Apple’s next leg up

From Douglas McIntyre’s “Will Apple’s Market Cap Hit $3 Trillion Next Year” posted Christmas Eve on 24/7 Wall Street:

The Apple Inc. market cap is just shy of $2.26 trillion and up almost 80% this year. Some analysts believe the stock has much further to run. One [Wedbush’s Daniel Ives] has a price target of $160, compared to the current price near $130 a share. That would take the market cap to nearly $2.8 trillion. If Apple’s revenue handily beats expectations in 2021, that figure could well soar higher.

If Apple’s stock has done anything this year, it is outperform. Among the public companies with market caps over $1 trillion, it has done the best. Shares of Microsoft are up 42%, which has taken its market value to $1.7 trillion. Amazon stock is up 78%, which has driven a market cap of $1.6 trillion. Alphabet’s is up 27%, and its market cap is $1.2 trillion.

My take: Wait, what about the law of large numbers?

7 Comments

  1. Romeo A Esparrago Jr said:
    Like Schoolhouse Rock sings:
    “Three is a magic number”

    Merry Christmas Day!

    3
    December 25, 2020
  2. Dan Scropos said:
    With Apple at $300, Goldman Sachs doubled down on $192
    January 7, 2020
    In “Analysts”

    Isn’t the above pre-split, and doesn’t it represent a call of Apple shares going to a now split adjusted $48? FORTY-EIGHT??? And we think Hall’s *current* call of $75 is bad. Ironically, his new call is where Apple was 11.5 months ago. But that was, mind you, before Apple refreshed virtually everything and even introduced all new hardware and Services.

    This guy needs to face some sort of scrutiny. He’s a complete fraud. I’m okay with bad calls. It’s our jobs, both individually and/or collectively, to make the proper investment decisions. But it’s hard to sit idly by and watch someone not admit they completely misunderstand the brand power and interwoven connection of Apple and her customers.

    9
    December 25, 2020
    • David Drinkwater said:
      No swimming pool for Rod Hall this Christmas!

      5
      December 25, 2020
    • Mark Visnic said:
      Consider that Rod Hall’s objective may not be to be “right” about AAPL’s price trajectory but, rather, something else. It just might be creating volatility for hedge funds in exchange for trading flow from them.

      0
      December 25, 2020
  3. Michael Goldfeder said:
    A sand berm for Rod Hall to bury his head into will be much more practical.

    1
    December 25, 2020
  4. Bart Yee said:
    The Law of Large Numbers always suggested that once a major company achieved a huge market cap, it had peaked and could not grow further – because the same old same old would be overtaken and out competed by smaller, more nimble companies. (Nokia, Blackberry, Motorola) Or they would deviate from core competencies and implode under debt or eventual mismanagement (GE, ATT, Cable providers, Sears, Enron) to be broken up and buried.

    3
    December 25, 2020
    • Bart Yee said:
      Apple has gained its market cap by distilled discipline in products, shrewd manufacturing and quality control, betting on itself and its focus on UX, value and long term user engagement. It has eventually and finally shaken off Wall Street’s pigeon hole perception of “just a hardware company” with a wide ranging diversified and sticky ecosystem – because it is well thought out and works for the most part.

      Apple has always had a long term mindset, always working on the Next Thing, always has a “one more thing” coming.

      4
      December 25, 2020

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