Apple's Stock Closed at All-Time High Today Ahead of Earnings Results Next Week

[MacBH928]

The bubble will burst any time now, I guarantee it. (year 2000 flashbacks)

Can't stop AAPL since the iPod in 2001. It transformed the company completely. I've told anyone and everyone the same since, and only 2 of my buddies ever bought any.

<== AAPL shareholder since 1996

You are really brave to buy AAPL stock in 1996 over say Microsoft, Yahoo, Oracle, or Dell. Maybe you have crystal ball of some sort. You are also brave to keep that stock although you multiplied your money many times over by 2005, 2010, 2015, 2019, and now 2020. If I put in $100K I would cash out when it is $1M for sure.

 

[grennis]

Great, but they can't afford to repair Flexgated 15" laptops that are rendering useless due to their defective design?

 

[Abazigal]

I don’t think the Apple story is close to over, but I have to point out just how right I was when I started pounding the table that Apple was severely undervalued 6 years ago.

Every time the stock was down, I told people to buy. Remember when Apple stopped reporting unit sales? People lost it. I remember buying a large amount of shares that day. Still have them. It was trading at split adjusted $50 then.

I agree that Apple is only getting started.

If we look back at how Apple fared this year, the underlying theme underpinning all its successes is its improving competitiveness in comparison to that of its peers and the steps that Apple is taking to position itself for continued ecosystem growth in the 2020s.

The iPhone got Apple to 1 billion users, I am willing to bet that it’s wearables which will get Apple to 2 billion. It’s ecosystem gets ever more sticky with every new product and service offering, and Apple is rapidly removing oxygen from the many markets it operates in.

Here’s to an even more successful 2021.

Viva la Apple!

 

[ryanwarsaw]

Well if Cramer said it, that HAS to be true. 🤣

Do you have reason to believe it isn’t true? Any thesis on the weakness of the dollar. Haters gonna hate.

 

[ryanwarsaw]

That's definitely wise, and I know some startup colleagues who do that.

I live in the UK though, the closest scheme we have to what the US has called an 'ISA'. I just cashed out to buy my first home with one, and am using a second to save for cashing out when I hit 60.

In the meantime, I've got a bunch of BTC, AAPL and TSLA from time ago that's serving me well for now whilst I figure out my next moves.

(That, and I only really buy any Apple product if what I have is on its last legs. Just my 2¢s but why people buy new devices every year is beyond me, it's consumerism at its worst. Who am I to tell people what to do though, and it does mean that people like you and I benefit out of it 😆)

My Husband is English and your pension schemes are ridiculous from what I can tell. Everything is so convoluted. I personally use the change in my sofa every year to buy my Apple products.

 

[Nick_P]

The bubble will burst any time now, I guarantee it. (year 2000 flashbacks)


You are really brave to buy AAPL stock in 1996 over say Microsoft, Yahoo, Oracle, or Dell. Maybe you have crystal ball of some sort. You are also brave to keep that stock although you multiplied your money many times over by 2005, 2010, 2015, 2019, and now 2020. If I put in $100K I would cash out when it is $1M for sure.

Fanboy's put their money where their mouth is

Actually my first stock was in 1992 or 1993 I think I was about 14 years old. 10 shares of Intel. Because I was underage, that was in a separate account, that I have not touched since. INTC shot up until the crash of 2000, but has been stagnant since. It took actually until last year to get to the same price it was in the summer of 2000 before everything crashed.

 

[Black Belt]

The upside for Apple with The apple silicon products and plan forward is huge. It’s one of the very few tech stocks I would bet on.

 

[whiteboytrash]

The upside for Apple with The apple silicon products and plan forward is huge. It’s one of the very few tech stocks I would bet on.

Agreed.

The Apple silicon aspect is what will propel the product range and the stock price. The M1s are really only scratching the surface of what the chip and platform is is capable of.

 

[Baymowe335]

Anyone who follows AAPL knows a strong dollar for a company with as much international business as Apple been a huge headwind. They have mentioned it and quantified it for years. They are material...it’s been like a 2% impact before. Weak dollar will go the other way and could mean a significant earnings bump.

 

[chris1958]

You can’t really gauge the market by the same metrics people used to use. The companies trading now are different beasts and more and more people are hooked. Let’s see what the stock does after Cramer gets through with it tonight.

When people start claiming that the rules are different this time, you can bet that soon a bubble will burst.

 

[ryanwarsaw]

When people start claiming that the rules are different this time, you can bet that soon a bubble will burst.

I don’t know, now your have millions of people buying stocks based upon price not the multiple. It may burst but then you just buy some more. A 30% plunge would be simply the start of a new buying spree. Prices may fall to even the traditional levels. Then it moves from left to right again and you will have even higher levels.

