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Apple Share Price Hits $600, Just One Month After Hitting $500
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Congrats on having the most vacuous argument of the day.
By the usual indicators of whether or not a stock is overpriced, Apple is still under-priced.
It's a shame that they don't pay dividends. If they did, they'd probably be around 250-300, where they belong.
Oh no, you took me the wrong way. I'm a a fanboy and proud of it. I just found amusing how his/her remarks were so negative even though he seemed to support Apple so much...
FD: I'm long AAPL (at roughly $417).
No woulda, coulda, shouldas, here, but part of me is a bit concerned by how rapidly Apple has risen. The Street doesn't always act rationally (2008 should have dispelled whatever was left of that notion). Apple at $400 seemed like a good value. Even at $600 it is probably fairly valued, but the meteoric rise has the makings of a frenzy. It was at $500 just a month ago. I wouldn't be surprised to see a pullback (remember, it pulled back sharply in the days leading up to last quarter's earnings release), but over the medium term I still think $600-$750 is realistic.
Long term gets tricky, as Apple's valuation is now definitely taking into account expectations that it will continue to crank out hits. iPad seems to be one, and if the new iPhone is the more radical redesign that "experts" thought was coming out last year, it should do well, too (it will almost certainly have LTE and a new version of iIOS). However, no one knows what Apple will be releasing in 2015 or 2016, or whether a new player will emerge. Remember, 5 years ago, not a single iPhone had been sold, and 2 years ago, not a single iPad had been sold. Today they are 75% of Apple's revenue.
No woulda, coulda, shouldas, here, but part of me is a bit concerned by how rapidly Apple has risen. The Street doesn't always act rationally (2008 should have dispelled whatever was left of that notion). Apple at $400 seemed like a good value. Even at $600 it is probably fairly valued, but the meteoric rise has the makings of a frenzy. It was at $500 just a month ago. I wouldn't be surprised to see a pullback (remember, it pulled back sharply in the days leading up to last quarter's earnings release), but over the medium term I still think $600-$750 is realistic.
Long term gets tricky, as Apple's valuation is now definitely taking into account expectations that it will continue to crank out hits. iPad seems to be one, and if the new iPhone is the more radical redesign that "experts" thought was coming out last year, it should do well, too (it will almost certainly have LTE and a new version of iIOS). However, no one knows what Apple will be releasing in 2015 or 2016, or whether a new player will emerge. Remember, 5 years ago, not a single iPhone had been sold, and 2 years ago, not a single iPad had been sold. Today they are 75% of Apple's revenue.
Well, now you've completely devalued your own comment. By saying that "whatever goes up must come down" can be applied to anything trivializes the observation, particularly since you don't say when the shift will occur.
It's polite chit-chat, but it doesn't provide any exceptional insight concerning AAPL as an investment at this point. Now if you had set a one-year target estimate of $400, that would be a substantial comment.
Anyhow, if you look at Apple's financials, it is still very much undervalued. You can't just look at a share price and say "this stock is too much" or too little without surveying multiple data points about their overall financial performance and assessing future growth opportunities.
Thanks, it's what I do.
Except it wasn't my commet, I devalued someone else's comment.
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I love apple, but this is getting rediculous. The company just isn't worth that much. It's trading WAY above where it's current profit projections say it should. Expect a 20% correction within a year.
I disagree. By every M&A level analysis I've done of the enterprise, it's overvalued by more than $100 per share. I use a similar method of DCF analysis that Warren Buffett uses, and it seems to work out pretty well for him and every other acquisitive investor who follows Graham's basic principles which seem like common sense to anyone rooted in a finance education but can be daunting for the average person for whom meaningless ratios (e.g. P/E) are much more attractive because they offer the appearance of an answer with no real work.
See people complain about the wealthy, but really it isn't that hard to get there if a person makes the right investments and has a little luck. AAPL is making a lot of people very wealthy, but those people took the time to save what they could and then make good investments. AAPL at $800 in another year? It's possible!
Which is exactly why I didn't buy back then.
And that's why I'm not buying now ... and if I could figure out where it is going next, I would make a lot more money than I do now.
Meteroic is the only way to describe this...But it's not really that surprising...Especially with two much touted innovative products just released.
This only proves that 'Apple is a total failure' like many people here call it.
(sarcasm)
I can only imagine what all the apple emo haters are going to be doing tomorrow. I swear some of my friends almost pop when Apple proves themselves the best certain times. I am surprised a couple of them have not knifed me yet just for owning a mac.
but only have 50 left
still +5000% ain't bad
I remember reading about a year ago on here some guy had 250 and he bought them for $2 each way back. He said he doesn't plan on selling them for ages too lol...
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in 96 I would have had about 200 in the bank at about the age of 8 lol. that would have bought me 100 shares. $60,000 worth today
Depends on what you mean by wealthy. Luck has produced a few millionaires. But look at the list of the world's wealthiest ... Among billionaires there isn't a single one of them who arrived there, and, most importantly, STAYED there, on luck.
I like the AAPL speculator to a day trader or real estate "investor". Remember when everyone argued that there's no way real estate could go anywhere but up? It's a very familiar refrain to me. Now rates are flat, housing starts are growing but inventory is not shrinking... Rinse, repeat.
It takes a real investment strategy, and access to a tremendous amount of capital, to become and stay truly wealthy. Most people who put their eggs in the Apple basket will never even remotely approach that... and if Apple tomorrow is hit by a meteorite, most speculators will have no clue how to produce anywhere near those kind of returns elsewhere in the market.
But some of us do, and have, and are... and we don't lament about what we could have done. Apple's very attractive to people who don't want to or have no idea how to develop a true, sound investment strategy.
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I did (well, slightly after that, but you get the idea...)
Which is exactly why I didn't buy back then.
And that's why I'm not buying now ... and if I could figure out where it is going next, I would make a lot more money than I do now.
I hate taking risks full stop lol. I will earn my money the hard working way and live happily.
And I wonder how much of this is a Goldman Sachs hatched scheme to 'pump and dump' the stock to make a killing. I wonder how many 'investors' are shorting the stock now, betting it will fall from the artificial high it's reached.