Apple Predicted to Become Trillion Dollar Company Within 12 Months

[MacRumors]

Apple's stock price has declined around 9 percent from its all-time high of $156.10 in May, but Wall Street analyst Brian White believes the recent sell-off represents "yet another buying opportunity" as investors turn their focus to the so-called "iPhone 8" rumored to launch this fall.

White believes Apple remains "among the most underappreciated stocks in the world," according to his research note distributed to clients today. A copy of the report was obtained by MacRumors.

In our view, Apple's quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company's raised capital distribution initiative, depressed valuation and new innovations as showcased at WWDC. We still believe Apple remains among the most underappreciated stocks in the world.

White, an Apple bull, added that the upcoming iPhone cycle is setting up Apple to reach his $202 price target over the next 12 months, which would value the iPhone maker as over a trillion dollar company based on market capitalization. Apple's current market capitalization is around $737 billion.

Similar to the bottoming process in Apple during the summer of 2013 that drove a strong rally into the spring of 2015, we believe the bottom in the stock during May 2016 and the upcoming iPhone cycle is setting up Apple to reach our $202.00 price target over the next 12 months.

In May, RBC Capital Markets analyst Amit Daryanani also said Apple could reach or exceed a trillion dollar market cap within 12 to 18 months, with a stock price of $192-$195. Like White, Daryanani said the "iPhone 8" will be a major catalyst towards Apple's path to a trillion dollar valuation.

White maintains the highest price target for Apple's stock among all institutional analysts. AAPL closed at $142.73 on Thursday.

Article Link: Apple Predicted to Become Trillion Dollar Company Within 12 Months

 

[Sunny1990]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

 

[Jsameds]

One trillion dollars, mwhahahhaaaaa, mwwwaaaaaaahhhaaaaaa, mwahahhahhaaa!!!

[EDIT] Pic link dead, updated pic to one that works..

 

[Red Oak]

White has had this $202 12-month price target for the last six+ months. So, the clock keeps getting reset

The $1 trillion valuation does not take into account the potential of the massive buyback opportunity from repatriation. Apple could in one step purchase over 1 billion shares, bringing its share count closer to 4 billion. The stock would have to hit $250 to achieve a trillion valuation

Also, if corporate tax reform drops the tax rate from 35% to 15-20%, that will fundamentally impact Apple's valuation as well. A big if given how things are going

 

[Starflyer]

This is great for all the retirement portfolios that depend on APPL doing well.

 

[Winni]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

Well, their success clearly confirms that they obviously produce products that people WANT. But seriously - where and how exactly do Apple products make this WORLD a better place...? And those gigantic earnings are just sitting unethically on foreign bank accounts, doing nothing for anybody - even by capitalistic standards, that's a useless waste. The money that Apple, Microsoft and other mega-corporations are stock-piling just to evade taxes could REALLY solve a lot of problems on this planet and could REALLY turn this world into a better place. But instead, we applaud them for doing absolutely nothing with it. That's not just sick, that's revolting.

 

[BruceEBonus]

I reckons this Brian wossisface is a bit of a 'White' elephant goin' by 'is latest revelations. Ah. 'Ang on. Here he is now. '

''Oi, Brian! 'Ere! Hey! Over 'ere, mate. Ain't you the bloke who came out with that trillion dollar quip about Apple valuation, yeah?''

''Yes. Yes, that was me. Why?''

''Mate. If that little gem is the best you can come out with then how about we come to you first next time we need an opinion as opposed to current set up where you come round to us first, yeah? That sound ok with you, yeah?'

''Well. Not really. My opinion is actually highly respected actually and ... ''

''Yeah. Sounds like it and all. See y'around, Bri! If you can get paid for coming out with that old waffle then all credit to ya. Pity I can't do it innit? Be lucky Bri. Cheerio mate.

Right then. Ok everybody any other half arsed claims, no? Good. I say we break for lunch and come back after that. Lavvly. Great. Sorted.''

 

[576316]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

Hmm. I think it's come mostly from making products socially desirable, and overcharging to maintain massive profit margins. Apple wouldn't be half the value if they products were priced reasonably.

 

[Starflyer]

Well, their success clearly confirms that they obviously produce products that people WANT. But seriously - where and how exactly do Apple products make this WORLD a better place...? And those gigantic earnings are just sitting unethically on foreign bank accounts, doing nothing for anybody - even by capitalistic standards, that's a useless waste. The money that Apple, Microsoft and other mega-corporations are stock-piling just to evade taxes could REALLY solve a lot of problems on this planet and could REALLY turn this world into a better place. But instead, we applaud them for doing absolutely nothing with it. That's not just sick, that's revolting.

Explain how it's unethical?

