Wall St eyes more gains from Apple, its cheapest $1 trillion stock

Share

Wall St eyes more gains from Apple, its cheapest $1 trillion stock

Apple is now up more than 20% this year.

Apple, the world's most valuable publicly traded company, may be seriously undervalued, said longtime tech investor Eric Jackson, founder and president at EMJ Capital.

A trillion dollars in market cap means the Cupertino company has both the cash and stock to buy anything it wants.

Behind Apple are Amazon, Google parent Alphabet, Microsoft and Facebook. Apple shares have been rising steadily over the past few days, and the company's the stock price briefly topped the $207.04 per share threshold just a short while ago.

With a closing price of $207.39 on Thursday, Apple became the first publicly listed US company to ever reach $1 trillion in market capitalization. But for right now, Tim Cook has been riding the wave that Steve Jobs handed him in 2011 to new heights.

Apple's recent strength, on a technical basis, can be tied to a successful defense of support at its 50-week SMA in April (see chart below).

For example, last year, he received $89 million worth of shares (560,000 shares at approximately $160 per share) because Apple shares' three-year appreciation exceeded that of two-thirds of the S&P 500 companies.

Taking a modest victory lap, Tim Cook is praising Apple employees for helping the company's value surpass $1 trillion, this week.

With Apple's fiscal year ending in less than two months (on September 30), it's safe to predict that Cook will get a decent equity payout, although it's hard to say exactly how much. "Financial returns are simply the result of Apple's innovation, putting our products and customers first, and always staying true to our values". It now accounts for 4 percent of the S&P 500.

Cook has put a focus on digital content and services, positioning Apple to make money from music, movies, apps, subscriptions and more - all sold to the vast "install base" of people using devices made by the company.

"Steve (Jobs) founded Apple on the belief that the power of human creativity can solve even the biggest challenges - and that the people who are insane enough to think they can change the world are the ones who do".

Share

Advertisement

© 2015 Leader Call. All Rights reserved.