Apple's Market Capitalization Hits $500 Billion, Stock Up 34% in 2012

[laserbeam273]

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Don't quit your job to become a day trader.

It's arguable about how long Apple can keep up its amazing increases in sales and profits, but $90/share is an insane number baring something like a world war.

Apple's P/E at today's share price is ~15.

I don't trade stock...and frankly am not a fan of the Stock Market Casino.

I've seen and been at plenty of companies for the past 30 years that are $10 one year and $300 a few years later and back down to $15 years later.

For those of you who want to day trade and lock your money into 1 company or daydream about hitting the lottery/Apple stock lottery...great. Have fun.

Am I wrong or have we seen a rollercoaster ride a few times in Apple's history? Will it nosedive next year? Who knows....it's up to Apple to make money.

Let's also remember that in this high tech environment, Apple CLEARY does not sell to businesses. Apple sells to consumers. Fine. Great. Apple is a consumer electronics company. But unlike Bose and Sony (for example) Apple sells zippo to businesses. Therefore, Apple is (for better or worse) 100% reliant on consumers.

Apple has a few products and sells 100% to consumers...in my book that's either a great bet or a bad bet...depending on the year. iTunes and iPod is 10 years old. <yawn>. iPhone is on version 4 (I see iPhone following the same boring steps as iPod gen 4 and newer). iPad is coming on 3 and I am excited for this. Mac is not Apple's concentration but Apple is happy to make a hefty profit on those who like a sexy-looking computer. And let's face it, Mac will never have any kind of high marketshare (say 25% or higher) mainly because it simply does not live in the business world (please don't chime in about your 5-person company that is all Mac), does not have business applications, and fails to have any kind of business-class support/tech support.

I'm not spelling doom and gloom...but just getting people to think a bit more about what Apple has (as far as we know) in its product line and Apple's extremely high value right now.

You short selling AAPL or something? You're writing some very long replies, but you miss out on some key facts like their low iPhone market share vs their huge profit share, customer loyalty, brand value, fairly weak competitors etc. Of course it's a bad policy to put majority of your assets in one place, hopefully no one here is doing that.

As for me, I bought at 390 late last year, and have now experienced a 30% growth in value. Given the doubling of profits last quarter, this sort of growth is expected, not inflated. And given the releases they got coming this year, growth will easily continue. $600, if not $700 by the end of the year if growth sustains.

 

[theinsider]

Surveys and wishful thinking do not equal units sold.

And all your links are for tablets.

Apple has never been business-friendly...EVER! Maybe, just maybe, Tim Cook will figure out that there's a whole nutha billion users out there in businessland that could use Apple products. But I really think that ship sailed a long time ago.

iOS devices all come with the Apple baggage...iTunes, Apple approved apps, Apple hardware, Apple OS, Apple Support, Apple pricing...all Apple lock-in. Although this may be fine with consumers, it is NOT fine with businesses. Not sure if you ever worked in IT but IT does not like lock-in...and there will not be an IT Revelation that lock-in is now the defacto standard or cool or hip.

iOS devices appearing in businesses are definitely not IT sanctioned/approved. There have been numerous reports/studies regarding this. We all know that the iPhone is simply a computer with the ability to make phone calls. Every company on the planet forbid you bringing in your own, personal computer and connecting to the corporate network...the iPhone is no different. IT may be tolerating it right now, but IT is definitely wary of the iPhone/iPad's security.

I will just say read up on what American Airlines, United/Continental and GE (which has already been mentioned) are doing with apple products. Yes you may argue it's only the iPad but that is the entry point in these cases. There are many other cases that you can find by googleing that demonstrate the adoption of Macs in the enterprise. Most notably Google being one such company that has a very high number of Macs deployed in the business.

 

[MacFan782040]

Half a trillion dollars? Ever wonder what that looks like? (well just half of this...)

Each pallet holds $100 million and those pallets are double stacked.


Link: Puts everything in perspective

 

[mossme89]

Can the stock truly keep going? As a stock investor, when a stock starts to go parabolic (which apple is doing now), it makes me very weary and is a big red flag. I mean, look what happened with Netflix after it hit it's peak. Granted, Apple is no Netflix, but still. I wonder how long until there is a top.

