Apple’s parabolic repricing continues.
The stock was up over $21 today ($45 since Friday’s close) on the back of a Morgan Stanley report, which included a price target of $960. The market is starting to reprice the stock to a valuation and multilple that we have long thought it deserves.
Trading this beast versus a buy-and-hold strategy has cost us, but, hey it’s all about risk management, no?
Apple’s market cap is now larger than the 2011 GDP of Poland, Belgium, Taiwan and could surpass Saudi Arabia with another $5 move tomorrow. Absolutely stunning!
The sheer size of Apple’s market cap now has asset allocation ramifications and may be one reason why volume has been so low in the rest of the market is so slow. The dollar volume in Apple today was more than 10x that of JP Morgan.
(click here if charts are not observable)
Comparing Market Cap & GDP is like comparing an Octopus with a Porpoise. The former happen to be measured in units of currency, the latter happen to live in the sea.
I agree with right paddock. Revenues is the more salient measure, but either way the comparison is useless.
I am interested to know what sort of multiple you think is appropriate for AAPL. At 12, it was cheap, at 17, I am not so sure (there are meaningful limits to growth when you are the size of AAPL0.
Thanks for post. We disagree with both of you. GDP comparisons with individual companies are useless and the post is just to illustrate the scale and size of Apple. Cheers.