The same people will say it nisn’t sustainable and it will burst but now grudsgingly have to move the chains again. The younger people out there are much less conservative about prices. They are also as whole beginning to invest a higher percentage than usual of their income. Wait until they get some real money behind them.

What will change is that in the not too distant future you will have an overwhelming majority of people owning stocks. Most of which will manage their own accounts.

Commission free, fractional trading is a huge difference in the democratization of the markets and will allow an unprecedented level of participation. The type of companies is also changing. Apple literally has the potential to be a $10 trillion dollar company not too far off. If not go ahead follow Warren and get you some KHC.

 

[Oculus Mentis]

NVDA has today the same potential of AAPL 10 years ago.

 

[Baymowe335]

When people start claiming that the rules are different this time, you can bet that soon a bubble will burst.

Do you have any evidence to back this up? Apple doesn’t fit any definition of a “bubble.”

Apple has earnings and a proven track record. This doesn’t make them immune from the stock dropping, but it does make them different than the tech stocks of 1999.

There are a couple bubble like stocks today, but Apple is not on that list. Think about Tesla. It trades at 1,200X earnings. What about Bitcoin? Why is it $35,000? Even the bulls don’t know.

I can easily explain why Apple trades at $140.

Higher level, stocks are the only game in town. Where are you going to put your money? With interest rates this low and so much stimulus, everything else is a loser’s proposition.

There is a money printing problem, but when that Piper has to be paid, companies like Apple will be the last ones standing. You’ll want to own assets like Apple.

 

[hugodrax]

It looks like no more checks need to be sent to people, markets and business doing record profits. Highest ever. So why keep handing out checks.

 

[ArtOfWarfare]

No, it’s not. Still undervalued, by a lot.

Care to share your numbers/reasoning?

The numbers of products Apple was selling each quarter peaked a few years ago. It may have been boosted a bit by the pandemic, but that was likely just pulling sales forward in time, meaning even leaner volume sales are ahead.

Apple has been boosting revenue by raising prices. This isn’t a sustainable long term plan - at some point, the number of people deciding not to buy Apple’s products is going to get to get to the point where it doesn’t matter how much Apple raises their prices, revenue will collapse.

Pretty much every Apple product currently available was released between 1997 and 2010, while Jobs was running Apple. The only products introduced under Cook have been the Apple Watch and the HomePod - everything else is just a next version of something Steve did (and... really, I’m being too generous. The Watch is just an evolution of the iPod Nano and the HomePod is an iPhone 4S minus the touchscreen, both products that came out while Jobs was in charge.)

Honestly, the only reason Apple is doing as well as it is is because it’s not like anyone else is doing a particularly good job. Google is similarly hopelessly stagnant with their offerings.

 

[BuddyTronic]

They will declare a dividend on Tuesday. Unless I misunderstood what you’re saying?

I'll try to be more clear about it:

Apple announces increases in shareholder dividends at the next quarterly earnings report session, not this one.

That's not set in stone, but they have done it after Q2 earnings report. This is apple Q1 earnings report.

Apple Q1 ended Dec 31, and earnings report for AAPL fiscal year Q1 is coming Jan 27, 2021.


The dividend was last increased in April 2020 quarterly report for Apple fiscal Quarter 2.

Apple increased it by the same amount every year for the last few years. A lot of us shareholders probably wished that they would have really boosted the dividend more. Some shareholders are fans of the share buybacks.

I personally want both share buybacks to happen as well as a doubling of the dividend. This would really hold the share price up which would be more appropriate for the largest market cap company on the USA stock market.

Why not jack up the dividend Tim Cooke?

 

[BuddyTronic]

Care to share your numbers/reasoning?

The numbers of products Apple was selling each quarter peaked a few years ago. It may have been boosted a bit by the pandemic, but that was likely just pulling sales forward in time, meaning even leaner volume sales are ahead.

Apple has been boosting revenue by raising prices. This isn’t a sustainable long term plan - at some point, the number of people deciding not to buy Apple’s products is going to get to get to the point where it doesn’t matter how much Apple raises their prices, revenue will collapse.

Pretty much every Apple product currently available was released between 1997 and 2010, while Jobs was running Apple. The only products introduced under Cook have been the Apple Watch and the HomePod - everything else is just a next version of something Steve did (and... really, I’m being too generous. The Watch is just an evolution of the iPod Nano and the HomePod is an iPhone 4S minus the touchscreen, both products that came out while Jobs was in charge.)

Honestly, the only reason Apple is doing as well as it is is because it’s not like anyone else is doing a particularly good job. Google is similarly hopelessly stagnant with their offerings.

Let me try to help you by briefly commenting on what you said here:

What you have said above does not seem to take into account the double digit services growth and subsequent increase of revenue from things that are not physical hardware products! Go check out how much revenue comes from services now.

