If you're new to AirPods, considering buying a pair, or just want to pick up some new tips.
Analysts Look Toward $1000 Share Price, $1 Trillion Market Cap for Apple
Over the past two days, a couple of high-profile research analysts have issued reports predicting that Apple's stock will reach the $1000/share milestone within the next year or two, a move that would see that company's market capitalization push toward an unprecedented trillion-dollar market capitalization.
Yesterday, analyst Brian White issued his first research note on Apple in his new position with Topeka Capital Markets. White had previously worked at Ticonderoga Securities, which ceased operations earlier this year. In his initiation report for Topeka, White offers a 12-month price target of $1001 for Apple, citing the appeal of 4G LTE, booming growth in China, and an expected Apple television set as drivers for the company's growth.
We are initiating coverage of Apple with a Buy rating and a 12-month price target of $1,001.00. Driven by an ever expanding portfolio of innovative products, a growing integrated digital grid, unmatched aesthetics and a brand that is able to touch the soul of consumers of all backgrounds, Apple fever is spreading like a wildfire around the world and we see no end in sight to this trend. As such, we believe the Apple story still has a long way to play out in the coming years and we expect the next 12-18 months to be particularly exciting for the Company on multiple fronts.White also points to Apple's dividend and share repurchase program, with growth of that program in the future, as an additional driver for investor interest in Apple's stock.
Meanwhile, Piper Jaffray analyst Gene Munster weighed in with his own report early today, and while his official 12-month price target for Apple moves from $718 to $910, he believes that the stock will roll on to reach $1000 in 2014.
While our 12-month price target is $910, we believe shares of AAPL can reach $1,000 beyond our one year price target window, specifically in 2014 when we believe investors will begin to factor in CY15 numbers. Even conservatively applying the 12x forward year EPS multiple (CY13) that Apple is currently trading at to our CY15 estimate of $80.18, we reach a $960 share price. Furthermore, we believe factoring in an Apple Television could add more than $4 in EPS (5%) by CY15, which could yield over a $1,000 share price (12 * ~$84).Munster estimates that half of the predicted $400 billion growth in Apple's market cap will come at the expense of its competitors, while the other half will come from new money entering the tech sector.
Given Apple's current share count of roughly 930 million, a $1000 price would see the company pushing toward a market capitalization of $1 trillion. As we noted last month, Microsoft set the standard for highest market capitalization for a publicly-traded company back in 1999 at $604 billion. Apple is roughly $20 billion short of that number as of today, but when adjusted for inflation, Microsoft's peak market cap would have corresponded to over $800 billion in today's dollars.
[ 113 comments ]
Top Rated Comments
(View all)
91 months ago
Its only a matter of time before AppleNet becomes self-aware and our iDevices attack us and start WWIII.
91 months ago
A bubble is a bubble is a bubble ... ;)
("wise" investors sell if everyone else is buying - and remember that you'll almost never manage to sell a stock exactly at its peak, or buy it at its low point)
("wise" investors sell if everyone else is buying - and remember that you'll almost never manage to sell a stock exactly at its peak, or buy it at its low point)
91 months ago
And today, Microsoft is worth $250bn. Nobody could have possibly foreseen the loss of 75% of their market cap (based on inflation adjusted numbers) in the late-1990's, but surely enough...
Apple cannot simply keen on growing forever and ever. My predication is that there will be a big crash some time over the next few years. Probably 2015-16, especially if they reach $1000 per share by 2014.
There is no such thing as the perfect company, or the perfect stock. Investors need to realise this, because AAPL is looking pretty perfect at the moment and that's just going to fuel overconfidence.
Apple cannot simply keen on growing forever and ever. My predication is that there will be a big crash some time over the next few years. Probably 2015-16, especially if they reach $1000 per share by 2014.
There is no such thing as the perfect company, or the perfect stock. Investors need to realise this, because AAPL is looking pretty perfect at the moment and that's just going to fuel overconfidence.
91 months ago
I love Apple but when you start seeing predictions like this it's time to sell. And I'm not talking about Apple specifically, I'm talking about the entire market. Bernanke and friends have succeeded in blowing yet another bubble with cheap money that will burst and take everything with it. Get ready for Mad Max.
91 months ago
This stock is going to be traded mainly by large firms soon as the average Joe won't be able to purchase stock and those prices.
91 months ago
Berkshire Hathaway stock shares go for like $121,000 a share. Market cap isn't this big though. Apple wouldn't be breaking any records hitting $1K. Maybe for the NASDAQ, but not in history.
91 months ago
"I got in at $535"
"I got in at $12"
Well, I say poop on all of you.
I didn't get in at all.
Sure, go ahead, rub it in...I'm a jerk. :o :p ;)
"I got in at $12"
Well, I say poop on all of you.
I didn't get in at all.
Sure, go ahead, rub it in...I'm a jerk. :o :p ;)
91 months ago
Be careful what you wish for ...
Hate to be a downer here, but ...
Does anyone remember Iomega's stock rise and quick crash? A hot commodity can either fail because it hits saturation or something out of the blue takes its' place. In the case of Iomega the recordable CD killed them. I fear Apple's failure will be saturation with nothing new in the wings or a way to lower pricing on their current products to such a point new markets open up.
FYI - I have Apple gear and love it, I also had Iomega gear and now use HD's and recordable DVDs for backing up.
Hate to be a downer here, but ...
Does anyone remember Iomega's stock rise and quick crash? A hot commodity can either fail because it hits saturation or something out of the blue takes its' place. In the case of Iomega the recordable CD killed them. I fear Apple's failure will be saturation with nothing new in the wings or a way to lower pricing on their current products to such a point new markets open up.
FYI - I have Apple gear and love it, I also had Iomega gear and now use HD's and recordable DVDs for backing up.
[ Read All Comments ]
Apple will debut its rumored television service on Monday, and ahead of the event, The Washington Post has shared some new details on the planning that has gone into Apple's TV service.
When...
LG recently debuted a new 32UL950 32-inch UltraFine 4K display, but this latest model, priced at $1300, wasn't designed in partnership with Apple.
It still shares quite a few design...
Nomad is a company that creates useful accessories built around rugged simplicity, and in the past it has released iPhone cases, Lightning cables, and Apple Watch straps.
This year, Nomad...
For this week's giveaway, we've teamed up with Tile to give MacRumors readers a chance to win a set of Tile Bluetooth trackers that are designed to help you keep track of your most precious...
Apple CEO Tim Cook is in China this week ahead of the annual China Development Forum that promotes economic growth in the country.
Cook was photographed at an Apple Store in Beijing's...
Artist Billie Eilish has achieved a new streaming milestone on Apple Music, breaking the service's all-time record for users "pre-adding" an album to their libraries ahead of its release....
Apple Music recently updated the New Music section of the "Browse" tab with a small refresh that highlights an assortment of different playlists from various musical genres. Apple sometimes...
Apple has inked a deal with Vox for Vox to become a part of its upcoming subscription service that will be available in Apple News, reports Bloomberg.
Vox is owned by Vox Media, which also owns...
