From Jack Hough’s cover story, Apple’s Golden Moment:
After a 50% burst in the shares this year, will the $1 trillion figure mark a top? After all, the latest iPhone’s sales will fade next year, and the stock market is pricey. Many of the best smartphone markets look saturated or, in China’s case, tightly contested. Apple is also capable of self-induced stumbles, as Barron’s pointed out just last week (“Software Problems Bug iPhone Users”). For those who look for historical precedents, there’s Apple’s sumptuous $5 billion campus, bringing to mind ambitious buildings from Woolworth, Chrysler, and Sears that foreshadowed an eventual fall.
We don’t think the peak is near. Apple seems to be escaping its product supercycle peaks and troughs to post more-consistent year-to-year growth. That could have a lasting effect on the stock’s valuation, based on what Wall Street pays for other steady growers. Barron’s has backed Apple shares in recent years, starting at $76, split-adjusted, ahead of the move to plus-size phone screens (“For Apple, Bigger Is Surely Better,” March 22, 2014). The shares have returned 147% since then, versus 56% for the Standard & Poor’s 500.
My take: As bullish on Apple as I’ve ever seen Clarence Barron‘s weekly newspaper.