Apple Share Price Hits $600, Just One Month After Hitting $500

Discussion in ' News Discussion' started by MacRumors, Mar 15, 2012.

  1. macrumors bot


    Apr 12, 2001

    Apple's share price touched the $600 mark as trading opened this morning, just a month after reaching $500/share for the first time. The stock has, however, pulled back slightly since the open and now sits at $594.

    The stock price has been on a tear ever since Apple reported blowout earnings for the first fiscal quarter of 2012, rising nearly $180/share, or close to 40%, in under two months.


    At the end of February, Apple broke through the important psychological barrier of $500 billion in market capitalization. Apple is the most valuable publicly traded company in the world, worth nearly $560 billion, more than $150 billion higher than second-place ExxonMobil.

    Apple is now within $50 billion of claiming the "most valuable publicly traded company ever" title. According to the S&P, Microsoft had a peak market cap of $604 billion during the dot-com boom in December 1999. Adjusted for inflation, Microsoft was worth $813.42 billion in January 2012 dollars at its peak, and Apple would have to reach $873/share to surpass that total.

    Article Link: Apple Share Price Hits $600, Just One Month After Hitting $500
  2. Moderator emeritus


    Mar 7, 2007
    I'm still kicking myself for not buying stock when it was less than $200 ... :mad:
  3. macrumors regular


    Nov 3, 2010
    If only I had invested in Apple back in the 80's.
  4. macrumors 603


    Oct 5, 2008
  5. macrumors 6502a

    May 12, 2009
    iDeaded myself
  6. macrumors 6502a

    Feb 24, 2011
    Surely this will have to crash at some point... no offense to Apple but this seems almost too high.
  7. macrumors 65816

    Mar 28, 2007
    Hopefully it won't be with the normal thump. To big a drop and the big investors will get spooked.
  8. macrumors 68040

    Feb 6, 2009
    Imagine how high it would be if the iPad 3 hadn't been so disappointing :rolleyes:
  9. macrumors 68040

    Lesser Evets

    Jan 7, 2006
    I'm still kicking myself for not buying stock when it was $15.
  10. macrumors 68030


    Oct 19, 2010
    Buffalo, NY
    A company's value has nothing to do with gravity.
  11. macrumors regular


    Mar 7, 2007
    Anyone got a time machine? Would love to go back a few years...
  12. macrumors member

    Apr 8, 2004
    Hmmmmm, been a while since I've heard an "Apple is dead" rumor. Remember all those? Seems like it was just a few years ago...
  13. macrumors 68030


    Oct 16, 2007
    Yeah to 1975 to meet Steve and become an original investor in the company.
  14. Avatar74, Mar 15, 2012
    Last edited: Mar 15, 2012

    macrumors 65816


    Feb 5, 2007
    It's as I told a close friend yesterday, buying AAPL is not an investment strategy. There are two important words there: "investment" and "strategy".

    Investment requires active research, and making decisions not based on speculative plays but a sound analysis of the value of the asset being acquired. Hearing about a company as ubiquitous as Apple and then jumping on board on the assumption that it'll keep going up (remember the housing market?) is not investing.

    If all of Apple's enterprise were struck by a meteor tomorrow and wiped off the face of the planet, would the average Apple speculator be well insulated from that catastrophe in the rest of their portfolio. Would their "sit and presume infinite growth" tack work with the broader market?

    If the answer to questions like these is "no" then whatever else you want to call it, it's not investing, and it's not a strategy.

    Spend less time beating yourself up for "shoulda, woulda, coulda" on a company that could have just as easily gone the other way... and start beefing up your knowledge of investing, and insulate yourself against potential catastrophic loss. THAT, and not consistent huge wins, is what will growth your wealth tremendously in the long term.

    Chasing unsustainable returns is a sure fire way to expose your principal to risk of loss... and that kind of loss compounds over time. I don't miss the AAPL boat because I have much more stable long term investments that are actually providing pretty stellar returns, very close to Apple's.... but without the volatility of the umpteen zillion speculators who are all sitting and hoping with their eyes closed and ears shut.

    I'm not saying that Apple will do terribly, but Apple's book value is well below 600 dollars per share. So the difference is owing entirely to speculation on where they will go in the future. That works perfectly as long as Apple keeps producing double digit growth infinitely... but its the "infinitely" part that is a statistical impossibility. Growth rates have to shrink at that scale because a) Apple is gaining share of wallet much faster than the number of wallets or size of wallets is increasing, and b) Apple has to produce exponentially more marginal revenue each quarter just to maintain the same growth rate mathematically.

    And then there's the Steve factor... any time a business's image and success are so inextricably tied to an iconic figure you cannot top that. No one will ever take the reins of Apple with a greater vested interest than Steve had. No visionary of Steve's caliber will prefer to work for Apple over starting his own company.

    A shrewd investor is like a good hockey player... skate to where the puck is going next, not to where it is now.
  15. macrumors regular


    Oct 30, 2009
    Not if people like you keep buying every single product they make.
  16. macrumors member


    Oct 22, 2009
    Wow, imagine how rich Forrest Gump would be today with all his Apple stock... :p
  17. macrumors member

    Dec 30, 2011
    I'm just saying thanks to Apple. After the iPhone announcement in 2007 I put my life savings into AAPL. Any spare money I had, I put into the stock. I now have 4x the original amount I started with and we haven't even begun to see the full effect of the iPad.
  18. macrumors newbie

    Apr 28, 2008
    I'm still patting myself on the back for doing just that. :D
  19. macrumors 65816


    Nov 20, 2007
    Crazy stuff. And it won't stop here either. Wonder how high it can fly?

    If the 'iTV' eventuates... And then something for your car...
  20. macrumors member

    Aug 18, 2011
    Law of large numbers?

    What happened to the Law of Large Numbers that Apple was talking about at the 300 billion market cap mark?
  21. macrumors 68030


    Oct 16, 2007
    And that bothers you why?
  22. macrumors member

    Oct 10, 2011
  23. macrumors 6502a

    Jun 3, 2006
    No but it's still a fact... sorry to burst your bubble nothing lasts forever. It may go up for the next 100 years, but it will go down sometime. I suppose after the sun explodes apple stock will keep going up, right?

    if only I wasn't a poor college student and could have invested at $50 like I wanted to :(
  24. macrumors member

    Dec 17, 2008
    I bought at 85 a few years ago. Of course, I sold 2 years ago. Made a nice little prophet, but could have been so much more.
  25. macrumors 65816


    Feb 5, 2007
    It would be a good time to take your lucky winnings out and diversify into longer term investments. Even the inflated analyst estimates are being surpassed at this point. I've stood where you stand... and it's a very precarious position to be standing in.

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