Apple Reaches $800 Billion Valuation On Path to Becoming World's First Trillion Dollar Company

[MacRumors]

Apple's stock is currently trading above the $153 mark for the first time ever, after factoring in a 7-for-1 split in 2014, giving the company a record-high market cap of roughly $800 billion. That means Apple is within $200 billion of becoming the world's first trillion dollar company.

Google Finance values Apple at closer to the $810 billion mark today, but the tool appears to be overcounting the company's number of outstanding shares, which totaled 5,225,791,000 as of last quarter. Apple's outstanding shares have declined as the company continues its share buyback program.

Apple's stock has been on an impressive run since dropping to as low as $89.47 in 2016, when the iPhone maker reported its first decline in annual revenue since 2001, and its first drop in iPhone sales ever.

Apple analyst Brian White of Wall Street investment firm Drexel Hamilton continues to believe Apple "remains among the most underappreciated stocks in the world," with "attractive upside" for investors. White raised his 12-month price target for Apple's stock to $202 today, up from an already bullish $185.

An excerpt from White's research note, distributed today and obtained by MacRumors:

Apple's valuation has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronic companies of the past. However, Apple has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together. We believe this positions Apple very well to capitalize on the trend toward more "things" becoming a computer.

White's price target implies that Apple could become the world's first trillion dollar company within the next year. Apple shares trading for $202 would currently give the company a market cap of around $1.05 trillion.

Over a dozen prominent Wall Street analysts remain upbeat about Apple's stock price heading into the second half of the year, with lots of excitement surrounding the significantly redesigned "iPhone 8" expected to launch in the fall. The smartphone's sales may be boosted by a large "supercycle" of users due to upgrade.

Apple's stock had briefly declined to as low as $144.27 last week after its second quarter earnings results fell slightly below Wall Street expectations, but the drop proved to be only a blip on the radar.

Update: Apple's market cap has reached $800 billion. This article has been updated accordingly.

Article Link: Apple Reaches $800 Billion Valuation On Path to Becoming World's First Trillion Dollar Company

 

[CrystalQuest76]

And yet with all this cash the apple executives continue to take out loans because they are unwilling to pay taxes to the country they live and work in.

 

[Z400Racer37]

One Treeelion dollarsss

 

[Born Again]

a billion dollars and we can't even get a proper mail app. let alone siri 2.0 that actually works.

 

[lostczech]

As we've all said before, they are doomed.


/s

 

[SeattleMoose]

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

 

[carestudio]

and we need them to make a real MacPro that can do Thunderbolt1,2,3, Firewire, PCIe, USB, eSATA. I hope that kind of money can give them more force to find talent engineers.

 

[alexgowers]

Honestly from that valuation and potential to cross 1 Trillion dollars you would think the products and software would reflect that. You could erase the last 3 years and apple hasn't improved a single feature IMHO they are making missteps and investors should be freaked the F out, the next iPhone if just an iteration could take down apple in one fell swoop.

I'm not saying apple has to innovate, they just have to keep products up to date and stop making errors like the iPhone 7 design and the MacPro trash can etc.

 

[44267547]

If they continue to expand in the market as they have been and deliver an exceptional product, there is a reason Apple is successful $43 billion company. They are out to make money and they're doing exactly that.

 

[viperGTS]

a billion dollars and we can't even get a proper mail app. let alone siri 2.0 that actually works.

Right, because ALL of Apple's money goes only into the development of Siri and Mail. They have absolutely NOTHING else to work on or worry about!

 

[Rogifan]

Honestly from that valuation and potential to cross 1 Trillion dollars you would think the products and software would reflect that. You could erase the last 3 years and apple hasn't improved a single feature IMHO they are making missteps and investors should be freaked the F out, the next iPhone if just an iteration could take down apple in one fell swoop.

I'm not saying apple has to innovate, they just have to keep products up to date and stop making errors like the iPhone 7 design and the MacPro trash can etc.

What error with the iPhone 7 design?

 

[Mtmspa]

And yet with all this cash the apple executives continue to take out loans because they are unwilling to pay taxes to the country they live and work in.

They pay tax in the country where the products are sold. Why should they pay another 35% US tax?

Is it okay for google and Microsoft to do the same thing or are you always anti Apple only?

 

[Mlrollin91]

And yet with all this cash the apple executives continue to take out loans because they are unwilling to pay taxes to the country they live and work in.

Apple doesn't have 800B cash, thats their value. They have 250~B cash.

 

[TMRJIJ]

Money Money Money money money.....

 

[BuddyTronic]

And yet with all this cash the apple executives continue to take out loans because they are unwilling to pay taxes to the country they live and work in.

They play by the rules, fair and square.

With interest rates so low, it makes perfect sense to have taken these loans.

If you feel you should pay more taxes than the rules say you need to, you could volunteer to pay more I suppose, but few people do that. The rules govern what is to be paid.

I think Trump is changing some of the rules so that over $1 Trillion can be brought back to the USA soon.
This will have a positive effect on the USA.

 

[viperGTS]

What error with the iPhone 7 design?

The only "error" is that it looks like the iPhone 6, which is a complaint thrown around by those who want new for the sake of new. There is no error with its design.

 

[BeefCake 15]

They need to break out the 4 commas T-Shirts

 

[IJ Reilly]

I think Trump is changing some of the rules so that over $1 Trillion can be brought back to the USA soon.
This will have a positive effect on the USA.

If Congress passes a tax holiday on repatriating overseas cash, it will have a positive effect on stockholders. On the overall economy, not so much.

 

[jayducharme]

If only I had invested in the company back in the '90s when it was going for $5 a share....

 

[iop]

I'm not putting my money into Apple shares. It's too much risk. Should the company underdeliver with the next iphone, there will be a lot of trouble. We have seen it before, we will likely see it again. Now, if only apple diverisfied their revenue sources a bit more...

If someone believes in Apple religiously, they should by all means sell their cars and houses, and dump all their money into Apple shares. There is no better way to prove the unbelievers wrong!

PS stupid emoji! Why cant i have a colon and letter P without those retarded emojis appearing out of nowhere?!? Emoji is the Comic Sans of our days!

 

[Z400Racer37]

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

While I agree that they deserve their earnings, imagine what his world would look like without the companies who everyone demonizes, who created and made possible the petrochemical revolution, and all the benefits we've derived from it, including, but not limited to Apple and it's products.

 

[CrystalQuest76]

Good.

When the bridge you are driving across collapses, remember that it crumbled because there was not enough money to fund its repairs because the apple execs kept the profits overseas but continued to get bonuses.

 

[Jakexb]

There are absolutely reasons to be optimistic, but don't take Brian White too literally.

He always has the highest of all estimated for Apple.

He's right that Apple should be valued at those levels, but the market always drags Apple's price lower than it should be. I think that's just what happens when you're on top.

 

[DocMultimedia]

Oh myyyyy. $150+ sure is pretty.

 

[Carnegie]

...

Google Finance shows Apple flirting with the $800 billion mark today, but the tool appears to be overcounting the company's number of outstanding shares, which totaled 5,225,791,000 as of last quarter. Apple's outstanding shares have declined as the company continues its share buyback program.

Apple's stock price will actually need to hit around $153 based on basic outstanding shares, or around $152 based on diluted outstanding shares, for a true $800 billion capitalization. Either way, it's close.

...

Apple's last reported outstanding shares count was 5,213,840,000 as of April 21, 2017. You're using the share counts used to calculate EPS for 2Q 2017. That is not the share count as of the end of the quarter, it's an average over the quarter.

AAPL needs to hit $153.44 for an $800 billion market cap.