Share price Stories August 5, 2015

AAPL: 114.64

-3.80

The stock market can often seem an irrational place, and never more so than where AAPL is concerned. The company keeps reporting record sales, has typically out-performed analyst expectations, takes home almost the entire smartphone industry’s profits and has so much cash it scarcely knows what to do with it – yet its share price is falling.

AAPL stock has fallen more than 14% since April, wiping $113B from the company’s market valuation. It dropped 7% in the past month alone. That’s the equivalent of McDonalds vanishing into thin air. What gives?  expand full story

Share price Stories February 12, 2015

Two days after AAPL hits highest market cap ever, billionaire investor Carl Icahn values it at $1.3 trillion

Two days after Apple set a new record for the highest market capitalization of any company, valuing it at more than $700B, billionaire investor Carl Icahn has suggested the true value of the company is close to double this, at $1.3T.

Icahn, who is one of the company’s ten biggest shareholders with stock worth around $6.5B, says that a realistic valuation of the company would be 20 times its earnings per share. Factoring in Apple’s cash reserves of $178B, that would give a share price of $216–for a total company value of $1.3T.

Icahn notes that while he has previously been criticized for over-optimistic valuations of AAPL, 31 analysts have “dramatically increased” their earnings-per-share estimates in the past fortnight.

We have gained further confidence in our thesis, increasing the forecasted EPS for FY 2015 in our model from $9.60 to $9.70, and now believe the market should value Apple at $216 per share.  This is why we continue to own approximately 53 million shares worth $6.5 billion, and why we have not sold a single share.

Icahn has consistently urged Apple’s board to increase the pace of its stock buyback program, his last call coming at a time when the shares were trading at $100. At the time of writing, shares were trading at $124.88. Apple recently set another world record, announcing the highest ever quarterly profit of any company.

Share price Stories November 18, 2014

Analysts attending the Reuters Global Investment Outlook Summit in New York have suggested that Apple could eventually be valued at a trillion dollars.

Gains in shares of Apple Inc could take the world’s largest publicly traded company to a market capitalization of perhaps as high as $1 trillion, some of the country’s biggest investors said on Monday.

AAPL got two-thirds of the way there a few days ago, reaching $663B, since climbing further to $670B, and billionaire investor Carl Icahn suggested last month that the company should already be valued at a trillion dollars …  expand full story

The best 4K & 5K displays for Mac

Share price Stories September 11, 2014

Tim Cook

Big-name analysts seemed satisfied with what they saw and heard during Apple’s launch of the iPhone 6, Apple Watch and Apple Pay, reports Forbes. Summarising investor notes from a dozen major companies, Chuck Jones found the general feeling was that Apple had delivered what was expected.

The overall average of AAPL stock price targets was $109, against the current price of just over $100. Analysts pointed to a range of factors in forming their views, among them …  expand full story

Share price Stories September 1, 2014

PSA: Don’t be surprised (or worried) if AAPL stock dips after iPhone 6 launch …

If there’s one thing as certain as the hype when Apple launches a new iPhone, it’s the “Apple is doomed” messages when the new model(s) fail to meet every single analyst prediction, no matter how crazy. Apple could add a matter transporter function to the iPhone 6 and some analyst would be complaining that it only operates on WiFi when they were expecting it to use LTE.

Business Insider pointed to a set of CNN charts which show that, typically, the AAPL stock price is down a month after a new iPhone launch. But any similar dip we might see after the launch of the iPhone 6 is no cause for concern: with the exception of 2013, Apple stock has been climbing since the first iPhone was launched in 2007.

As ever, make your own investment decisions with the aid of professional advice, but there certainly doesn’t appear to be any reason to be spooked if the launch of the new iPhone leads to some investors selling their shares. “Buy on the rumor, sell on the news” is a very common approach.

Share price Stories June 9, 2014

Reminder: 7-1 AAPL stock split takes effect today

 

Apple’s first stock split since 2005 takes effect today, but the computers that track the stock price often forget to take that into consideration (above).

Why the 7-1 split? The lower buying price may open the door to more investments from smaller investors, and the ~$100 price would let it major indices list AAPL, opening the door to more investment. 

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