Apples Real Stock Market Value

Discussion in 'General Trading Discussion' started by Rainman, Feb 15, 2015.

  1. Rainman

    Rainman Senior Investor

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    One of Apple's largest shareholders believes that Apple Inc is already worth over $1 trillion. Sure their smartphone has made them soar to great heights but isn't it too early to make such claims? But considering the fact that there's still some potential for growth, those interested in getting rich with Apple should buy stocks right now and in a few years as Apple's stock keeps rising one can make some decent cash . . . trading.
     
    Last edited: Feb 15, 2015
  2. queenbellevue

    queenbellevue Well-Known Member

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    I don't think they're worth 1 trillion either. In fact, I think there's still a while to go before they can even think about getting to that mark. However, that doesn't mean I don't think it'll continue to rise...I feel like Apple and Google are two of the best stocks currently.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Well, everyone is of course entitled to their own opinion but I think that all of this talk is pointless. The company's stock has the value the market decides for it, each and every business day. Any value other than the one on the stock quote is just some guy throwing his own opinion out there.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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  5. Dejik

    Dejik Active Member

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    There is a simple(ish) calculation for determining the market capitalisation of a company, and it has little to do with what shareholders say. Shareholders often talk up a stock if and when they get ready to exit their position. Personally I'm interested in what happens to Apple over the next decade as I think the tide might be starting to turn against it. Sure the new ****** smashed ALL sales records, but it also now accounts for more than 70% of apple's revenue, so in essence its become a phone maker. Now who thought Nokia and Blackberry would be where they are now.

    Additionally sales of computers are flat and sales of tablets heading south, so if they ever get into a situation where someone brings out a market changing phone (as apple did with the original ******) then they could be in for interesting times.

    With that cash pile though, they'd probably buy the said company!
     
  6. Peninha

    Peninha Senior Investor

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    Well, this really puts a smile on my face. A trillion? More billion less billion, I think it's not that far off.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I like to use calculations, projections, and financials to give me a rough idea of valuations.

    But calculations aren't anywhere near always accurate. Many factors can make a company overvalued or undervalued, and markets (especially in the short term at least) are not anywhere near 100% efficient anywhere near 100% of the time. Emotions can factor in, and I often like to use market overreactions to my advantage on both the long and short side. Of course you can theoretically lose an infinite amount of money on the short side with limited upside.

    And there are often surprises we're unaware of.

    And some industries and even entire sectors tend to reject the traditional paper "valuations". Amazon and Netflix are obvious examples.
     
  8. petesede

    petesede Guest

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    The value of a company is exactly equal to the value of the company... which is dictated by the stock price. If some investor thinks the stock is worth a lot more, then they should buy more shares. That is basically what investing is.

    But that said, the market cap of Apple isn´t that much lower than a trillion. I just checked and it is 750 billion.. which is getting close.. I am pretty sure there are a lot of investors who think it is worth a trillion dollars already, but until a majority of people think it, then it isn´t because the price will not move up that high. But to put it in perspective.. Apple is worth 750B now.. but it´s stock price has basically doubled every 2 years for the past 6 years... so even a year from now, based on it´s growth rate, it will be well over a trillion.

    And to add to the fun stuff. Not only is apple worth $750B, they actually have almost $200B in CASH.
     
  9. wander_n_wonder

    wander_n_wonder Guest

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    I think even when Apple is really making that much these days, it's still not safe to assume that the trend will be like that for years to come. I wouldn't put all of my eggs in one basket. I think stock market investing is still safer when you are investing in more diverse markets and you are considering various types of industries. That happened to me a few years ago when I've invested about 80% of my money to automobile industries and then it went into a recession and affected me greatly. It's still best if you explore as much options as you have as possible.
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    It goes without saying that you need to be well-diversified. I almost never have more than 5% of my money in any one stock for very long - and most of my positions are smaller. I just sold off a little Apple for that very reason a couple of days ago.
     

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