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Apple's Stock Price Tops $410 to Reach All-Time High
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To big means if they go bankrupt they take the entire economy with them.
An example of other companies to big to fail would be things like GM, and Exxon. Due to the depression we are in/went threw new laws and rules are kicking in.
In some ways it does punish them for getting to big but no way in hell Apple not going to get classified as a company Too big to fail.
Any company that gets classified as too big to fail gets slap on them some more heavy handed regulation on what risk they are even allowed to take. From what I read on all that the limitations that get placed on those company encourage them to break up into smaller companies that have less regulation put on them.
Pink∆Floyd;13371886 said:
It's a month before next earning call, I'd say in the 430-450$ bracket building up until after the earnings day, then rebound back 2-3% during the following few weeks. Hopefully it might bounce again after that and be in the 480-500$ bracket by year end.
The "too big to fail" designation has rarely been used with non-financial institutions. It was used with the American auto industry because in a sense, the American auto industry is a national symbol. For banks though, it is used to mean that the bank in question is too deeply entrenched within the economy to be allowed to simply fail.
There is a lot that goes into putting the "too big to fail" stamp on a company. Having a large market cap is not enough. So Apple is not going to get that stamp anytime soon.
I'm pretty sure Petrochina peaked at over a trillion in it's debut in Nov. 2007
http://www.guardian.co.uk/business/2007/nov/06/china
http://articles.moneycentral.msn.com/Investing/Extra/PetroChinaWorldsFirstTrillionDollarCompany.aspx
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA1jwRD9tCuA
http://www.marketwatch.com/story/petrochina-soars-to-1-trillion-market-cap-in-debut
.
Of course it's worth that. The stock market facilitates trading of the shares and jillions of shares are bought and sold every day. Today that's the price whether you are selling or buying. (more or less anyway).
If there was a 10:1 split and AAPL was $40.00 a share, would it seem worth it to you then?
"Well Yeah" is probably the answer. And so I'll try to help you along below:
It's the very same thing if they split it down 10:1. You'd just have that many more shares on the market. It might allow more average joe's like you and me to buy shares. Like say you bought 1 share per month at $40.00 as part of your retirement savings plan. Easy to do if the shares are $40.00 and harder to do monthly if it's $400.00. Bershire Hathaway stocks are like 100 grand per share! Same deal though, there are just less of those shares in circulation.
If you study financial statements for a company you can come to your own idea what a company's shares are worth. Some people trade stocks for a living and they can help you to understand how and why a company might possibly be worth XXX dollars per share.
For instance if you liquidated all of Apple's assets right now, sold all their real estate etc etc. I think the liquid asset value would be something like $65.00 per share right now - a long ways from $400 you might say, but then if you consider that this is a company that is a going concern with yearly profits of XX jillion dollars and XX% growth, then you might see that people do want to pay more than the liquid asset value for the company - for the future potential (almost certain) earnings. Being a part owner of a publicly traded company is what you get when you buy shares in that company. Right now each share is worth $400.00 - period.
Would you sell your AAPL shares right now for less than the "Market" value? I see stupid adverts in Kijiji of these bottom feeder pawnbroker types, who are offering to pay you $1300.00 CASH MONEY for every ounce of gold you bring to them! (when the going rate today is something like $1800.00) What a joke! but suckers do that all the time. . People do it all the time when they sell a used car or any crap on Pawnstars etc. But the stock market pretty much guarantees you are going to sell your "stock" for the fair current price. The sheer quantity of buyers and sellers guarantees you will get your price.
BUT - if the market has 90% gnomes of zurich robots running the thing, it's a different story, and that's where we are today. The average joe doesn't make any difference, but the stock selling robots controlling jillions of dollars do make a big difference when they play. IF they ALL decide to sell at the same time, you get the mother of all crashes.
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I opened an account at Schwab, many years ago. Bought what was for the time, being 12 years old, a tremendous investment of 20 shares in Apple.
At the time, if you adjust for it splitting 4:1 over time, I did so for ~$8 a share.
I will let you decide whether or not this was "silly". The average person *can* participate in the market via a discount broker like Schwab. They won't make money hand over fist, and indeed the "average investor" is at times an idiot, but it's doable.
What a great post - this is, what it's all about. People in the market perceive Apple to be worth 400$.
Now your last paragraph clearly states the problem with this stuff, and it just proves:
- people fell for the same argument during the dotcom-bubble
- people fell for new mortgages calculated on the tremendously higher "market value" of their homes
- people fall for "hype" in the current economic situation (e.g. not only Apple, but Facebook's perceived value, Google's perceived value)
Therefore I come to the conclusion that we are currently experiencing the Dotcom2-Bubble - and some people know it. That's why gold skyrockets mor than Apple stock price (same applies to Yen and CHF).
