Apple's Stock Price Crosses $200 Mark to Reach New All-Time High

[DeepIn2U]

It's insane how overpriced Apple is right now.

Profits: $11B. So stock market is saying they're worth 19x as much as they make in a year. Also, this is steady state - there's no reason to think spending will go down or revenue will go up. That's why Apple is already paying dividends. Which aren't very good.

Diversification: Mac sales are down. Apple is even more dependent on the iPhone than ever. If someone rolls out the thing that turns the iPhone into the iPod, Apple has nothing to fall back on. Also, growing services is really just growing profits per iPhone - there's no reason to think that when the iPhone becomes irrelevant, their services would survive.

I see Apple as very risky with little chance of reward. I bought at $140 last year and sold at $190. Great that it jumped to $200 - we're getting closer to the edge. You can either sell now or fall off the cliff.

I'll buy back in when it's down to $160 or so (assuming nothing changes. If that mystical iPhone disruptor shows up, obviously I won't be buying Apple at all.)

Depends on how you look at it.

Apple is less dependent on iPhones revenues than last year by sheer revenue percentage overall. Last year it was 70% of their total global revenue based on iPhone's. This quarter it dropped to 60% while services and 'other' revenue climbed significantly.

Apple's increased revenue in other areas IS indeed heavily reliant on the iPhone unit sales numbers.

 

[CharlesShaw]

Back in 2015 I bought AAPL shares equal to the cost of a new 12” MacBook which I really wanted but really didn’t need.

It’s been fun to play along at home during the quarterly reports.

Now if only I’d been wanting a Mac Pro back then.

 

[ftaok]

AAPL was never $1-$2. $500 wouldn't have bought you much more than 50-75 shares back in 2002, so don't feel too bad.

If anyone's head should be exploding, it should be Ronald Wayne's. Had he kept his 10% stake in AAPL in the 80's instead of selling it back for $800, he'd be worth almost $100B today.

Actually, AAPL has been well under $2 many times. Believe me, I know. I was talked out of buying it right about the time Jobs came back. I remember talking to my advisor and thinking that the worst case would be IBM buying Apple for the name and I'd break even.

Split adjusted, it was $1.85 per share.

EDIT - Sorry, I went back and read the post that you were replying to. Yes, back in 2002, the stock was not down in the $1-2 range. It was in the $30's or so.

 

[IllIllIll]

Actually, AAPL has been well under $2 many times. Believe me, I know. I was talked out of buying it right about the time Jobs came back. I remember talking to my advisor and thinking that the worst case would be IBM buying Apple for the name and I'd break even.

Split adjusted, it was $1.85 per share.

EDIT - Sorry, I went back and read the post that you were replying to. Yes, back in 2002, the stock was not down in the $1-2 range. It was in the $30's or so.

Sorry, I should have worded that better.

I still remember the days back around 1999 right before Jobs came back, when AAPL was on its deathbed. I could have bought a lot more shares back then compared to 2007 but hindsight is always 20/20. Nobody had any idea AAPL would become the world's most valuable company less than 20 years later. I'm still happy with the ~10,000 shares I do have now though.

 

[az431]

Tbh this is just too much, they barely turn a dividend, the price is purely based on speculation and emotion...

It's clear from your comment that you know very little (well really nothing) about the stock market, business, or how companies are valued.

Apple is one of the few tech companies that even pays a dividend, and its valuation is a fraction of its FANG peers. If Apple was valued like Netflix the stock would be trading for over $2,000 a share. Then you have companies like Tesla that have never turned a profit yet trade for 50% more.\

I suggest picking up some basic books about investing and business on Amazon, and spending 15 minutes a day on sites like MarketWatch. Then check back in when you learn something.

 

[triton100]

I own Apple stock, but the "doom and gloom" symptoms don't happen overnight. I think AAPL is a mediocre consumer company nowadays, but to its shareholders they are great.

Safe bet is to put limits on your AAPL stock and re-buy on the swing if/when there is one. I've done it with AAPL many times, and it's been pretty straightforward to ride the wave since they split.

Are you selling any now on today’s upturn ?

 

[Krayzkat]

This mad me smile today.

This is good for me as I purchased just a handful at $187 ... so the trade cost is now covered.

Don't forger to factor in your selling fees too!

 

[ipponrg]

Are you selling any now on today’s upturn ?

No, I have trailing stop %

 

[wigby]

You still need devices to serve the services. Steve Jobs believed that if you want to be a great hardware company, you have to write great software. Or something like that.

Of course you need devices but they are shifting to wearables and will soon shift to smaller things like AirPods and iGlasses and soon implants and other items that are no longer visible. With each iteration, these things become less important to the user experience and thus, become less relevant to the users. So Apple customers in the future won't care about shiny new screens and the feel of a device in their hand. They will only care about Siri and cloud services that Siri provides to everyone.

 

[norbinhouston]

Of course you need devices but they are shifting to wearables and will soon shift to smaller things like AirPods and iGlasses and soon implants and other items that are no longer visible. With each iteration, these things become less important to the user experience and thus, become less relevant to the users. So Apple customers in the future won't care about shiny new screens and the feel of a device in their hand. They will only care about Siri and cloud services that Siri provides to everyone.

Last I checked even AirPods are devices. Implants are devices. Lol. Cloud services dont just magically happen.

 

[IllIllIll]

AAPL rallying again. Might hit $1T market cap today.

 

[ripper998]

AAPL was never $1-$2. $500 wouldn't have bought you much more than 50-75 shares back in 2002, so don't feel too bad.

