Up Up and Away!
Apple turned in another stellar quarter and its stock price shot back over $600 a share. The stock price has been rocketing all year. From an already lofty $400 a share it has zoomed with little hesitation to over $630. Then leading up to the quarterly announcement doubt set in, sending the price tumbling to below $560.
$1,000 a Share?
In the aftermarket, as soon as the figures were announced, Apple was back over $600 and has settled in at that level.
There is no doubt that Apple is making a fortune. UIt is also buying its stock back and will be paying dividends, but there is a huge issue that the market just doesn't want to factor in.
Apple is a giant on the back of mega hits, just as Pixar, was a film giant on the back of cartoon equivalents of the ipod/iphone/ipad. One "John Carter" style misstep for Apple would see the price cave in. With such a misstep Apple would still be making a fortune, would still have amazing products, would still be a great company -- it just wouldn't be $600 a share. As the old stock market saying goes, trees don't grow to the sky. However the believers see $1,000 a share and a trillion dollar market cap ahead. Hey, why not? That's how stock market bubbles work! A bubble isn't a reflection of a company or its products, just the greed and enthusiasm of speculators.
Where do you think the Apple stock is headed? Tell us on Twitter!
Clem Chambers is CEO of stocks and investment website ADVFN. For free real-time stock prices go to: www.advfn.com
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