Apple (NASDAQ:APPL) Attains The Impossible
Apple (NASDAQ:APPL) has managed to impress again. More than five analysts have raised value targets on Apple (NASDAQ:APPL). The share price has reached its maximum peak since ever, to a remarkable $117.57, and went on to close at $116.31. This gives a market boast of $680 billion to the tech mammoth. This puts it way ahead of its rivals, such as Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Twitter (NYSE:TWTR) combined. In terms of figures in the market, Apple (NASDAQ:APPL) is a clear winner. This remarkable performance has triggered the question, whether this trend will continue for the company, or it is just heaving benefits from a temporary rise in the market.
There are several factors that make Apple (NASDAQ:APPL) a hit and a miss. But is it going to become a trillion-dollar baby is the big question.
The fact that Apple (NASDAQ:APPL) is more valuable than all of Russian stock put together can’t entirely be the tech company’s genius. The collapse of ruble, fall in the oil prices and an overall mismanagement of the Russian economy are contributing factors. However, it is quite a incredible achievement that once bankrupt Apple (NASDAQ:APPL) has bounced back to become more valuable than whole of Russian economy put together.
When Apple (NASDAQ:APPL) went through troubling times, Microsoft (NASDAQ:MSFT) jumped in to become the knight in shining armor and bailed the company out of trouble with $250 million. This amount seems meagre in comparison with the current $619 billion that the company was worth on the first day of millennium.
On average, price earning ratio sits on 19.27, according to the analysis conducted by S&P 500. All major brands, such as Apple (NASDAQ:APPL), Microsoft (NASDAQ:MSFT), and Qualcomm (NASDAQ:QCOM) sit under this average. The only tech company to exceed the margin is Google (NASDAQ:GOOGL) that sits at 29, which is still well below the mark Microsoft (NASDAQ:MSFT) hit in 1999. Facebook (NASDAQ:FB)’s 68 might be quite high, however the earnings peak in the next year will make it drop drastically, as projected by the analysts.
NASDAQ stock index has had monotonous trends as opposed to the fluctuating ones displayed by Dow and S&P. the stock that has more tech companies featuring is a 300 points away from where it found itself in the 2000 crash. However, things are more favorable at this point in time due to some heavies on its boards. The incredible Apple (NASDAQ:APPL) performance as well as the Microsoft (NASDAQ:MSFT) recovery has aided to quite a degree. In addition, new entrant Facebook (NASDAQ:FB) and Google (NASDAQ:GOOGL) have added prolific significance to the index. It has other heavies, such as Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC) and Cisco (NASDAQ:CSCO) that were part of the index back in 1999 crash as well. Apple (NASDAQ:APPL)’s presence on this index has helped both the counterparts in this collaboration.
Over the past couple of years, Apple (NASDAQ:APPL) has spent $70 billion in buying back its shares for a much lower price, which has resulted to achieve impressive market cap.