This is just hot air from me. I have no $ to spend on Apple :/

 

[Buildbright]

Some myths die hard. Apple was not near bankruptcy in 1997. Not anywhere close, really. They still had a fair amount of cash on hand (over $1b) and not much debt. They'd have had more credit available, had they needed it. The difference between life and death for Apple was not $150m.

Microsoft got no advantage from buying stock in Apple, except what money they might have made in selling it. The "endorsement" from Bill Gates that Steve engineered was the real story here. It helped turn around Apple's image in the minds of the public. Everybody seemed at the time to be trying to figure out how "Bill won again" in this deal, when it's clear from the record of what actually occurred that Steve pulled off a huge PR coup. That, and the subsequent products, are what saved Apple.

Microsoft got no leverage in the antitrust case from this. None whatsoever.

I am sorry but you are wrong. Its a fact they were bleeding cash and had no faith from the public or investors. But my information comes from facts not speculation. They got an operating system and leadership from Steve Jobs without that the imac and ipod would have not come to light as it did. Those were the turn around products from Apple.

 

[iSee]

I don't trade stock...and frankly am not a fan of the Stock Market Casino.

I've seen and been at plenty of companies for the past 30 years that are $10 one year and $300 a few years later and back down to $15 years later.

For those of you who want to day trade and lock your money into 1 company or daydream about hitting the lottery/Apple stock lottery...great. Have fun.

Am I wrong or have we seen a rollercoaster ride a few times in Apple's history? Will it nosedive next year? Who knows....it's up to Apple to make money.

Let's also remember that in this high tech environment, Apple CLEARY does not sell to businesses. Apple sells to consumers. Fine. Great. Apple is a consumer electronics company. But unlike Bose and Sony (for example) Apple sells zippo to businesses. Therefore, Apple is (for better or worse) 100% reliant on consumers.

Apple has a few products and sells 100% to consumers...in my book that's either a great bet or a bad bet...depending on the year. iTunes and iPod is 10 years old. <yawn>. iPhone is on version 4 (I see iPhone following the same boring steps as iPod gen 4 and newer). iPad is coming on 3 and I am excited for this. Mac is not Apple's concentration but Apple is happy to make a hefty profit on those who like a sexy-looking computer. And let's face it, Mac will never have any kind of high marketshare (say 25% or higher) mainly because it simply does not live in the business world (please don't chime in about your 5-person company that is all Mac), does not have business applications, and fails to have any kind of business-class support/tech support.

I'm not spelling doom and gloom...but just getting people to think a bit more about what Apple has (as far as we know) in its product line and Apple's extremely high value right now.

You're the one picking a target share price.

I was just pointing out you have no idea how to value a stock.

 

[IJ Reilly]

I am sorry but you are wrong. Its a fact they were bleeding cash and had no faith from the public or investors. But my information comes from facts not speculation. They got an operating system and leadership from Steve Jobs without that the imac and ipod would have not come to light as it did. Those were the turn around products from Apple.

I am not speculating. Bleeding cash is true, lack of faith from the public and investors is true, but "close to bankruptcy" does not necessarily follow, and it does not in this instance. I am not disputing what turned Apple around, except for the claim that it was the $150m from Microsoft. As you say, that's not what did it the trick, it was new leadership and new products.

----------

I was just pointing out you have no idea how to value a stock.

In the interest of fairness and accuracy, neither does anyone else. Some people only think they do.

 

[RobertMartens]

Apple will need to continue innovating ...

This has been the same line every time Apple has a hit.

"Sure they are doing great now but if they don't keep innovating they will die."

Duh


SONY? What the hell happened to you?

 

[the8thark]

Let's also remember that in this high tech environment, Apple CLEARY does not sell to businesses. Apple sells to consumers. Fine. Great. Apple is a consumer electronics company. But unlike Bose and Sony (for example) Apple sells zippo to businesses. Therefore, Apple is (for better or worse) 100% reliant on consumers.

You ARE 100% wrong there. You've seen the figures of iOS adoption rates among businesses. Heck most of the biggest companies in the world are thinking of using iOS devices or actually are using iOS devices now. And this is part of Apple's business strategy. And the halo effect is slowing slowly into the Mac too for business customers.

