Yes. It's called iTravel. It can be yours for $650b. Seriously, I would take 1999. Or even 2006...
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Apple's Stock Price Breaks Through $700, Sets New All-Time Records for Price and Market Cap
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Yes. It's called iTravel. It can be yours for $650b. Seriously, I would take 1999. Or even 2006...
My comment isn't a prediction - it's based on present fact (cash + P/E).
For one thing, cash is not a factor is PE. Neither is debt. In reality neither makes much if any difference to an equity investor.
For another, claiming that a stock is either under or overvalued is based on a prediction of the future, by definition. The purpose of stock markets is to value stocks. The markets are assigning the actual market value to any given stock at any given second on any given trading day. These values take in all of the information available to investors at that moment. So when you claim that a stock is "undervalued" you are taking credit for knowledge of the future that all of the rest of the investing world, combined, does not possess. Maybe you are right, maybe you are wrong. Place your money and take your bets.
I always feel kind of pedantic when I explain this, but I guess I wouldn't have to be pedantic if more people understood how stock markets work.
Loved the "Apple is 1 Google above Exxon", considering that the original use for the word "Google" was a gigantic number, 1x10^1,000,000 if I recall correctly...
Takes on a bit of a different meaning if you look at it that way
Takes on a bit of a different meaning if you look at it that way
So what's the fear? That the iPhone 5 will flop? I think we're past that one now. That a competitor will come in and steal all the cookies? Perhaps. But that's been the threat for many years now, and no competitor ever seems to live up to the billing. Why, just 2 years ago I was reading about an iPad-killer called the HP Slate. Glad I didn't sell my stock on that threat.
I never said it was. But when you're looking at stock valuation, the amount of cash-on-hand is a valid factor. That cash Apple is holding makes each of my shares worth $120+ for my share of their cash alone.
Of course. So you look at a company like Apple, with $120 billion in the bank and massive, record profits each quarter - and plenty of room to grow - where's the big negative? Apple is priced equally to Microsoft from a P/E perspective. And we know Microsoft has to milk its same customers on a cyclical basis with Windows and Office. That's what 90% market share gets you. Nowhere to rise.
Yep, that's investing in the modern age. AAPL is certainly an emotional roller coaster. In the "old days" I would let my stomach get tied up in knots with its wild swings. Now I've come to accept it as the way AAPL works. Big gain, big drop, bigger gain. If I had sold at any point some no-name on the Internet told me the stock was about to crash, I'd be a very unhappy person today.
If only they "worked" like logic would dictate, rather than on the computer-generated micro-second transactions used by large funds and armies of day traders.
I was taught early to invest in a company you believe in and ignore the daily gyrations of the machine. That philosophy has worked well for me with AAPL. I only wish, of course, I had more $$$ to invest in it back in 2001 when I originally bought. Or that I had bought more when it dropped another 50% just after I bought. I'm just glad I didn't panic and bail out when it recovered to my original purchase price.
I wonder if m$ Steve is still laughing at the iPhone fad or those using an iPad?
So what's the fear? That the iPhone 5 will flop? I think we're past that one now. That a competitor will come in and steal all the cookies? Perhaps. But that's been the threat for many years now, and no competitor ever seems to live up to the billing. Why, just 2 years ago I was reading about an iPad-killer called the HP Slate. Glad I didn't sell my stock on that threat.
When no one can think of a reason not to own a stock, that is probably the time to sell. At least, this has been my experience. My probabilities say its more likely to fall than rise in the near future. Of course, I could be wrong.
Loved the "Apple is 1 Google above Exxon", considering that the original use for the word "Google" was a gigantic number, 1x10^1,000,000 if I recall correctly...
Takes on a bit of a different meaning if you look at it that way
I think that was a Googol?
I jumped on Apple stock hard after the original iPhone was released. That purchase alone has given me the option of retiring earlier than I thought. Not being greedy, but I feel there are plenty of legs left to run further. I think Apple's fourth quarter is going to explode higher and drive the price to levels that will shock even seasoned Apple investors.
But really, it isn't. Cash on hand means only two possible things to an investor. It matters if the company declares a divided, which at long last, Apple has done. Apple's dividend is a tangible value to an investor, though difficult to quantify in the stock markets. It also matters if you are planning on buying the entire company. Then you get all of that cash to do with as you will as you now own it. In no other case do you as an equity investor get a taste of that money. So for all practical purposes, it's really just a number on a balance sheet. The value to investors is an abstraction.
I don't make predictions about future stock values, not here and not anywhere. I made one great bet on AAPL 15 years ago but I don't think this makes me some sort of investment guru who can predict the future. I was lucky, damned lucky -- and unlike all the hip-pocket analysts you get in places like this, I admit it.
Program trading is the name of the game today, but only for big institutional traders. They don't have the kind of longterm influence on valuations that investors ought to worry about much. You were taught right about investing. Days, weeks or even months go by when I don't even look at the stock market, let alone my own portfolio. Paying too much attention to what the markets do over the short run will lead you to making emotionally-driven mistakes. You will do the wrong thing, almost every time.
Ah not true actually.. they *only* have a bit over $100 billion of cash and cash equivalents (money). Their market value is $650 billion, so to turn that value into iPhones, the investors would all have to sell their shares and then buy iPhones for one billion people. In reality though, with everyone selling that many shares at one time, the price would crash, so they may only realise something like $200 billion.
So market cap does not equal company cash, or even company assets.
It's more fun reading their foolish posts. They keep harping on your well worded statements, now they have lost track of what they were talking about. "So you admit the 920 had it first ?"
Loved the "Apple is 1 Google above Exxon", considering that the original use for the word "Google" was a gigantic number, 1x10^1,000,000 if I recall correctly...
Takes on a bit of a different meaning if you look at it that way
Wtf is this -> 1x10^1,000,000? - 1x10 is 10, so 10^1,000,000. And a googol is only 10^100.
Yes, you keep telling yourself that. We are not talking about companies that never made any profit that went under during the dot com bubble. I was trading around that time so I definitely know about those companies. If you believe Apple is one of those, I have a bridge I want to sell you. They are/will be selling double the number of iPads and iPhones compare to last year when the stock was around $350.
I have a whopping 6 shares i purchased at 664.
I'm now 200 richer
That's a 16GB iPhone 5 with a new 2 year contract...
One googol (or google) is 1 followed by one hundred zeros. A googol-plex is 1 followed by a google zeros.
Back when Apple was $12.00 I had inherited a home from my parents. I was a huge Apple fan and watched everything very closely. I wanted to remortgage the house for $100,000 and buy $80,000 worth of stock and put 20k in the bank to make make the payments. I was so positive that they were gonna make a comeback. Although all the analysts insisted they were doomed, I had a feeling that with Job's was gonna comeback and pull his "baby" from the fire. The woman I was living with and engaged to, said that if I did something that irresponsible she would leave. I was just a bartender and how could I possibly know more than all these experts that said it was over for Apple. I began to doubt myself and I didn't do it. We ended up splitting up anyway...I always thought it was too late to jump in. I'm some special kind of idiot that's for certain!