still1 Posted August 20, 2012 Share Posted August 20, 2012 Apple is now the most valuable company of all time, with the Cupertino-based company?s market cap reaching a high of $621 billion. The company?s stock is trading at $664.12 per share, and reached a record price of $664.74 per share in trading today.Microsoft previously set the record for a public company?s valuation at$618.9 billion in December of 1999. Apple?s shares have been trading higher on the rumors of an iPad mini in production and a more powerful version of Apple TV. And of course, there?s been a frenzy around the upcoming release of the iPhone 5. http://techcrunch.co...ny-of-all-time/ Link to comment Share on other sites More sharing options...
Boz Posted August 20, 2012 Share Posted August 20, 2012 If there was ever an overblown value of a company, it's with Apple. Their whole value boils down to 2 products. And as someone else pointed out about this article, the inflation is not taken into consideration..so Microsoft was in fact more valuable. 620 billion today and 620 billion in 1999 is certainly not the same. Raa, Shaun N., ahhell and 4 others 7 Share Link to comment Share on other sites More sharing options...
neufuse Veteran Posted August 20, 2012 Veteran Share Posted August 20, 2012 For a company that is basically relying on 3 key products, that have such a small market share across the world, this just doesn't seem right...... sure iPhones are popular, but they aren't as much as samsung, Mac's sure popular, but not anywhere close to market leader.... just smells of overvalued And as someone else pointed out about this article, the inflation is not taken into consideration..so Microsoft was in fact more valuable. 620 billion today and 620 billion in 1999 is certainly not the same. Adjusted for inflation MS should of been valued at $890 billion if that was today ahhell, Shaun N. and Shane Ekanayake 3 Share Link to comment Share on other sites More sharing options...
techbeck Posted August 20, 2012 Share Posted August 20, 2012 Impossible considering all the money they are losing to Samsung. I mean, because of Samsung, Apple is really suffering..... Link to comment Share on other sites More sharing options...
Roger H. Veteran Posted August 20, 2012 Veteran Share Posted August 20, 2012 And as someone else pointed out about this article, the inflation is not taken into consideration..so Microsoft was in fact more valuable. 620 billion today and 620 billion in 1999 is certainly not the same. If you've never said anything good before this is definitely on the list of smart ones, even if it wasn't yours originally :p That's the first thing I thought when I ready it on CNN.com. I don't think Apple is a bad company and I certainly believe they freaking know how to market the hell out of anything. I guess IMO, i think this is like the "dot com bubble" of 1999 where this is the "Apple bubble" of 2010-2012. Eventually they have to come to a peak and if nothing even drop down a bit. In any case, I so wished I had bought stock in 1998 or whenever my economics teacher told us about investing and stocks and all that back then. I may not have been super rich now but hell, even if I had $40,000 from 50 stocks or something i'd be happy. (50 stocks back then with all the splits and whatever they've done over the years so it would be more now than just 50). Link to comment Share on other sites More sharing options...
neufuse Veteran Posted August 20, 2012 Veteran Share Posted August 20, 2012 If you've never said anything good before this is definitely on the list of smart ones, even if it wasn't yours originally :p That's the first thing I thought when I ready it on CNN.com. I don't think Apple is a bad company and I certainly believe they freaking know how to market the hell out of anything. I guess IMO, i think this is like the "dot com bubble" of 1999 where this is the "Apple bubble" of 2010-2012. Eventually they have to come to a peak and if nothing even drop down a bit. In any case, I so wished I had bought stock in 1998 or whenever my economics teacher told us about investing and stocks and all that back then. I may not have been super rich now but hell, even if I had $40,000 from 50 stocks or something i'd be happy. (50 stocks back then with all the splits and whatever they've done over the years so it would be more now than just 50). Don't ever expect a news organization that is Apple biased give you correct facts... Strangely most of them are Apple biased now, Fox News, CNN, NBC News.... wonder who paid who off Link to comment Share on other sites More sharing options...
still1 Posted August 20, 2012 Author Share Posted August 20, 2012 Impossible considering all the money they are losing to Samsung. I mean, because of Samsung, Apple is really suffering..... Apple is getting real hit with Samsung Galaxy S3 now... couple of my friends got S3 and they were waiting for Iphone 5!! I am sure a lot have done this!!! Link to comment Share on other sites More sharing options...
threetonesun Posted August 20, 2012 Share Posted August 20, 2012 If there was ever an overblown value of a company, it's with Apple. Their whole value boils down to 2 products. And as someone else pointed out about this article, the inflation is not taken into consideration..so Microsoft was in fact more valuable. 620 billion today and 620 billion in 1999 is certainly not the same. Their value boils down to a) ridiculous popularity / global recognition b) repeatedly successful product lines c) piles of cash on hand to invest with and d) the ability to hire top talent now and into the future. I wouldn't say they're overvalued. If anything, Microsoft, today, is undervalued. szo and Shaun N. 2 Share Link to comment Share on other sites More sharing options...
