You think people are going to buy Apple stock at $1K a share?
You think people are going to buy Apple stock at $1K a share?
"Greatness is not an act... but a habit.Greatness is not an act... but a habit." -Greg Jennings
Berkshire Hathaway closed on Friday at $102,272. per share. It makes AAPL look like the tinkertoy company it is. (I don't own single shares of it either, though I do invest in a couple of mutual funds that hold some of it).
The only single stock that I own are the shares of my employer that I received as part of my compensation.
Eventually, yes. Why wouldn't they? It's only a matter of time before it gets there. There price to earnings is way out of whack (in a good way) with a company of that size. When this corrects itself, the stock will be worth a lot of money. The scary thing is, with the forecasts analysts have laid out, I foresee the stock continuing to go up rapidly without much change in PE. Apple is expected to sell 150M iPhones and iPads in 2013. Assuming they sell the average iPhone for 600 (They sell for 650 to carriers today) and the average iPad for 600 (the base model is 500, but lots of people buy the upgraded models), that is 180 billion in revenue in a year. Assuming 25% margin on their business (which is in line with todays margin), they'll make 45 billion dollars on the iPhone/iPad business alone that year. That's not counting the app stores, iTunes stores, macs, accessories, etc, which are also huge, very profitable businesses.