Apple Inc. took 38 years from IPO to 1 trillion.
Apple approaching 2 Trillion Market Capitalisation after running near about 60% in 2020 alone
Now, forward Price Earning Ratio stands at 30, compare to 22 times average for S&P500.
Apple equals to total market capitation of Russell 2000 Index…
And by the way, Apple is nearly 7% of the S&P 500.
Records are meant to be Broken… Congratulation, You did it again.
However, to cross 2 Trillion threshold, the Apple stock needs to trade as high as $467.77 before its planned stock splits at the end of the month. Apple closed just above $458 on Monday.
So Far so Good:
Now, it is high time to play the devil’s advocate. Please consider the followings,
“FIRST” – More Less same Revenue from last 6 years…
Apple Revenue in Billions USD Dollars:
- 2020: 272 (estimated*)
- 2019: 268
- 2018: 266
- 2017: 229
- 2016: 216
- 2015: 234
Revenue stalls but still Tim Cook’s lead Company achieving unprecedented threshold. How ?
a). Massive Stock Buy Back Programs helping beats earning each quarter.
b). Rising Cash by Selling long dated Bonds whose proceeds are used to repurchase stock – therefore company’s EPS and stock prices continue to soar.
“SECOND” – Still, Apple is a must-own Stock for Market Participates, because of,
- Weightage in S&P 500 – How & where all those EFT Money would flow, then ?
- There is no alternative to their Hardware / Software Prowess – ofcourse, just yet.
- Secrets like Electric Car Project, code-named as “Titan”, Internet Satellites and Artificial Intelligence Projects, etc… AND, of course Free Cash Balances.
One Trillion to Two Trillion Dollars in less than 2 Years is not discounting all the positives ?
“Is it not the 2000 and 2007 is underway all over again ?
As Upton Sinclair is credited with saying, “it is difficult to get a man to understand something when his salary depends upon his not understanding it.”
Thanks for Reading.
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