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Apple Becomes Most Valuable Publicly-Traded Stock Ever

zorinlynx said:
S-.. sSssss... Ssssell. Sell... I dunno.

I'm getting nervous that this might be a bubble. I got in around $320, with a few additional buy-ins along the way. How long can this really keep up? It feels like a bubble.

I'd be pissed off if I sold it all, only for it to get to $700, then $800.... I guess that's the nature of investing though.
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Be smart, take the money now while the getting is good. Once the bubble pops you'll have nothing but regrets.
 
Why doesnt Apple make more acquisitions with all this cash? Apple isn't so far ahead of Android. Its getting silly. Apple execs must see some amazing things from other companies all the time. There been some rumors of Apple buying a search company. I don't think Apple will move along this path. I believe Apple not investing in Facebook tell us that they actually don't want to compete with Google. By next year Google+ could be popular than the big social network.
 
pandamonia said:
One big bubble ready to burst.
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Except that Apple's P/E ratio is very reasonable (15.57, and even lower if you look forward). Yes, that's higher than the "classic" P/E < 10 that investors like but it matches or is better than the P/E of many other companies (especially tech companies). Even at its current price, Apple should be a good buy.
 
pandamonia said:
One big bubble ready to burst.
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You might want to do a little research before making those claims.

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pandamonia said:
Yet its these comments that normally prove a bubble is here.
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If that's your criteria for a bubble....

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scotty321 said:
Oh, please. Tim has shown NO KNACK for innovation at all. The only thing the man has done is hire the failure known as John Browett (who is already destroying Apple's retail operations), along with another failure from United Airlines (the guy who drove United Airlines into bankruptcy). Every product that has come out so far was a product that Steve was still overseeing. Every single top level executive under Steve has now left Apple except for Scott Forstall & Jony Ives, and they're probably next to go. The meetings at Apple these days don't even involve designers & engineers anymore... they're run by "operations efficiency" people. Tim doesn't understand "products" or "innovations". Plus, have you even seen the terrible advertisements coming out of Apple these days? I'm not just talking about the "Genius" ads, I'm talking about the creepy celebrity Siri ads and the boring Retina MacBook Pro ads. Those are Phil Schiller's blunders that Tim Cook did NOT keep in check like Steve would have. If you think Tim is going to continue riding Apple high into the future, then I have a bridge to sell you.
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It's comical that you can make so many assumptions when you yourself admit that you have seen nothing from him yet...do you understand why your logic fails?

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pandamonia said:
institutional investors cant hold more than a few percent in 1 company as the company gets more valuable then the stock will have to be sold. They by far make up the biggest trades in the world and as the value gets higher the more down pressure from the biggest investors there is. This is why no major stock stays as high as it does. Look at MS.
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Microsoft pays out dividends and revenue growth has been moderate.
 
Bubble ready to burst?

pandamonia said:
One big bubble ready to burst.
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This is interesting... a bubble means that there is no reason for the growth and it is artificially inflated (Like the housing market, or now, student loans).

However, I believe that Apple Inc. has every reason to be valued so high (some would even argue that its too low). They have dominance in the exploding tablet market, they make the best selling smartphone that is expected to sell like wild fire this fall. They are revolutionizing the notebook industry with the Macbook Pro Retina, and the Macbook Air. Their market share in the personal computer industry is steadily growing. They have a solid plan for future growth, a vision for the future, and a CEO who will get them there.

Wow, this turned into a rant, but basically there are very good reasons for Apple's high market valuation. I don't think it's a bubble ready to burst.
 
scotty321 said:
I'm highly skeptical of Tim Cook's abilities, but only time will tell.
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scotty321 said:
Tim Cook is running this ship like the Titanic, though, and we won't see the results of his disaster for a few years
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scotty321 said:
Oh, please. Tim has shown NO KNACK for innovation at all. bla bla bla etc
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You'd swear Cook was fresh out of high school and hadn't worked a day at Apple until he was named CEO. I don't think your analysis of his abilities and successes is very compelling, but do you think I should sell my shares? I have my broker on the phone right now.
 
Carouser said:
You'd swear Cook was fresh out of high school and hadn't worked a day at Apple until he was named CEO. I don't think your analysis of his abilities and successes is very compelling, but do you think I should sell my shares? I have my broker on the phone right now.
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Lol. So true. All this talk about bubbles and cooks inability to lead are perplexing.

Apple has not slowed down in years. If it's a bubble, then I'm glad I'm making thousands off that bubble!
 
BC2009 said:
Right.... because the valuation of AAPL is completely based on speculation rather than revenue, earnings and assets. "Bubbles" are defined as



(see Wikipedia for multiple references on that definition).

If anything, AAPL has been the anti-bubble for years now. The P/E ratio of speculative stocks like Amazon (AMZN) is over 290. The P/E ratio for AAPL has been hovering at 14 to 16 all year (currently 15.6). The P/E ratio is even lower for AAPL if you calculate the forward P/E (i.e.: price to earnings using this year's earnings). It gets even more insane if you look at the fact that Apple has one fifth of the market capitalization in no-risk cash or cash-equivalent assets and the company has zero debt. If you subtract the cash assets from the market cap and then recalculate the P/E it falls well below 10. For reference, Google's (GOOG) P/E ratio is 20 and Microsoft's (MSFT) is about 15.4. So investors are being more speculative on GOOG and just as speculative on MSFT, despite AAPL outperforming both companies consistently quarter after quarter.