 

[sudo1996]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

I'd rather people not be zombies on their smartphones. I'd give up my iPhone for that.
[doublepost=1499435145][/doublepost]

Hmm. I think it's come mostly from making products socially desirable, and overcharging to maintain massive profit margins. Apple wouldn't be half the value if they products were priced reasonably.

They're priced at whatever will make them the most profit, (profit per sale) X (number of sales). What's unreasonable about that? If they overcharged, they'd lose profit.
[doublepost=1499435195][/doublepost]"Predicted to become trillion dollar company." This never means anything. If everyone thought this, it would already be a trillion dollar company. The stock price is what it is right now for reasons.

 

[autrefois]

After they hit the trillion dollar mark, they will finally have enough money to phase out those 5400 rpm hard drives.

EDIT — I meant 5400 rpm. Sorry for this mistake!

 

[Starflyer]

After they finally hit the trillion dollar mark, they will finally have enough money to phase out those 5200 rpm hard drives.

Now that is what's unethical =P

 

[Asclepio]

the Herbalife of tech

 

[Avieshek]

Trillion-dollar company, by saving tax from 5400rpm hard drives.

 

[MacsRgr8]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

And, don't forgot Apple went almost bankrupt in 1996.
Truly amazing story.

 

[RogueWarrior65]

Back in the early 1990s, I worked for a large toy company overseeing the companies few Macs. Everyone in IT said that Apple was a dead company. Yesterday, Microsoft announce that they are laying off 3000 people. *points and laughs*

 

[AFEPPL]

Im not sure how people losing their jobs is remotely something to make fun at...
shame on you.

 

[EvilEvil]

Maybe they can finally hire some competent software and UX designers.

 

[OldSchoolMacGuy]

Any people laughed when I purchased their stock at around $3 a share.

 

[Spectrum]

Maybe they should start paying a bit more tax...?

 

[e-coli]

Well, their success clearly confirms that they obviously produce products that people WANT. But seriously - where and how exactly do Apple products make this WORLD a better place...?

I FaceTimed with my dad the day before he succumbed to cancer. I live half a country away, and we spoke regularly with our miracle little iGadgets. I bought him an Apple Watch to remind him of his hundreds of appointments and prescriptions and so he could monitor his sleeping and arrhythmia. I frequently watch the 4K video I shot of him and my family, and it's almost like being there again. I recorded voice notes of some of our conversations, and some days it sure is nice to hear his voice again.

Be as cynical as you want, but Apple's products have certainly made my world better. I'm grateful to have them.

 

[kingalexthe1st]

"Predicted to become trillion dollar company." This never means anything. If everyone thought this, it would already be a trillion dollar company. The stock price is what it is right now for reasons.

Agreed. Stocks are priced for what the market thinks the company is worth in the future, not right now.

 

[Rodney Dangerfield]

One of the few big companies in the world who DESERVE their earnings because it is based on products that people want and make the world a better place. Well done Apple

...Living well costs $$$

 

[Carnegie]

Well, their success clearly confirms that they obviously produce products that people WANT. But seriously - where and how exactly do Apple products make this WORLD a better place...? And those gigantic earnings are just sitting unethically on foreign bank accounts, doing nothing for anybody - even by capitalistic standards, that's a useless waste. The money that Apple, Microsoft and other mega-corporations are stock-piling just to evade taxes could REALLY solve a lot of problems on this planet and could REALLY turn this world into a better place. But instead, we applaud them for doing absolutely nothing with it. That's not just sick, that's revolting.

I don't get the unethical part. If anything, what's unethical - as well as arrogant and misguided - is the U.S. government taxing economic activity which legitimately occurs outside of the United States - i.e., extraterritorial taxation.

That said, the money in question is not "doing nothing for anybody." Money, for the most part, isn't ever doing nothing unless it's being held in physical form - e.g., if you have thousands of dollars squirreled away under your mattress. (If it isn't being spent) it's either invested in something or loaned to someone, in which case they most likely are doing something with it. Money sitting in a back account is doing something, it's just that the account holder isn't the one deciding what it's doing.

Apple's money is doing lots of things. It's loaned to various governments, it's loaned to people (through mortgage-backed securities) to facilitate their buying houses. A large portion of it is loaned to other companies and thus helps fund what they are doing - expanding operations, making acquisitions, building things, paying employees, etcetera.

Earnings not being repatriated doesn't mean that they are sitting in a foreign bank account. Apple's unremitted earnings, e.g., can be in U.S. bank accounts or in U.S.-based financial instruments. Much of it is loaned to the U.S. government and other U.S. businesses (directly, not because it's in a foreign bank which has loaned it to them).

 

[TheTruth101]

Well.... any company that manages to sell a few iMacs Pro at that price will achieve that goal in no time.