APPL Passes 10% of all NASDAQ Value

[cambookpro]

http://9to5mac.com/2012/02/09/aapl-...ysts-target-half-a-trillion-dollar-valuation/

Apple have hit an all time stock high. Currently $496 per share.
Means Apple is currently worth over $60bn more that Exxon Mobil (at this moment) and worth more that Microsoft and Google combined.

Thoughts?

 

[rdowns]

Market is smiling at AAPL today. Three analyst upgrades coupled with credible iPad 3 announcement and it's popped about $19. Incredible. My portfolio runneth over.

 

[Rodimus Prime]

I think this is the argument they are using to revalue the NASDAQ and how it is figured. One company is to large of a percentage of it and as such its swings either way has way to great of an effect to make the index worth anything.

 

[neiltc13]

Market is smiling at AAPL today. Three analyst upgrades coupled with credible iPad 3 announcement and it's popped about $19. Incredible. My portfolio runneth over.

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

 

[rdowns]

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

Does anyone really know what moves the market? There were 3 upgrades by analysts and as hard as it may be to believe, people follow their comments and act.

Might also have some who think some iPad 3 sales might happen in the current quarter and a bigger affect on earnings than an iPad 2 nearing its first anniversary.

 

[*LTD*]

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

The anticipated market effects thereof (and to Apple's bottom line.) It's an iPad. And a new one at that. iPad proliferation in 2012 will be insane. People understand this.

 

[Rodimus Prime]

I just don't get this at all. Why does a prediction of an iPad 3 make the stock price jump?

Everyone knows there will be an iPad 3. Who are these people who are sitting waiting to buy stock until these predictions are made?

Apple seems to have more from emotional views than any other company. Great for pushing it up but at the same token that can become VERY VERY painful.

 

[h00ligan]

We will obviously see an ebb and flow, but I wouldn't be surprised for aapl to finish north of $600 this year.

 

[dukebound85]

I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

 

[BaldiMac]

I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

By what measure?

 

[quagmire]

I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

Not for the people who bought AAPL back in 2004 when it was only $20 a share..... I wish I had money to buy AAPL then. I would be swimming in cash.

 

[rdowns]

I really feel it is stupid to buy Apple.

They are way, way, way overvalued imo

Based on what, headlines? I bought in at $11.24 and have added to my position several times, most recently about 4 months ago. If you really know Apple and follow the stock, you wouldn't say that.

 

[Melrose]

They are way, way, way overvalued imo

The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

 

[dukebound85]

The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

 

[TwinCities Dan]

Based on what, headlines? I bought in at $11.24 and have added to my position several times, most recently about 4 months ago. If you really know Apple and follow the stock, you wouldn't say that.

Wow! I felt lucky that I hopped in around $80.

 

[BaldiMac]

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

So, you have no facts or experience. You can just tell.

You would say that

Of course, he did back his opinion up much better than you did.

 

[h00ligan]

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.



You would say that

Do you think google should be priced higher than apple?

 

[Rodimus Prime]

The whole point of the stock market is what it's value is in the eye of the buyer; I don't mean to argue, but that in itself means the company is that valuable. I agree I'd never pay that much for stock, but the value is decided by the market.

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

 

[dukebound85]

So, you have no facts or experience. You can just tell.



Of course, he did back his opinion up much better than you did.

No need to get hostile

Did I not merely just give my opinion on it? It is not without precedent that companies rise...then fall. They can't rise forever. I am not alone in this line of thought too. Merely google Apple being a bubble

Of course LTD would back it up with whatever Apple is doing Though him saying ipad is hardly what I call backing up

 

[vvswarup]

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

Price does not equal value. A $5 stock may be overvalued. A $1000 stock can be undervalued. Investors buy stock based on what they expect the company to earn in the future.

A common ratio in investing is the price/earnings (P/E) ratio. Apple's P/E is around 14. That means that investors are paying $14 for every dollar that Apple earns. Another way of looking at is that if Apple's earnings were to stay the same for the next 14 years, they will have earned an amount equal to today's stock price.

I am interested in knowing what Yahoo!'s earnings multiple was at the time it was trading at $300 per share.

----------

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.



You would say that

How do you define value? Because price does not equal value. In the words of Warren Buffett, price is what you pay and value is what you get.

Explain what you mean by value.

 

[h00ligan]

Google p/e 20.55
Amazon p/e 135.04
Netflix p/e 29.xx
Microsoft 11.15

Dow average 15-25

Tech sector 16.30

Apple's p/e is not just fine, it's good. It's fallen from 32.xx this time last year.

 

[*LTD*]

Of course LTD would back it up with whatever Apple is doing Though him saying ipad is hardly what I call backing up

Because they're doing everything right. You think you've seen growth?? This is nothing. The kind of growth Apple will experience over the next 5 years will be unprecedented. LOL jokes on you if you can't fathom what the iPad means to the industry and just where it's headed over the next few years. It'll put the iPod phenomenon to absolute shame.

 

[rhett7660]

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

So you are comparing the dot com bust to today's market???

 

[Melrose]

True, but markets do correct themselves (ie bubble)

While I don't follow stocks for a living, I do follow it leisurely and feel that apple's growth it has been experiencing the past 5-6 years is not sustainable and does not warrant being valued that much higher than other major companies. Call it my common-sense gut check and hence I would never consider buying near this price.

True, but Apple has been sustaining this trend for many years now. I still wouldn't rush out to buy any, but it doesn't give any hint of going anywhere soon.

Over value can also mean that people are being stupid in mass.
An example from the pass is look at the dot com bust. Yahoo for example went from $300+ and many experts were saying it was over valued to very quickly dropping to around $100. It was pretty clear Yahoo was massively over valued at the time as it dropped like a rock at the bust.

Bust tend to take out the over value of a market or a company.

I'd hardly call Apple overvalued, though. They have a solid record of introducing well-received, well-liked products with strong repeat buyers. They've hardly cropped up overnight, and if they fail it's likewise not going to happen overnight.

Comparing a successful corporation to a silly fad is a bit of a stretch. The dot-com bubble was in and out in just a few years. Apple has been innovating since they incorporated.

 

[thejadedmonkey]

You know, they must be doing something right!