“No tree grows to the sky.”
From “Apple’s Best Times Are Behind It. For Real This Time!” posted Sunday on the Monday Note.
Against common wisdom, against difficult odds, Apple rose to the very top of the tech industry. Now that they’ve become the first company to be valued at $2T, they’re certain to fall. Or maybe not…
Even as Jobs’ historic Apple 2.0 turnaround launched the company towards new heights with a string of successes — the iPod, the Intel Macs, the iPhone and the iPad — the doomsayers weren’t deterred. Each new high was an opportunity to declare peak Apple, it’s all downhill from here.
This brings us to the latest highest of highs. At last week’s close, AAPL was trading for $497/share, giving the company a market capitalization of $2.1T… that’s T as in trillion. Clearly, the skeptics say, this is unsustainable, no tree grows to the sky, the larger a company becomes the more difficult it is to sustain growth. That’s what many, yours truly included, thought when Apple became the first company to cross the $1T market cap line in August 2018. And yet the company has achieved the inconceivable and doubled its value in exactly 24 months…
As Bill Gates recently said, referring to Apple and other companies of its size:
“If you are as successful as I am, or any of those people are, you deserve rude, unfair, tough questions. The government deserves to have shots at you. That type of grilling comes with the super successful territory, it’s fine.”
My take: The doomsayers will not be deterred. Doesn’t mean the stock won’t go down.