
Apple Inc. has just momentarily surpassed PetroChina Co. to become the second-biggest company in the world, by market value of course, all thanks to investors betting on growth prospects for the iPhone, Macintosh and iPad. Be reminded thought, that this is the ladder of ‘market value’, not annual gross revenue, which Apple currently stands at 197 according to CNN.
Apple climbed as high as $292.76 in intraday trading on the Nasdaq Stock Market, giving it a market value of $267.5 billion, the second-highest company behind Exxon Mobil Corp. By 4 p.m. New York time, Apple slipped to $288.92, putting the company’s value at $263.9 billion, less than PetroChina’s $265.5 billion valuation.
Looking back, Apple’s stock has more than tripled since January 2007 when they introduced the iPhone, which somewhat revolutionized the smart phone market. As of currently, the iPhone itself account for almost 30-percent of the company’s annual revenue. Another factor which leads to Apple’s ‘victory’ here would be the introduction of their iPad tablet device, which as of now has already outsell their successful nine yearlong lineup iPod.
“There’s no reason at all Apple can’t grow much, much bigger,” said Jane Snorek, an analyst with Minneapolis-based First American Funds, which has more than $100 billion under management, with Apple as its largest technology holding. Apple still has a small portion of the market for phones and computers, she said.
Gene Munster, an analyst at Piper Jaffray Cos. in Minneapolis, said that Apple will sell 21 million iPads next year, an increase from his earlier estimate of 14.5 million. The company is expanding distribution channels, selling more internationally and increasing sales to businesses. Apple’s stock could reach $390 a share, Munster said. Analysts surveyed by Bloomberg on average predict a share price of $342.81 in the next 12 months.
SOURCE via Bloomberg
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