How High Can Apple Go? $600 a Share?

26 Comments

[qi:109] Bolstered by the news of upcoming movie rentals via iTunes, hot selling Macbooks and iPod Touches, Apple just blasted past the $200 a share. So where does it go next?

“There’s so much growth to look forward to for the iPhone,” said Stephen Coleman, chief investment officer at St. Louis-based Daedalus Capital LLC, which owns about $7 million of Apple shares. He projects the stock will hit $600 in 18 months. (via Bloomberg)

Seems like a case of too much egg nog! Or Not! This has been a good year for Apple believers – the stock is up a whopping 138%. In comparison, Google, the other stock market darling is up a mere 54%. But you already knew that!

26 Comments

Dimitrios Matsoulis

When there is so much noise about shares going up, in my opinion there is something wrong and sooner or later we will have some kind of large correction. It would be great if Apple opened up its platform, but of course they know it is not easy and how much effort that needs. I agree with the opinion that MP3 players will soon be dead or have really low profit margins. Phones develop faster and are ideal for adding new features to keep consumers happy to fork out more money for the new models.
http://electronrun.wordpress.com/

robert

I just switched a good portion of my portfolio to Apple. I think it has much growth portential. The IPOD will be used for university instruction in tHE near future where students can watch classroom instruciton from their IPOD. The iphone will be with tmobile etc in a few years and the computers have caught on with the youth. When you replace your pc this year it will be a Mac if you have a kid in the house. I am wating for the market to open on Monday and I am moving more into Apple. I want to surf all day and not go to work! GO APPLE!!!!!!

Braden Kelley

If Apple goes to $600 in the next 12 months, it will be hype not fundamentals. Movie downloads won’t move the needle on Apple’s stock. TV and movie downloads are over-hyped and won’t deliver to the bottom line. The iPod is beginning to reach a saturation point, and because of the five year exclusive contract with AT&T the iPhone has limited market penetration potential. Increasing market share in laptops and desktops is another matter, and is where the true share price appreciation will come from.

Read more at:

http://www.business-strategy-innovation.com/2007/12/followup-future-of-broadcast-television.html

and

http://www.business-strategy-innovation.com/2007/06/iphone-followup-innovation-in-box.html

slackas

I dont honestly think that this shareprice is justified. Yes its a solid company. but look at the products, what next? and when?

saran

I don’t know why these people creating hype on Apple, whenever a company becomes successful in short time (ex: Google), its nature to fascinating about it and assuming the same success with other companies. Apple not equal to Google. Google got huge success in short time with some innovation (ex:viral marketing) and more a result of favorable economics, taking a market leadership position at the right time. Apple still doesn’t know about ‘partnership’. How they reach $600? This is possible only when more than 15% PC users switch to Apple. I guess, MS would rule the current PC market share at least for next 5 years, right now they are sleeping King Kong. Let’s see whether Apple can reach to $250. I would invest on companies who build products which connect rich clients with Cloud services, allow the user to move their data around clouds, among devices. They are the one could get success like Google.

thanks
Saran

John

As an Apple shareholder, I’d love nothing more than $600/share, but let’s be realistic. $600/share would give Apple the largest market cap in the U.S., $600 billion (or something close to it), surpassing ExxonMobile at $512 billion. And as others had noted, PE ratio of 50+.

Scionguy

$600 a share?! Where’d that come from?

And George: “Still plenty of room to grow and Apple is schooling multiple industries at once.”

Other than the portable music player, what industries is apple “schooling”? If you say the mobile phone industry me and 60+ million others will all throw our Windows Mobile handsets (that have more features and have existed for many years) at you.

Craig

Please people, don’t you learn anything about stocks? Don’t buy high! It’s nothing crazy like the internet stock boom but you could lose a good chunk of money. PE ratio of 50+. Their stock is becoming overpriced without anything over the horizon to increase sales. What is next? The last couple Apple ventures haven’t been stellar. Apple TV and the iPhone?

Believe me Apple has done wonders in the mp3 market. That’s their cash cow right now. With the all the competition out their there is less of a reason to purchase an ipod or even ipod touch. Archos, Samsung, IRiver and even Microsoft are producing some pretty good competition. Yes Wi-Fi enabled, Touch Screens, Pretier Players, bigger screens, and bigger drives are some features their competition boast.

Also Apple is smart enough to knowing their MP3 market is disappearing. To what? Just like PDAs the phone market. That why they had a vested interest in the iPhone.

The only saving grace I see is Apple going for a very low priced phone with a lot of the iPhone features creating a similar craze like those Motorola Razors. So in reality stock holders might have one more fun run but beware.

michaelportent

Apple is certainly always a trendy pick, and as long as the iPod/iPhone is still successful anything you have to do to get a share is worth it. To hit $600/share though, they really need to do two things: Figure out how to reduce costs on their lovely cinematic displays and make a middle of the range, budget-priced Mac Book that will fly off the shelves faster than Dell Inspirons.

Todd

$600 a share? Whoa, let’s not go nuts here. I love Apple products, but I see nothing in the real product pipeline or the rumor mill to back that up. In fact, won’t Android powered phones cut into iPhone sales?

Om Malik

@ All

I forgot to write this in the post – the Apple stock typically is on an upswing right through macworld. then it slides down. it has happened seven out of ten years in the past. sell into hype is what my wall street buddies say.

Om Malik

Mike B,

I second your thoughts. I think Apple’s popularity has also resulted in it becoming more problem prone.

Anyway i still think it is one of the better designed machines out there.

George

The idea that Macs are trouble free is a myth. But it is much easier to keep a Mac running. The Mac OS is much more straightforward and uses common phrases to describe what’s going on. And my iPhone is a delight, something I cannot say about any previous cellphone. Since investing in Apple 4 years ago, I’m up over 1000 percent. Think I’d bail out now? No way. Still plenty of room to grow and Apple is schooling multiple industries at once.

Curtis

Apple’s stock has had a banner year for sure, but it is currently trading with a P/E of 50. That’s not sustainable historically. If Apple hiccups unexpectedly, expect a strong pull back.

PS… good luck to shorts heading into the spring! ;-)

Mike B

The idea that macs are trouble free is a myth. I own both platforms, and I’ve had problems with both at about an equal rate. As a closed platform, Apple has a huge advantage over microsoft and yet they still generate their share of faulty hardware and software.

Rick

Sorry for the multiple comments, but let me drive this PC point home. Have you ever browsed the computer magazine shelves. What do you notice about all the Windows mags:
“How to fix…”,
“10 easy ways to tweak…”,
“Common Windows problems …”,
“Clean your Windows…”

Now look at the Mac mags:
“How to do cool things with your Mac…”

Get the picture?

Comments are closed.