If anyone's head should be exploding, it should be Ronald Wayne's. Had he kept his 10% stake in AAPL in the 80's instead of selling it back for $800, he'd be worth almost $100B today.

It was never that price specifically but if you take into account the stock splits that happened from then to now it works out that way. I mean I wouldn’t be a millionaire or anything but at least a couple hundred K.

 

[IllIllIll]

It was never that price specifically but if you take into account the stock splits that happened from then to now it works out that way. I mean I wouldn’t be a millionaire or anything but at least a couple hundred K.

Not even close.

If you invested $500 in 2002, you could have bought about 16 shares, assuming a price of $30/share (which is what the price was around back then).

The stock split 2-for-1 in 2005, so you'd have 32 shares. Then it re-split 7-for-1 in 2014, so you'd have 224 shares.

224 * $205/share today = $45920. Not a bad chunk of change but not "at least a couple hundred K" either.

 

[triton100]

No, I have trailing stop %

Sorry, What does trailing stop % mean ?

 

[ipponrg]

Sorry, What does trailing stop % mean ?

Let's say I bought the stock for $10 per share. If I set a trailing stop at 15%, that means my broker will try to sell my shares @ $8.50 if the share price drops to that amount.

Now let's say the share price never drops and it rises to $20. My trailing stop trigger is automatically now at $17, which means the broker will try to sell my shares for that value if the share price drops to that amount.

The trailing stop always adjusts to the ceiling of what your highest share price was at when you owned it.

This basically allows you to protect your stock in the event that it continues to drop and/or when you feel you'd be happy with the profit. Because I'm not a day trader, I usually set these triggers to help with buys/sells. With this, you can also activate the Dividend Re-Investment Plan (DRIP) which reinvests your dividends back into the stock.

This is another form of investing aside from your employer's 401K, IRA, real estate, and mutual funds.

You can read more about it here: https://www.investopedia.com/articles/trading/08/trailing-stop-loss.asp

 

[triton100]

Let's say I bought the stock for $10 per share. If I set a trailing stop at 15%, that means my broker will try to sell my shares @ $8.50 if the share price drops to that amount.

Now let's say the share price never drops and it rises to $20. My trailing stop trigger is automatically now at $17, which means the broker will try to sell my shares for that value if the share price drops to that amount.

The trailing stop always adjusts to the ceiling of what your highest share price was at when you owned it.

This basically allows you to protect your stock in the event that it continues to drop and/or when you feel you'd be happy with the profit. Because I'm not a day trader, I usually set these triggers to help with buys/sells. With this, you can also activate the Dividend Re-Investment Plan (DRIP) which reinvests your dividends back into the stock.

This is another form of investing aside from your employer's 401K, IRA, real estate, and mutual funds.

You can read more about it here: https://www.investopedia.com/articles/trading/08/trailing-stop-loss.asp

Ah got you thanks. You mean like stop losses and stuff like that. Good stuff. Good luck with it all.

 

[JOBS-3:16]

It amazes me when I see my posts getting banned by MacRumors moderators, yet there are people all throughout this website hurling insults left and right. Well, if you're going to ban me, I suppose I should give you a good reason. You, the moderators who have removed my posts, are a bunch of fascist *******, no doubt living in your mothers basement, who've clearly gotten your asses kicked all throughout your pathetic lives, and are now making a half-assed attempt at a display of dominance/power by removing the posts of whomever you see fit. Let me give you a dose of reality...you're nothing, you have always been nothing, and you will always be nothing. I'm sure you've rarely been laid, and are complete ****ing nerds. Enjoy your life as a "Forum Wizard", or whatever euphemistic title they've given you whiny ass bitches, to make you feel better about your dead end jobs here at MacRumors. Especially you Weasleboy, you ****ing pansy. To the rest of you, it's been a pleasure

 

[triton100]

It amazes me when I see my posts getting banned by MacRumors moderators, yet there are people all throughout this website hurling insults left and right. Well, if you're going to ban me, I suppose I should give you a good reason. You, the moderators who have removed my posts, are a bunch of fascist *******, no doubt living in your mothers basement, who've clearly gotten your asses kicked all throughout your pathetic lives, and are now making a half-assed attempt at a display of dominance/power by removing the posts of whomever you see fit. Let me give you a dose of reality...you're nothing, you have always been nothing, and you will always be nothing. I'm sure you've rarely been laid, and are complete ****ing nerds. Enjoy your life as a "Forum Wizard", or whatever euphemistic title they've given you whiny ass bitches, to make you feel better about your dead end jobs here at MacRumors. Especially you Weasleboy, you ****ing pansy. To the rest of you, it's been a pleasure

Wowser I’m intrigued to know what post ban warranted this response.

 

[ftaok]

Wowser I’m intrigued to know what post ban warranted this response.

I had a post in this thread deleted because I quoted a post that got moderated. Perhaps it was the one in question. Seemed innocent enough, something about maybe Apple would update the mini now. My reply was a jokey "you wish". I hope I didn't set him off.

 

[LK LAW]

It's clear from your comment that you know very little (well really nothing) about the stock market, business, or how companies are valued.

Apple is one of the few tech companies that even pays a dividend, and its valuation is a fraction of its FANG peers. If Apple was valued like Netflix the stock would be trading for over $2,000 a share. Then you have companies like Tesla that have never turned a profit yet trade for 50% more.\

I suggest picking up some basic books about investing and business on Amazon, and spending 15 minutes a day on sites like MarketWatch. Then check back in when you learn something.

I study econometrics so I know a thing or two about valuing stocks. Technology stocks just don't adhere to any logical valuation principles other than emotion. For starters just look at the difference between the book value per share and the current share price and compare that delta to other more "classical" industries.