Apple's Market Capitalization Sets First New Record High in Two Years at Over $660 Billion

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Apple's market capitalization reached a record high today, breaking the $660 billion mark to sit in the range of $662-664 billion for much of the day's trading so far. The new high breaks a previous closing record of $658.15 billion set on September 19, 2012 and intraday high of nearly $661 billion reached two days later. Market capitalization measures the market value of a business and is calculated by multiplying the stock price by the number of available shares.

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Apple comfortably leads all U.S. companies in market capitalization, with its closest competitors being Microsoft and Exxon, which have market capitalizations of just over $400 billion each. Fourth-place Google falls sits at roughly $370 billion.

While Apple's share price has been routinely setting new records since surpassing its previous September 2012 high in August, it has taken a bit longer for Apple to return to its record market capitalization levels as the company's expanded stock buyback program has reduced the number of outstanding shares.

Apple's stock has surged 17 percent in just the four weeks since Apple's October media event and subsequent earnings announcement where the company announced strong fiscal Q4 2014 earnings fueled by the iPhone 6, iPhone 6 Plus and record Mac sales. The company's share price is up approximately 50 percent over the past twelve months.

Apple last quarter reported $8.5 billion in profit on $42.1 billion in revenue with sales of 39 million iPhones, 12.31 iPads and 5.5 million Mac units. While Mac and iPhone revenue climbed, iPad sales slumped with quarterly revenue dropping 14 percent year over year and 10 percent from the previous quarter. iPad sales are expected to temporarily rebound in the upcoming quarter following the introduction of the new iPad Air 2, with holiday season discounts expected to propel sales of Apple hardware.

Article Link: Apple's Market Capitalization Sets First New Record High in Two Years at Over $660 Billion
 
Article Link
https://www.macrumors.com/2014/11/13/apple-market-capitalization-record/
Booya!

Nice when the market corrects AAPL upwards for once, as it should.

It's so obvious to see, (at least to me), but the shares have been held back so badly for a long time. Now we have the big money players seeing the value here, and that's good for shareholders.
 
Which is exactly why Apple is doomed: they'll all suffocate under that humongous pile of cash, of course.
 
I got out today, after holding the shares for two years. Waiting for a small drop before I get in again. :)
 
BuddyTronic said:
Booya!

Nice when the market corrects AAPL upwards for once, as it should.

It's so obvious to see, (at least to me), but the shares have been held back so badly for a long time. Now we have the big money players seeing the value here, and that's good for shareholders.
Click to expand...

Like Carl Icahn?

th
 
As the article points out (obliquely), market cap really doesn't mean a whole lot, since it's a function of not only stock price but the number of shares in the float. Good for bragging rights but not a lot else.
 
marklemac said:
I bought my stock at $20 a share back in 1996 :)
Click to expand...

My brother and I tried to get our parents to buy up a bunch of Apple stock in the mid-90s, as well. They didn't. My dad was worried Apple would die. He would have been able to stop working by now if he had done that.
 
I wonder if the iWatch will take the place of the iPad in terms of revenue potential, now that the iPad market reach seems to have plateaued.
 
$1 trillion market cap is quite reasonable only if

rough, rough math suggests Apple is worth north of $1 trillion.

For this coming year
250 million iPhone
50 million iPad
15 million Mac
~20 million iPhone equivalent (iPod, iTunes, App Store etc)

=335 million devices @ say $750 average cost

37% gross profit (prior EBITDA) = $93 billion

at 11X earnings (11 x $93 billion) = ~$1 trillion market cap

of course this optimistic outlook depends largely on external factors. I sense we are entering yet another economic contraction. Europe is in relapse. China is producing ghost towns every month. American middle class is well you get the point.

Apple makes incredible products, but I'm afraid in the coming years fewer and fewer people will be able to afford them.
 
GreenPixel said:
My brother and I tried to get our parents to buy up a bunch of Apple stock in the mid-90s, as well. They didn't. My dad was worried Apple would die. He would have been able to stop working by now if he had done that.
Click to expand...
I've bought stock from many companies that people thought were going to die.

Some of them did die.

I've also bought stock from companies that looked poised to really take off. Look up DNDN and of course, LQMT.

Your parents didn't know then what we know now, and what you thought then could easily have been wrong.

AAPL is easily the most profitable stock I have ever owned. I'd be even better off if I had just held on to every share, but I didn't know then what I know now, and AAPL's success made it the largest part of my portfolio. That makes me nervous. So I have sold off and taken profits in the past (and bought back on the dips, occasionally). And I will continue to do that.
 
Bought my stock at the split and have made about 20%. I'm still figuring out investing but I'm doing ok and thanks to Apple things are pretty good across the board. Wondering if I should pull out and wait for the next big dip to buy some more. My only regret is not investing even more. Apple clearly has a lot of room to grow, expanding into new markets with the Apple Watch and competing in existing markets with new classes of device, such as the iPhone Plus. I don't want to short stocks but you know what they say, "Buy low sell high." Well I bought not very low but it has still done better than any of my other positions.
 
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