Apple Inc. (AAPL) To Reach $1 Trillion Valuation [REPORT]

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Apple Inc. (AAPL) To Reach $1 Trillion Valuation [REPORT]

Apple Inc. (NASDAQ:AAPL) is already the world’s largest publicly traded company, with a market capitalization of around $670 billion, according to Thomson Reuters data. Microsoft Corporation (NASDAQ:MSFT) is in second place with a capitalization of around $409 billion.

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Apple: Backing from the big dogs

Steve Einhorn, a top executive at Omega Advisors Inc., called Apple “an attractively priced, double-digit returner” during the Reuters Global Investment Outlook Summit in New York. He also predicted that the company could “eventually” reach the trillion-dollar milestone.

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Billionaire activist investor Carl Icahn was another who spoke out on his hopes for Apple Inc. (NASDAQ:AAPL). Just last month he claimed that the company should use its $133 billion in cash reserves to buy back stock. He maintains that the company is undervalued.

On Monday he claimed: “Apple Inc. (NASDAQ:AAPL) is one of the best companies I would say of the last few decades.” He claims that market undervaluation of the company and its vast cash reserves mean that “it’s like a no-brainer to buy your own stock back.”

A regulatory filing from last week showed that Icahn owned around 53 million shares in Apple Inc. (NASDAQ:AAPL) at the end of last quarter. He refused to give what he thought was a fair price for Apple shares, claiming that it is “a question that is extremely hard to answer.”

 

Word on the Street

Most analysts are painting a more cautious picture of Apple Inc. (NASDAQ:AAPL)’s future. The average 18-month analyst target is $117 share, which would value the company at $686 billion. In order to break the $1 trillion barrier, prices would need to reach $167 per share.

Before you react incredulously to the idea of the stock rising 46% from its current price, remember that the stock has jumped 40% over this past year, largely due to strong sales of the iPhone.

Could the company break more records, or will we see another collapse of a stock market giant like during the dot-com boom?

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10 COMMENTS

  1. Your moronic argument has no merit. Most Virus writers never gave the Mac a second thought because the users are either insignificant children or duped techno-illiterates /seniors who don’t know any better – only 4% of the market. Macs are highly vulnerable because apple doesn’t have engineers, which is why Apple suddenly dropped its fraudulent marketing a couple of years ago and mysteriously suggested that everyone should by anti-virus software. I haven’t heard of anyone getting a virus on Windows recently unless they were completely clueless like yourself, even then it was several years ago…and I think, with Google’s Chrome Book, its simply impossible to get a virus. BTW, Are people still using macs? That’s hillarious! Keep churning away at those important “financial records”. :-)

  2. Haters gonna hate. My last PC was seven years ago, when a virus wiped out all my financial records on my home computer. Fortunately I was using the online version of Quickbooks and they were able to get the data back. Since that time, I have forbidden a PC to cross the threshold at my home, since all the teenagers use them for is gaming, anyway.

    I have never used antiviral software and never had a virus on my Macs. Possible? Yes, of course…but about 1/100th as likely as a PC. You can keep those unstable, virus-riddled, relics of another time, when “computer” was code for “unreliable.”

    Oh, and by the way, I bought AAPL @ 40. Yesterday, allowing for splits, it’s 830. Not too shabby.

  3. Apple is the biggest con job in human history…And to think this crookery is entirely made up of high school dropout monkeys with keyboards whose ‘raison d’etre’ is their ability to BS their media cronies… Base your earnings projections on how many times a sucker can be conned in their lifetime coupled with the Sucker Born Every Minute principle and you’ll have a more accurate target price than what these stock analyst crooks are trying to con you into believing.

  4. DEVVVV you are comparing apples to oranges. Walmart and Apple have different business models. One is a cost leader while the other is trying to continue its competitive advantage in high quality large margins. This is the reason they bought Beats (high margins).

    APPL could be a 1T company depending how the iPhone develops, iPay and the iWatch and anything they have down the pipeline.

    However I would have to disagree with Malcolm, I dont see AAPL hitting 20T not in this century anyways. 20T cap is outrageous, I wish it was possible that would be a very very nice return but its not going to happen.

    Just as a comparison the entire S&P 500 is 18.5 trillion.

    While im a die hard Android fan i own AAPL stock and not GOOGL.

  5. If you really want to see a real example of what your saying, go to Blackberry’s ticker Page news. Opptrends now delete posts in their comment Page that oppose to what they are writing about BlackBerry but yet they allow the bashing of Apple. I am Canadian and would like to see a Canadian company flourish, but Opptrends see my comments as bashing and trolling, whereas really I present constructive criticism. I don’t agree in how BlackBerry executives are operating that company or the fact they are relying on old BlackBerry handset designs. I made my point and Opptrends deleted my posts. How is investors able to accept a fair evaluation of what the general public thinks when the cards are stacked, this is misleading.

  6. Sorry I don’t agree with you Malcolm, look how big Walmart is as a example, due to the volume of products Walmart sells they provide better deals for the consumer. If Apple is making good money and is not desperate in making ends meet, I could see them operating in the same fashion as Walmart

  7. The question is if for the wider US economy if a single company should even listen to analysts goals and predictions of a $1T market capitalization, or is it more reasonable to say that the marketplace and customers served (Entertainment & Content Buyers forced to use Apple Platforms) has become too centralized where the marketplace doesn’t choose a winner.

    Indeed- many of these hedgefunds and investment firms seem to suffer
    a sort of tunnel-vision as a consequence of their own vested positions in Apple
    Stock. Instead of performing marketplace research, reccomending investment into
    companies which in a Pre-Apple economy would have been taken public and brought to the wider
    marketplace; often the response is to nod in agreement to each
    acquisition Apple makes.

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