trillion-dollar-valuation/

Apple have hit an all time stock high. Currently $496 per share.
Means Apple is currently worth over $60bn more that Exxon Mobil (at this moment) and worth more that Microsoft and Google combined.

Thoughts?

rdowns
Feb 9, 2012, 11:58 AM
Market is smiling at AAPL today. Three analyst upgrades coupled with credible iPad 3 announcement and it's popped about $19. Incredible. My portfolio runneth over.

Rodimus Prime
Feb 9, 2012, 12:00 PM
I think this is the argument they are using to revalue the NASDAQ and how it is figured. One company is to large of a percentage of it and as such its swings either way has way to great of an effect to make the index worth anything.

neiltc13
Feb 9, 2012, 12:55 PM
Market is smiling at AAPL today. Three analyst upgrades coupled with credible iPad 3 announcement and it's popped about $19. Incredible. My portfolio runneth over.

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

rdowns
Feb 9, 2012, 01:19 PM
I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

Does anyone really know what moves the market? There were 3 upgrades by analysts and as hard as it may be to believe, people follow their comments and act.

Might also have some who think some iPad 3 sales might happen in the current quarter and a bigger affect on earnings than an iPad 2 nearing its first anniversary.

*LTD*
Feb 9, 2012, 01:39 PM
I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

The anticipated market effects thereof (and to Apple's bottom line.) It's an iPad. And a new one at that. iPad proliferation in 2012 will be insane. People understand this.

Rodimus Prime
Feb 9, 2012, 02:06 PM
I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

Apple seems to have more from emotional views than any other company. Great for pushing it up but at the same token that can become VERY VERY painful.

h00ligan
Feb 9, 2012, 04:15 PM
We will obviously see an ebb and flow, but I wouldn't be surprised for aapl to finish north of $600 this year.

dukebound85
Feb 9, 2012, 04:17 PM
I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

BaldiMac
Feb 9, 2012, 04:19 PM
I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

By what measure?

quagmire
Feb 9, 2012, 04:24 PM
I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

Not for the people who bought AAPL back in 2004 when it was only $20 a share..... I wish I had money to buy AAPL then. I would be swimming in cash. ;)

rdowns
Feb 9, 2012, 04:29 PM
I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo


Based on what, headlines? I bought in at $11.24 and have added to my position several times, most recently about 4 months ago. If you really know Apple and follow the stock, you wouldn't say that.

Melrose
Feb 9, 2012, 05:07 PM
They are way, way, way overvalued imo

The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

dukebound85
Feb 9, 2012, 05:12 PM
The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

TwinCities Dan
Feb 9, 2012, 05:15 PM
Based on what, headlines? I bought in at $11.24 and have added to my position several times, most recently about 4 months ago. If you really know Apple and follow the stock, you wouldn't say that.

Wow! I felt lucky that I hopped in around $80. :cool:

BaldiMac
Feb 9, 2012, 05:17 PM
True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

So, you have no facts or experience. You can just tell. :rolleyes:

You would say that

Of course, he did back his opinion up much better than you did.

h00ligan
Feb 9, 2012, 05:18 PM
True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.



You would say that

Do you think google should be priced higher than apple?

Rodimus Prime
Feb 9, 2012, 05:20 PM
The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

dukebound85
Feb 9, 2012, 05:22 PM
So, you have no facts or experience. You can just tell. :rolleyes:



Of course, he did back his opinion up much better than you did.

No need to get hostile:cool:

Did I not merely just give my opinion on it? It is not without precedent that companies rise...then fall. They can't rise forever. I am not alone in this line of thought too. Merely google Apple being a bubble

Of course LTD would back it up with whatever Apple is doing:rolleyes: Though him saying ipad is hardly what I call backing up

vvswarup
Feb 9, 2012, 05:42 PM
Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

Price does not equal value. A $5 stock may be overvalued. A $1000 stock can be undervalued. Investors buy stock based on what they expect the company to earn in the future.

A common ratio in investing is the price/earnings (P/E) ratio. Apple's P/E is around 14. That means that investors are paying $14 for every dollar that Apple earns. Another way of looking at is that if Apple's earnings were to stay the same for the next 14 years, they will have earned an amount equal to today's stock price.

I am interested in knowing what Yahoo!'s earnings multiple was at the time it was trading at $300 per share.

----------

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.



You would say that

How do you define value? Because price does not equal value. In the words of Warren Buffett, price is what you pay and value is what you get.

Explain what you mean by value.

h00ligan
Feb 9, 2012, 06:20 PM
Google p/e 20.55
Amazon p/e 135.04
Netflix p/e 29.xx
Microsoft 11.15

Dow average 15-25

Tech sector 16.30

Apple's p/e is not just fine, it's good. It's fallen from 32.xx this time last year.

*LTD*
Feb 9, 2012, 06:30 PM
Of course LTD would back it up with whatever Apple is doing:rolleyes: Though him saying ipad is hardly what I call backing up

Because they're doing everything right. You think you've seen growth?? This is nothing. The kind of growth Apple will experience over the next 5 years will be unprecedented. LOL jokes on you if you can't fathom what the iPad means to the industry and just where it's headed over the next few years. It'll put the iPod phenomenon to absolute shame.

rhett7660
Feb 9, 2012, 06:58 PM
Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

So you are comparing the dot com bust to today's market???

