Apple Reaches Milestone At $700 Billion Shares
Apple almost broke the market Tuesday when it reached literally all time high valuation of $710.7 billion. The iPhone maker became the first ever company in the history of the United States to hit that value according to S&P Capital IQ and S&P Dow Jones Indices.
On Jan 27, Apple posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. “It shouldn’t be surprising that record breaking market valuations follow record breaking earnings,” Walter Piecyk of BITG was quoted as saying by the USA Today.
Many analysts are now predicting that Apple’s stock will hit $130.70 per share in the next 18 months, possibly reaching a valuation of $761.3 billion in the near future. The shares rose 1.9 percent to $122.02 at market close in New York Tuesday.
“Right now, the stars are aligned for Apple. Not until the stock is at $150 do we even have to blink,” Alex Gauna from JMP Securities said.
“Given Apple’s powerful iPhone cycle, a big 4G ramp in China and the upcoming launch of Apple Watch in April, we believe there is still plenty to look forward to at Apple during this transformational cycle,” Cantor Fitzgerald analyst Brian White wrote in a note to investors obtained by Bloomberg.
The outstanding surge in Apple’s market value happened just as CEO Tim Cook spoke about building an $848 million, 1,300-acre solar farm in Monterey County, Calif. He was speaking at the Goldman Sachs Technology and Internet Conference in San Francisco. Cook said Apple has partnered with First Solar to ensure that the solar farm will bring significant energy cost savings for the company. He described the solar farms as “Apple’s most ambitious project ever.”
“We know at Apple that climate change is real. Our view is that the time for talk is past, and the time for action is now,” Cook said at 2015 Goldman Sachs Technology and Internet Conference.
Cook had also mentioned Apple’s distribution plans set for its April earnings call. The CEO said Apple will be returning cash back to shareholders.
“By and large, cash we don’t need, with some level of buffer, we want to give back. So we’re not hoarders,” Cook said.