Apple's market value has exceeded one trillion, but Wall Street predicts it will continue to rise

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Apple's market value has exceeded one trillion, but Wall Street predicts it will continue to rise [Copy link]

Technology News Beijing time on the morning of August 4th, Apple's stock price rose slightly on Friday, but its market value is still very close to the 1 trillion US dollar mark it just broke a day ago. However, Wall Street analysts predict that the stock still has more room to rise. After becoming the first U.S. listed company with a market value of over 1 trillion U.S. dollars on Thursday, Apple rose 0.29% on Tuesday to close at 207.99 U.S. dollars. Its intraday low was 205.48 U.S. dollars and its highest was 208.74 U.S. dollars, fluctuating around the 1 trillion U.S. dollar market value mark of 207.0425 U.S. dollars. Daniel Morgan, portfolio manager at Synovus Trust in Atlanta, believes that Apple's calm stock price on Tuesday was just a continuation of the rise, not a sign of a decline. "It's like the horse crossing the finish line and saying, I'm exhausted," said Morgan, whose firm owns more than 200,000 shares of Apple. "The very strong earnings report on Tuesday and all the investors' attention to the $1 trillion have exhausted Apple's current trading power. This whole week has been inundated with Apple."

Even based on a market value of $1 trillion, Apple's stock price is still relatively cheap. Morgan said the stock is trading at less than 16 times earnings for the next 12 months, and he's more comfortable with 18 or 19 times. "I think this is a reasonable level, so I don't think there's any risk, although some people say it's already $1 trillion and we should put the brakes on. If it's Amazon or Netflix that's $1 trillion, we might take a long-term view," he said.

Netflix currently has a price-to-earnings ratio of 93.8 times for the next 12 months, while Amazon has a price-to-earnings ratio of 83.74 times.

"If Apple's price-to-earnings ratio reaches 20 times, that would be crazy," he said. He estimates that Apple's stock price could reach as high as $220 by the end of the year.

Amazon, Microsoft and Alphabet are all vying for the title of the second U.S. company to break the $1 trillion market value mark.

Most sell-side analysts seem to think that $1 trillion is just a milestone for Apple to continue to rise. The median price target they gave was $218.50, and the average was $215.46, according to data compiled by Thomson Reuters. The highest expectation comes from Monness Crespi Hardt analyst Biran White, who gave a target price of $275, corresponding to a market value of $1.3 trillion. He claims to be the first Wall Street analyst to give Apple a $1 trillion valuation.

Despite its record market value, White said: "Apple is one of the most undervalued stocks in the world today."

Trip Miller, managing partner at Gullane Capital, said Apple's stock price "should be higher." "Their revenue is highly dependent on one product, and I think that's why their valuation is discounted." He also owns Amazon shares.

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When will such a company appear in China?

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One-sixth of the market value of A-shares