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.
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.
The first London Value Investor Conference was held in April 2012 and it has since grown to become the largest gathering of Value Investors in Europe, bringing together some of the best investors every year. At this year’s conference, held on May 19th, Simon Brewer, the former CIO of Morgan Stanley and Senior Adviser to Read More
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?