Greetings !!

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.

Team Rocket

 

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