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Apple Shares Could Surge Another 27%, Says Wedbush Analyst
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So has the national debt, and how many times has the FED panicked since then? Too many to count. At some point, something will break and they won't be able to fix. I just hope people don't get caught off guard.
That's what the naysayers have been saying since 2009. And they missed the best rally ever.
In 2009, the fed started doing QE (prior to that the only tool was interest rates).
In 2020, the fed has started buying corporate and municipal debt.
Remaining bullets include yield curve targeting, negative interest rates, and buying stocks outright. Between those three, I think we have a few decades of runway.
Without fed support, stocks go to zero in no time. But the fed cannot afford to not support stocks because pension funds will turn into a mess as will the rest of the financial system.
You forgot Rod Hall who should be the leader of your bunch of elite analysts. Of course, his clients are looking for him with clubs and torches, so he'll be hard to find.
Today's market price is a better indicator than any projection.
And of course the key weasel word is "could" A lot of things "could" happen.
Apple has a lot of work ahead of them to deliver the earnings growth implied in a 38 PE ratio, as is.
And of course the key weasel word is "could" A lot of things "could" happen.
Apple has a lot of work ahead of them to deliver the earnings growth implied in a 38 PE ratio, as is.
You're absolutely correct, but I could argue that some would like to invest in a healthy economy because the odds of something catastrophic happening are much less than in an economy that needs the FED to step-in at every downturn. Eventually, something that can go wrong will go wrong. Just look at how relentless the March sell-off was. What's to say it can't happen again, and stay down this time? Very dangerous stuff if on the wrong side.
They better sell and put it in something more safe, before things start crashing down. The Fed cannot keep pumping big money into an economy the coronavirus has shut down. The longer this goes, the worse it is going to be for us (well, everyone).
If the Fed was pumping in money into an economy that was reopening that would be fine but we will not be reopening anytime soon because the virus is not contained.
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Like I mentioned, fed has many remaining bullets in their arsenal and they will not let the market drop. (Including but not limited to buying stocks outright.)
At this point, the only risk to AAPL is execution risk. As long as they continue to execute, they will be fine. Even if their P/E goes to 100.
If you sell stocks, what are you going to buy? Sit in cash earning 0.1%?
If you don't buy AAPL, what else will you buy? Something struggling to maintain profitability? An index fund where AAPL is a huge component and the bulk of stocks in it are duds?
Thus the pent up demand. I’ve been itching to buy a new phone for a couple of years now, but Apple hasn’t offered what I yet. Apparently I’m not alone in that sentiment.
ABSOLUTELY. Look at Overstock.com’s stock price when COVID hit! I bought some as a joke way back but NOW it’s real money.
Doesn't the weighting get readjusted after the upcoming split?
Nope, we're talking valuations, and Apple will still be worth the same % in the S&P 500 before and after the stock split. The DOW does get impacted in that Apple stock moves will affect it less than before.
Makes sense.
I thought I read somewhere that the split may cause some selling - maybe index funds or mutual funds?
Or perhaps I'm misinformed...
Basically most indexes are calculated using market cap of companies, so a simple way to think of each company's contribution to the index is:
(market cap of company)/(sum of market cap of all companies that are in the index).
This doesn't get affected at all by stock splits.
In the case of the Dow, a company's share of the index is computed in way similar to:
(price of 1 share of company)/(sum of prices of 1 share of all companies that are in the index).
Ordinarily such an index would be affected by the stock split, but in the case of the Dow it uses an additional "factor" in the computation and the factor changes every time a stock splits.
Dow Jones Industrial Average - Wikipedia
There are clearly people who disagree, otherwise it'd already be up the 27%. Broadcasted investing advice isn't very useful. Funny how right now, half the investing articles I scroll past hype up stock splits. They don't matter.
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Not really, it's not any different from being paid in USD. In fact you're more free to trade AAPL stock and options if you don't work there.
It does have some effect because it makes trading more accessible. Options are priced in units of 100 shares and most brokerages, while they now allow one to buy a fractional share, only allow selling whole shares.
The split matters, but not the timing of it. I'm just going to assume every company will split their stock periodically to make sure it doesn't get insanely coarse.
Not as a consumer products/services company.
A 35X multiple is totally reasonable for Apple.
You want to talk multiple issues, start with TSLA, AMZN, NFLX, and many others.
Clorox trades at over 30X.
Anyone getting into Clorox now is going to have a bad time tbh. Too many people piled in as a not very thought through covid trade thinking people will need to bleach things.