Yep. Imagine what will happen if we only get the iPhone 4s. That first step will be a doozy.
I'm a happy investor.
More money to buy Apple products!
That would require selling them in the first place though
I own Apple stock and this makes me very happy, I keep hearing people say it can't go up anymore but it does. I've been a true believer in Apple for the better part of 5 yrs, I'm also a huge fan and love their products!
I heard the talk when Steve Jobs Stepped down that they would go down, but what Steve Jobs created is Apple! A company of innovators and a great sense of quality, Steve Jobs put his soul into the workforce of Apple. They will continue to innovate in a Steve Jobs fashion, and Tim Cook will lead the way!
I only hope and pray Steve Jobs stays on board to watch his soldiers carry Apple on
!
I'm sure there is a few Steve Jobs in Apple waiting for their turn to speak, or maybe they're speaking now?
I heard the talk when Steve Jobs Stepped down that they would go down, but what Steve Jobs created is Apple! A company of innovators and a great sense of quality, Steve Jobs put his soul into the workforce of Apple. They will continue to innovate in a Steve Jobs fashion, and Tim Cook will lead the way!
I only hope and pray Steve Jobs stays on board to watch his soldiers carry Apple on
!I'm sure there is a few Steve Jobs in Apple waiting for their turn to speak, or maybe they're speaking now?
It's easy to understand.
The small business comes and goes. And no one gives a **** about them. The government do not. But they forget that small business also is one pillar of the economy and helps to keep things running smoothly. Without it things would be much worse.
But if you are large enough and you start to go under (like some of the big banks, car manufactures and insurance companies), the government bails you out. Ie the large company can not do so well through whatever reason and be rewarded with a large cash handout.
Not fair at all. If a large company had bad times it should be allowed to fail. And a better company take it's place. But no the government cries look at all the job losses if they go under and bails them out. And the sad part is as soon as they get the bail out they make a new strategy to get their company good again. And number 1 on this list is always cut jobs to save money.
This is why if you are very large the government will not allow you to fail. Mind you, bribing certain government officials always helps to make the decision to bail you out much easier
And yes I think company providing campaign contributions or other ways of funding the government = a bribe.
Just open an account
Who charges high commissions these days?? Merrill Lynch. Vanguard. Among standard stock houses, that's about it. I'm sure that Scottrade is great, but it has far from the lowest prices and does not have the best reviews. Assuming that you are not trading one share at a time, every other day, the trading charge is not a significant element in investment.
http://online-stock-trading-review.toptenreviews.com/
Who charges high commissions these days?? Merrill Lynch. Vanguard. Among standard stock houses, that's about it. I'm sure that Scottrade is great, but it has far from the lowest prices and does not have the best reviews. Assuming that you are not trading one share at a time, every other day, the trading charge is not a significant element in investment.
http://online-stock-trading-review.toptenreviews.com/
Say what?
I trust you mean you're a happy investor in Apple. What I don't understand is how that would provide more money to buy Apple products, unless you divested your investment in Apple? Having you money tied up in stocks prevents you from making other purchases.
I'm a happy investor.
More money to buy Apple products!
I trust you mean you're a happy investor in Apple. What I don't understand is how that would provide more money to buy Apple products, unless you divested your investment in Apple? Having you money tied up in stocks prevents you from making other purchases.
To those saying that $400 for a share is expensive, it's about percentages, not just dollars and cents. You can invest $400 in 1 share of AAPL or 40 shares of Ford, still about $400. Obviously you would want 40 shares of AAPL but just because you own more shares of Ford, doesn't mean you will make more money off of it.
While AAPL doesn't grow the most percentage-wise, they are a good company and will surely go up.
While AAPL doesn't grow the most percentage-wise, they are a good company and will surely go up.
Ooooh, SOCIALISM. Now I understand.
(but I jest)
You don't need to worry about that. If MS can continue to do what they did for all these years and still be in business, then Apple should have no problem. Others have set the bar pretty low already.
Can anyone say $420!
Glad I didnt sell yesterday. I cant believe how many people on here seem so uneducated in finances. Dont you realize the price of the stock is nearly irrelevant? Its all about percentages.
A 10% gain/loss is a 10% gain/loss on your investment regardless of what price or how many shares you have.
A $800 investment on a $40 stock will give you 20 shares
OR 2 $400 shares of AAPL, but either way a 10% gain is making you $80
Glad I didnt sell yesterday. I cant believe how many people on here seem so uneducated in finances. Dont you realize the price of the stock is nearly irrelevant? Its all about percentages.
A 10% gain/loss is a 10% gain/loss on your investment regardless of what price or how many shares you have.
A $800 investment on a $40 stock will give you 20 shares
OR 2 $400 shares of AAPL, but either way a 10% gain is making you $80