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“Apple” a trillion: Will Apple first ever public company with a market capitalization of $ 1 trillion
Last week, Apple’s capitalization reached a new historic high of $ 727 billion. However, some shareholders of the company said that its real value is more than $ 1 trillion, which means that the market still underestimates the potential brainchild of Steve Jobs. Whether such claims are true?
In the first half of February, Apple’s market value exceeds the GDP of Switzerland, breaking the mark of $ 700 billion, said by Financial One . In this situation, one of the ten largest shareholders of Apple, offensive activist investor Carl Aykann, claimed that the company’s shares should trade at $ 216 per share. Such an estimate is equivalent to a market capitalization of $ 1.26 trillion.
On Wednesday, February 11, Aykann in published via Twitter open letter suggested that investors underestimate Apple. Company’s share price should adequately reflect its rapid growth, and not bargain with “irrational” discount, wrote an investor. According to him, the level of $ 216 per share adequately reflects the current value of the technology giant. Aykann himself and signed the letter his son Brett Aykann and colleague David Schechter, consider that in 2015, Apple needs to earn $ 9.70 per share. This is significantly more than the average estimates of analysts surveyed by research firm FactSet – they agreed on a profit of $ 8.49 a paper.
“Now Apple needs to sell products and services by $ 200 billion, just to stay on the same level as last year – tried to clarify the situation with the alleged” discount “Forbes columnist Chuck Jones. – Therefore, the growth shares of 5% means that sales increased by $ 10 billion. A growth of 10% – to $ 20 billion, and so on. To continue its investors bought the paper, the company will provide up to $ 300 billion in revenue over the coming years. ”
After the financial results of Apple in the last quarter of 2014 exceeded the expectations of analysts on Wall Street raised the price target on its shares for the current year. On Friday, the median estimate was $ 134 per share or 6% higher than the previous day, but it was still very far from expectations Aykanna. Experts interviewed by Reuters, argued that the capitalization of Apple’s $ 1 trillion – just a matter of time, but it is too early to speak of such amount. So, senior investment manager at Solaris Group in New York, Tim Griscom notes that profits and the value of shares of Apple in the coming years will grow only slightly more active than the other companies of the S & P 500.
However, it is still possible to trigger a more rapid growth of quotations Apple may serve as past performance CEO Tim Cook in the IT-Goldman Sachs conference in San Francisco. In his speech, he announced the creation of a single platform that integrates a variety of services Apple – from payments to health. After the speech, an analyst at UBS Maylunovich Stephen raised his price target on Apple shares from $ 130 to $ 150, which also corresponds to the capitalization in excess of $ 1 trillion. «Apple as a manufacturer of” devices “worth $ 700 billion, but Apple as a manufacturer of platforms could cost $ 1 trillion,” – said Maylunovich.
For comparison, in 2012 only 15 countries in the world have a GDP the size of a trillion dollars or more.
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