Gene Munster: Apple could double over the next two years

8 Comments

  1. Jerry W Doyle said:
    My take: I think brother Gene is correct in his prognostication! I also feel similarly, that Apple will levitate to that level on the “Wings of a Dove.” And after reading Robert Paul Leitao’s comments a couple of blogs back corroborating my doubtlessness, I felt like waltzing across Texas starting from the dance hall in Luckenbach -:)

    As the Cajuns in South Louisiana and of LSU/Saints’ fertile sod say, “Laissez le bon temps rouler!” It’s boogie-woogie time on Bourbon followed with coffee and beignets patio-side at the Cafe Du Monde come sun rise with Apple being the principal subject for discussion!

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    July 19, 2019
  2. Gregg Thurman said:
    Accelerating adoption of Apple Watch (driven by medical advances), G5 iPhone upgrades (even though I have yet to see the benefit for mobiles), plus revenue enhancement driven by Apple TV+, Apple Music, News+ and Apple Card may not double revenue but they will have an outsized positive impact on net income growth. Throw in Apple’s massive share buyback program and EPS goes through the roof causing investor sentiment (expressed through higher PEs) that could drive AAPL above $400 in the “next couple of years”, and it wouldn’t take that much expansion in AAPL’s PE to accomplish it.

    And we haven’t even considered the resolution of the China/USA trade tiff and growth in India (which I see occurring near term).

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    July 20, 2019
  3. Dan Scropos said:
    I don’t see any scenario where Apple doubles over the next two years. They have quite a few revenue drivers in the pipeline, as Gregg mentioned, but I see their trajectories mimicking that of Apple Music. The presidential election will be another driver. The markets seem to have grown fond of President’s Trump’s policies and someone that wants to raise corporate taxes to the pre-Trump percentage will not be multiple friendly.

    That said, a resolution to the trade war is the biggest short term driver. China is getting crushed in this battle, reporting 25 year low quarterly growth. A resolution will definitely benefit both sides, especially China.

    I’d be ecstatic, over the moon, to see Apple trading at even $300 in two years, but I’d love even more to come on here and say I was wrong if she touches $400.

    What is certain is that Tim Cook’s message of consumer privacy and user experience, the latter being Apple’s lifelong expertise, are starting to reap rewards of seeds sewn long ago. Facebook, Google and Amazon seem to be paying, to some degree, for years of privacy and/or antitrust infractions. There may be a material shift of money from some or all of those stocks into Apple.

    Long AAPL and anxiously awaiting Apple Card.

    Dan

    1
    July 20, 2019
  4. Paul Brindze said:
    One more revenue driver not on Greg’s list.: Apple Arcade. Most of us on this board are probably not young enough to fully appreciate its potential impact.

    This Fall?

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    July 20, 2019
    • victor castroll said:
      joke right paul?  arcade will be a rounding error

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      July 21, 2019
      • Dan Scropos said:
        So what? Its prime intention is to sell hardware and draw customers into the ecosystem.

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        July 21, 2019
  5. Norman Lotz said:
    The uncertain growth of iphone unit sales numbers is the predominant factor. Wearables, subscriptions, services to the base are all good, but at best they are a small add-on to the elephant in the room. Without this fundamental growth in the user base, why would the price double?

    Are we going to see iphone unit numbers grow 50% in two years? I don’t think so. Is the car business going to be material to the stock price? Are apples investments in content going to be hugely profitable?

    I haven’t heard of anything that would be the source of such business growth for such a large company. I think we’ll be lucky if the stock price doesn’t decline precipitously in the next month.

    imho

    N

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    July 20, 2019
  6. victor castroll said:
    it could also fall 50% in two years. but we won’t mention that…

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    July 21, 2019

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