:confused:

Melrose
Feb 9, 2012, 09:10 PM
True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

True, but Apple has been sustaining this trend for many years now. I still wouldn't rush out to buy any, but it doesn't give any hint of going anywhere soon.

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

I'd hardly call Apple overvalued, though. They have a solid record of introducing well-received, well-liked products with strong repeat buyers. They've hardly cropped up overnight, and if they fail it's likewise not going to happen overnight.

Comparing a successful corporation to a silly fad is a bit of a stretch. The dot-com bubble was in and out in just a few years. Apple has been innovating since they incorporated.

thejadedmonkey
Feb 9, 2012, 09:17 PM
You know, they must be doing something right! :eek:


:D

malman89
Feb 9, 2012, 09:36 PM
Market is smiling at AAPL today. Three analyst upgrades coupled with credible iPad 3 announcement and it's popped about $19. Incredible. My portfolio runneth over.

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

I would sell some off and diversify. Price is going to tumble (not seriously, but still fall) when it comes out with 'just' a dual core A6 when analysts are hoping for a quad core. Even if it's sufficiently fast and powerful enough.

Still worth hanging on. There's no sign that it can't do anything but eventually go up.

wonderspark
Feb 10, 2012, 12:19 AM
Nobody knows what will happen. Take your guesses and play accordingly. Some crazy event could send it way higher, or tumbling down. Maybe some patent lawsuit will hurt Apple, or maybe some new application for the iPad will replace water, air and toilet paper all at once.

There's some method to the madness in the market, but it's a system built on winners and losers... there are always both.

whooleytoo
Feb 10, 2012, 05:02 AM
I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

I agree. The stock price seems to be tied to performance versus expectation. (So if a company makes a loss of $100m, when a loss of $200m was expected, their stock price could go up; while if a company makes a profit of $100 when a profit of $100 was expected, their stock price would go down).

The release of the iPad 3 isn't a surprise, nor have there been any real surprises in the technical details we've seen so far, so I'm not sure why these rumours should drive the stock price up. It's just business as usual for Apple.

BaldiMac
Feb 10, 2012, 08:02 AM
No need to get hostile:cool:

:D Of course there is! Do you see my avatar! ;)

Did I not merely just give my opinion on it? It is not without precedent that companies rise...then fall. They can't rise forever. I am not alone in this line of thought too. Merely google Apple being a bubble

It's not really an opinion to say that it will eventually, some day, for some reason fall. Duh.

But there is a difference in saying that and saying it is overvalued without any context or evidence.

Of course LTD would back it up with whatever Apple is doing:rolleyes: Though him saying ipad is hardly what I call backing up

Sure, but that is more than you gave to back your statement. Apple is nowhere close to saturation in three of the four markets that it is primarily competing in (iPod being the exception). The iPad is growing faster than the iPhone! And there is plenty of reasons to think that Apple could be successful in a fifth market as well (TVs). There is a tremendous amount of room for growth and every indication that they will continue to grow in the near future.

dukebound85
Feb 10, 2012, 10:43 AM
:D Of course there is! Do you see my avatar! ;)



Haha rest assured. Never ended up going to Duke. In fact, was well into college when I joined MR with this screenname. Why, no idea lol

Though that game the other night....crazy

AppleScruff1
Feb 10, 2012, 11:02 AM
Because they're doing everything right. You think you've seen growth?? This is nothing. The kind of growth Apple will experience over the next 5 years will be unprecedented. LOL jokes on you if you can't fathom what the iPad means to the industry and just where it's headed over the next few years. It'll put the iPod phenomenon to absolute shame.

Please cite your credentials. Your post as if you're a business, marketing and stock expert, far beyond those that actually make their living at it. You know more about Apple than Jobs did, have privy toall the inside info info, they consult you for all projects, etc. I think you owe it to the community here to reveal yourself. Who are you? Tim Cook? Scott Forstall? By my calculations you must be one of those two. Is that you, Scott?

*LTD*
Feb 10, 2012, 11:42 AM
Please cite your credentials.

You don't need credentials to see the obvious.

dukebound85
Feb 10, 2012, 11:52 AM
You don't need credentials to see the obvious.

Says the biased observer

*LTD*
Feb 10, 2012, 12:01 PM
Says the biased observer

The facts happen to have a pro-Apple bias. Deal with it.

This is obvious stuff.

Here's me back in April:

http://forums.macrumors.com/showpost.php?p=12394856&postcount=29

My post history is there for everyone to see.

You don't have to a be a super-analyst to see the writing on the wall, and to predict tomorrow's events from the combined events of today, yesterday, and 2-3 years ago. And some of it is just common sense. When RIM in 2009 sat on their behinds and did nothing, it was easy to see where they would end up a couple of years later with the same management.

Unless a thermonuclear device drops on Cupertino, you can bet all your stock in RIM that Apple has their ish together, and already has the game figured out for the next 5 years, and *at least* the next two years on the momentum of consumer demand alone. The money platform is the iPhone, but the growth platform that will take Apple to the next level is the iPad.

AppleScruff1
Feb 10, 2012, 04:14 PM
You don't need credentials to see the obvious.

To spout off daily the way you do, I think you do need credentials since your intelligence is apparently far above those who are actually involved in the industry. It would lend credibility to your argument.