There are also other reasons why we can say AAPL stock is undervalued.

 

[BuddyTronic]

It looks like no more checks need to be sent to people, markets and business doing record profits. Highest ever. So why keep handing out checks.

Well, not everyone is invested in the stock market unfortunately. Lots of companies like restaurants are hurting. I think it's very good if we have government send out cash to every citizen, and give even more money to small businesses that are hurting financially through the pandemic. Let's minimize the pain for everyone and get through this pandemic.

 

[BuddyTronic]

I don’t think the Apple story is close to over, but I have to point out just how right I was when I started pounding the table that Apple was severely undervalued 6 years ago.

Every time the stock was down, I told people to buy. Remember when Apple stopped reporting unit sales? People lost it. I remember buying a large amount of shares that day. Still have them. It was trading at split adjusted $50 then.

Totally!

Even now the stock is undervalued, but we are not looking at P/E of 10 anymore. But still AAPL is undervalued and a great long term buy.

It's absolutely crazy that the talking heads on CNBC and all the analysts and investor websites like "seeking alpha" etc mostly missed it, and I'd bet they will continue to miss great opportunities until they have passed them by.

 

[BuddyTronic]

More like who's ready to get in a time machine and go back one year and buy Apple stock THAT weekend.

Try a time machine into the future would be my suggestion - that is doable with calls.

 

[BuddyTronic]

I'd really like it if they did another big jump like they did three years ago. They've gotten a bit more conservative with increases the past two. A mere 12% would make me really happy! Or have the stock price jump, either or. 😀

Really I wish they would boost the dividend a heck of a lot more. Maybe they don't want to do it because of the share buybacks. Apple is buying back all their stock at bargain prices. If they radically jack up the dividend, nobody would sell the shares and the share price would increase. Buybacks also do this and we don't have to get taxed on the dividends - the value ends up in the stock. Anyways - it's debatable I guess.

 

[BuddyTronic]

The bubble will burst any time now, I guarantee it. (year 2000 flashbacks)


You are really brave to buy AAPL stock in 1996 over say Microsoft, Yahoo, Oracle, or Dell. Maybe you have crystal ball of some sort. You are also brave to keep that stock although you multiplied your money many times over by 2005, 2010, 2015, 2019, and now 2020. If I put in $100K I would cash out when it is $1M for sure.

What bubble? And BTW - the only thing worse than bubbles is No Bubbles!

Chicken little stories like your guaranteed bubble bursting - how does that take into account all the Stimulus? How does that take into account that the Fed is telling us that government will be buying equities!

Look at how the Fed policy has been running in such a way as to minimize suffering during this pandemic crisis. They learned in 2009 that it's worthwhile to rain money when there is a crisis. They have correctly and humanely minimized suffering.

Regarding buying AAPL long ago - well, you have a bunch of Apple Fanboys here from way back - so lots of us probably bought and held for decades. Sure I could have probably made a mint buying MSFT in 1991 - but I was resentful of Microsoft copying Mac OS basically. I was in my 20's and not as wise! Oracle I have followed for decades - glad I avoided - although I was an early Netsuite customer and knew something about the company. DELL? haha. surely you jest. Remember - what company would you put ALL your money into? DELL? No.

You had to have faith with Apple. You had to see that Apple was doing things better. A little luck helps too!

 

[BuddyTronic]

The upside for Apple with The apple silicon products and plan forward is huge. It’s one of the very few tech stocks I would bet on.

There are many good tech stocks, but...

It's a pretty safe bet to buy AAPL and hold. (You can still lose money, but it's less risky than not investing I'd say.)

 

[BuddyTronic]

Do you have any evidence to back this up? Apple doesn’t fit any definition of a “bubble.”

Apple has earnings and a proven track record. This doesn’t make them immune from the stock dropping, but it does make them different than the tech stocks of 1999.

There are a couple bubble like stocks today, but Apple is not on that list. Think about Tesla. It trades at 1,200X earnings. What about Bitcoin? Why is it $35,000? Even the bulls don’t know.

I can easily explain why Apple trades at $140.

Higher level, stocks are the only game in town. Where are you going to put your money? With interest rates this low and so much stimulus, everything else is a loser’s proposition.

There is a money printing problem, but when that Piper has to be paid, companies like Apple will be the last ones standing. You’ll want to own assets like Apple.

I agree AAPL is no bubble.

 

[Baymowe335]

I agree AAPL is no bubble.

Regarding BTC though:
BTC price relates to the cost of mining! Miners will stop mining unless the price makes it worthwhile.

It also relates to the supply of BTC.

BTC is greatly misunderstood.

Scarcity And value are not always related. A lot of things are scarce and worthless.