SuperKid Posted August 20, 2012 Share Posted August 20, 2012 Well, this is what happens when you sell really good products at really overvalued prices. Link to comment Share on other sites More sharing options...
+LogicalApex MVC Posted August 20, 2012 MVC Share Posted August 20, 2012 This is nothing more than Tulip Mania. Investors aren't buying the underlying company on sound investment principals. Instead they are frantically rushing to buy into house in the sky mania. Link to comment Share on other sites More sharing options...
vcfan Posted August 20, 2012 Share Posted August 20, 2012 market cap doesnt actually tell you what the real value is. yes the stock price is high, maybe because of some excitement of some of their products, but you have to remember they only have a few products they are banking on,and these are electronic gadgets that people use to play games on, not some life dependant technology. one **** up and it could bring them back down to irrelevancy. one **** up and the market cap could drop to extremely low levels like they had years ago. and you also have to consider they make consumer products. if some other company came along and created this new mobile technology, apple would be dead overnight. whereas other companies like Microsoft,ibm,oracle,etc... make products that other businesses and governments rely on. these products will never go anywhere. these companies' value doesnt fluctuate like crazy like the value of a company like apple would. Link to comment Share on other sites More sharing options...
threetonesun Posted August 20, 2012 Share Posted August 20, 2012 This is nothing more than Tulip Mania. Investors aren't buying the underlying company on sound investment principals. Instead they are frantically rushing to buy into house in the sky mania. It's true, I planted a Steve Jobs in my yard last week, once he gets some branches on him, I'll be rich! One of the best supply chains and design teams in the industry, vertically integrated, sitting on piles of cash, and a major influence in every industry they've entered (audio, mobile phones, and probably soon TV). You can argue they're overvalued, but they're hardly tulips. market cap doesnt actually tell you what the real value is. yes the stock price is high, maybe because of some excitement of some of their products, but you have to remember they only have a few products they are banking on,and these are electronic gadgets that people use to play games on, not some life dependant technology. one **** up and it could bring them back down to irrelevancy. one **** up and the market cap could drop to extremely low levels like they had years ago. Who would you rather invest in, a life saving tech company with incredibly low profit margins thanks to research costs, regulations, and the fact that you can't price gouge on life saving tech, or Apple, with huge profits margins and huge demand for their products? Link to comment Share on other sites More sharing options...
vcfan Posted August 20, 2012 Share Posted August 20, 2012 Who would you rather invest in, a life saving tech company with incredibly low profit margins thanks to research costs, regulations, and the fact that you can't price gouge on life saving tech, or Apple, with huge profits margins and huge demand for their products? Sure they are having huge profit margins and huge demand now, but I still wouldn't invest in them. Im not a cheerleader,and I personally don't think they are worth as much as the share price says. And I also think its a high risk position to take. I could lose my money overnight. Link to comment Share on other sites More sharing options...
BajiRav Posted August 20, 2012 Share Posted August 20, 2012 I guess certainly a good news for those who own AAPL. ;) Link to comment Share on other sites More sharing options...
Mr. Gibs Posted August 20, 2012 Share Posted August 20, 2012 market cap doesnt actually tell you what the real value is. yes the stock price is high, maybe because of some excitement of some of their products, but you have to remember they only have a few products they are banking on,and these are electronic gadgets that people use to play games on, not some life dependant technology. one **** up and it could bring them back down to irrelevancy. one **** up and the market cap could drop to extremely low levels like they had years ago. Pretty much this. Tons of tech companies in the late 90s had massively overvalued stock too, look at Microsoft. Once the bubble popped the stock returned to the value it was supposed to be at. Hell Bill Gates for a short point of time had a networth of over $100 billion due to MS stock being overvalued. Same thing will happen to Apple too. Are they a profitable company, sure no one will argue that but their stock isn't worth $600 billion+. Link to comment Share on other sites More sharing options...
neufuse Veteran Posted August 20, 2012 Veteran Share Posted August 20, 2012 What scares me most about this price is places like my 401(k) investors that keep buying Apple stock up because its "so valuable"... yeah and when it crashes back to reasonable levels, now what?!... heck one of my funds is 35% funded by Apple alone..... I duno wtf they are thinking cash that fund out now at the high point and spread that money out Link to comment Share on other sites More sharing options...