If you want an example of a "bubble", then look at Amazon (AMZN). With their 290+ P/E ratio, investors would have to see Amazon garner near 100% of all retailing (not just online retailing) in the next 10 years without drawing government regulation because of monopoly power on price controls. AMZN is the the definition of a "bubble" stock. There are no fundamental "intrinsic values" to support Amazon's stock price -- it is 100% speculation that something about Amazon's formula will one day yield Apple-like profit. On the other hand, Apple is doing "Apple-like" profit today with potential to grow in the markets they profit in considering their current share of the market and their opening up to new geographies internationally.

There's a little education in economics for you. Bubbles are about things being artificially inflated due to speculation driving demand. Nothing about AAPL stock price is speculative. If the company maintained its anemic P/E ratio and just kept increasing revenue on their current (or half their current) trajectory the stock price would break $1000 in the next 12 months.
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This analysis sounds almost reasonable, but when you dig in, it contains a few fundamental problems. First, PE ratios are not normally computed ex-cash or plus debt. Maybe they should be, but they are not. So this becomes a data point without a real basis for comparison either historically or against other stocks. Second, we should understand that PE is a backwards-looking number. It tells you nothing about the future, it registers only the market consensus regarding future earnings growth rates at any given moment. The PE for AAPL has been compressing steadily for about five years now, reflecting a market consensus (rightly or wrongly) that earnings growth rates will begin to slow, if not now then soon. You can complain about the injustice of this all you like, but you aren't going to get any satisfaction.

Third, the PE for AAPL during the big growth years for the stock during the 2000s was above 100 for quite awhile, and north of 50 for a long time. Did some describe it as a "bubble stock" during time period, and avoid it on that account? Darn right they did. Those who saw the fundamental picture differently and were willing to take a chance that they and not the market consensus was right, made a lot of money.

Finally, the entire market is about "speculation." Whenever a stock goes up or down, investors are speculating on future earnings numbers not yet known. This is the definition of speculation and this is the fundamental force in the stock markets. No speculation is more "artificial" than any other since everyone is working in the same market and making investing decisions based on what they know or think they know.
 
chrmjenkins said:
Shucks, you only have $33,020.50 in apple stock, a 5891% return on investment.
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Yup, I sold the first 50 at about $200.00 and thought I'd made a killing (which I had by most standards) FYI most stock I have brought have declined massively or gone bankrupt...
 
zorinlynx said:
I'm getting nervous that this might be a bubble.
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Only if you think Apple's current earnings might be in a bubble. Otherwise, their P&E ratio with their current earnings is below the S&P average for many non-bubble market periods.

I would be more worried about a black-swan market crash followed by hyper-inflation. Where do you put your money when it and every other investment is decreasing in value?
 
Steve would never have allowed this.

Oh, my bad, I thought someone was meant to say that on every news article MacRumors posts.
 
boronathan said:
Lol. So true. All this talk about bubbles and cooks inability to lead are perplexing.

Apple has not slowed down in years. If it's a bubble, then I'm glad I'm making thousands off that bubble!
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Oh, it might still be a bubble, I don't know. I do know that it has nothing to do with Tim Cook failing to put widgets on iOS or whatever people are crying over lately.
 
Carouser said:
Oh, it might still be a bubble, I don't know. I do know that it has nothing to do with Tim Cook failing to put widgets on iOS or whatever people are crying over lately.
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They're growing every quarter yoy by leaps and bound. I don't think it's a bubble, at least not yet.

I agree that what ppl here complain about is not what the average customer cares or even knows about.
 
When it reaches $666 they'll have gone full cycle, from selling their first product at $666, and the world's gonna end. You read it here first....
 
Impact on Patent Trial Jury...?

Anyone wonder if the timing of this could negatively impact the Apple vs. Samsung trial? Jurors hearing that Apple has become "the most valuable company on the planet" might be less sympathetic to protecting Apple's intellectual property...?

Deliberations set to start this week...
 
Better late the never.

Boy, I'm soooooo glad my annual tradition involves adding more shares to my twenty year old Apple portfolio. Getting in at just less than $20 per share, seemed awfully pricey at the time.... LOL

I'm very disappointed that the new iPhone doesn't appeal, yet I'll still be rewarded as a very loyal shareholder.

Thanks Apple :D
 
Wow, taking into account inflation, Microsoft was valued at $851 billion. That is crazy. And now its market cap is $250 billion or so. It basically has lost an entire Apple in value. Actually, I kind of wonder if that isn't entirely a coincidence since Apple makes the major OS competitor to Microsoft. Microsoft has fallen so far it is sad. I've also got some Microsoft stock. The dividend helps but it mainly just sits there in my portfolio getting mocked by my Apple stock.

I'm looking forward to my new iPhone in about a month. My stock is certainly up enough it is time to buy more Apple products to continue with this Ponzi Scheme! I could sell a single share and buy subsidized iPhones for the whole family! But I will keep the stock and allow the paper wealth to fuel my purchase.
 
If I bought apple stock in 2008 instead of my macbook pro I would have around $16,000 in apple stock instead of this super awesome macbook pro. :apple:
 
cxny said:
Yup, I sold the first 50 at about $200.00 and thought I'd made a killing (which I had by most standards) FYI most stock I have brought have declined massively or gone bankrupt...
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I wish I had got in on the GM stock a few years ago. :)
 
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