Also the creative professionals and their businesses were and still are a nice core area for the Mac. Steve's first speech returning to Apple was Apple's 2 core areas that they were doing well in back then were creative professionals and education. And Apple is doing their hardest to keep that trend going. And yes creative professionals work and own their own businesses too.

So saying "Apple CLEARY does not sell to businesses" is so wrong it's not funny. I think you need to read a little more on Apple, to see their business strategies.

 

[nate13]

Up until 2 weeks ago I had not invested any of my hard earned money into the stock market, besides my 401K obviously. But then something changed. I began to read and follow Apple, both the company and the stock. I thought for a moment and realized that Apple honestly might be it... They honestly might have figured it out.

I took out a hefty loan on my 401k and bought up as many shares of Apple as I could. Watching what the market has done and where it will be going absolutely astounds me.

In two weeks I have already made more than the interest on my loan and then some.

The best part, is nothing seems to be able to stop them.

 

[Chicagomac08]

100%to consumers? Try again. And all you have pointed out is a major opportunity.

Ou say stale but consumers line up to give their money away, try again.

I don't trade stock...and frankly am not a fan of the Stock Market Casino.

I've seen and been at plenty of companies for the past 30 years that are $10 one year and $300 a few years later and back down to $15 years later.

For those of you who want to day trade and lock your money into 1 company or daydream about hitting the lottery/Apple stock lottery...great. Have fun.

Am I wrong or have we seen a rollercoaster ride a few times in Apple's history? Will it nosedive next year? Who knows....it's up to Apple to make money.

Let's also remember that in this high tech environment, Apple CLEARY does not sell to businesses. Apple sells to consumers. Fine. Great. Apple is a consumer electronics company. But unlike Bose and Sony (for example) Apple sells zippo to businesses. Therefore, Apple is (for better or worse) 100% reliant on consumers.

Apple has a few products and sells 100% to consumers...in my book that's either a great bet or a bad bet...depending on the year. iTunes and iPod is 10 years old. <yawn>. iPhone is on version 4 (I see iPhone following the same boring steps as iPod gen 4 and newer). iPad is coming on 3 and I am excited for this. Mac is not Apple's concentration but Apple is happy to make a hefty profit on those who like a sexy-looking computer. And let's face it, Mac will never have any kind of high marketshare (say 25% or higher) mainly because it simply does not live in the business world (please don't chime in about your 5-person company that is all Mac), does not have business applications, and fails to have any kind of business-class support/tech support.

I'm not spelling doom and gloom...but just getting people to think a bit more about what Apple has (as far as we know) in its product line and Apple's extremely high value right now.

 

[Shagrat]

Cash on the company's books does not add anything to shareholder value. It does not provide any meaningful level of support for share price. If at any time Apple had to fall back on their cash-on-hand to fund operating expenses, this would mean that the company was no longer profitable. Try to imagine what would happen to the share price if Apple started losing money, instead of raking it in. You would soon see how little that $100 per share in cash means.

YEs, we can work that one out.

It IS however amusing to note (qua the famous Michael Dell quotation, oft repeated in these forums!) that Apple's cash pile is (more than)equivalent to the Market cap of Dell, Adobe, RIM and Nokia combined.

For what it's worth...

 

[BobbyRond]

Apple cash stock pile is 100 billion, not 1 billion.

Wow, I feel seriously retarded... That comment I made was so dumb, I even downvoted myself.

 

[nate13]

Makes me wish i bought more stock...

 

[kdarling]

I will just say read up on what American Airlines, United/Continental and GE (which has already been mentioned) are doing with apple products. Yes you may argue it's only the iPad but that is the entry point in these cases.

I'm not convinced that buying iPads for pilots translates into any other Apple purchase. For one thing, it's a niche application that's been well implemented for a long time.

Tablets for pilots have been around since 2000, and laptop EFBs before that. Some even with FAA approval to integrate with the aircraft.

In short, the applications and devices have been available, and charter airlines and shipping companies like FedEx have used them since the mid '90s.

So why didn't the airlines get tablets before? I'd say that the main reason they finally got the iPads was because of their low cost (half, or less) relative to other available devices of equal ability.

Apple's other computer products don't have the same price advantage.

However, I can visualize the airlines buying more iPads to be used as portable terminals by roaming agents perhaps.