Navan Posted August 20, 2012 Share Posted August 20, 2012 What's the face value of these shares? Link to comment Share on other sites More sharing options...
+LogicalApex MVC Posted August 20, 2012 MVC Share Posted August 20, 2012 I guess certainly a good news for those who own AAPL. ;) Only if they sell and if they purchased at a significantly lower price. Buying an inflated stock is not much different than playing hot potato. You just hope you're not the one left holding the bag at the end... Owners of AAPL are hoping they can find some sucker in the future willing to pay them more than they paid today (after all, if the stock is going to only go up then they wouldn't ever want to sell it). This is where my correlation to Tulip Mania comes in above. Apple is making a crap load of money, but by buying the stock today you're buying tomorrow's revenue not today's revenue (as the market has already priced today's revenue into the share price). So you're in effect hoping that Apple will continue to post staggering growth indefinitely. This isn't a realistic proposition so it doesn't make sense to buy into an inflated stock where everyone else is betting too... Crowd mentality takes over... Link to comment Share on other sites More sharing options...
BajiRav Posted August 20, 2012 Share Posted August 20, 2012 Only if they sell and if they purchased at a significantly lower price. Buying an inflated stock is not much different than playing hot potato. You just hope you're not the one left holding the bag at the end... Right, that's what I meant. I know a couple of people (in real life) who own AAPL. One of them bought when it was <100 and one who bought at 240 something. I guess lot of money if both decide to offload. Link to comment Share on other sites More sharing options...
still1 Posted August 20, 2012 Author Share Posted August 20, 2012 What scares me most about this price is places like my 401(k) investors that keep buying Apple stock up because its "so valuable"... yeah and when it crashes back to reasonable levels, now what?!... heck one of my funds is 35% funded by Apple alone..... I duno wtf they are thinking cash that fund out now at the high point and spread that money out for the exact same reason I wish the share come down slowly rather than a bubble if it was ever to tumble. that way at least there wont be a economy melt down all over again. Link to comment Share on other sites More sharing options...
Rippleman Posted August 20, 2012 Share Posted August 20, 2012 You also have to "predict" what products are going to be coming out and what effect that will have. If apple introduce 2 key products here in the next couple years, I would expect apple stick to rise to $800 a share. The 2 products would be Apple TV (a giant 30"+ ipad, and you know for a fact they are working on a set of "Google" glasses of their own. Based on traditional high prices for apple products you can know that that they will have some huge profits coming their way. I can't say I would buy apple stock because that would mean you are already rich and have no need to be richer, but if i was a millionaire and wanted to become a billionaire then i would buy. Link to comment Share on other sites More sharing options...
thealexweb Posted August 20, 2012 Share Posted August 20, 2012 I just read on the Telegraph's website that the revenue Apple generates from just the iPhone is greater than Microsoft's total revenue, what the hell happened? 0.o Link to comment Share on other sites More sharing options...
Arpit Posted August 20, 2012 Share Posted August 20, 2012 i'm a math/finance/business guy and i invest/trade stocks and options as a hobby. from apple's business perspective as well as their stock's valuation, i guess the above comments make me a contranian when i say that apple is far, far from being overvalued. if anything, it's undervalued at its current price. their stock will hit 750~800 next year (and yes i am an owner of AAPL) barring economic uncertainties. to each their own, though. Link to comment Share on other sites More sharing options...
peacemf Posted August 20, 2012 Share Posted August 20, 2012 well the same people thought facebook was worth billions but now its worth waaaaaay less than that. the reality is that its just doing well. Much like the economy was a few years ago, everything was great! problems were blinded by sexy women in short skirts slapping you with money.........and now that the moneys gone there isnt much left. Kodak was big once, and look at it now! Wonder what will happen to apple in 20 years time, microsoft will go down hill in 20 years since the guy who started it left! he built it! now a "CEO" runs it! Link to comment Share on other sites More sharing options...
123456789A Posted August 20, 2012 Share Posted August 20, 2012 What scares me most about this price is places like my 401(k) investors that keep buying Apple stock up because its "so valuable"... yeah and when it crashes back to reasonable levels, now what?!... heck one of my funds is 35% funded by Apple alone..... I duno wtf they are thinking cash that fund out now at the high point and spread that money out That's kind of scary. What fund is that? I checked all of mine and the most any of them hold in Apple (or any company for that matter) is 2%. Link to comment Share on other sites More sharing options...
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