Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

$600 Billion and Counting: Could Apple Be the First Company to Hit a $1 Trillion Market Cap?


When talking about Apple -- almost an anomaly to the broad market -- we need to start looking further out.

MINYANVILLE ORIGINAL For many investors, getting long Apple (AAPL) at this point is mentally challenging; with a $600 billion market cap, what can your return on capital realistically be at this juncture? The stock is far from being overbought both looking at either the standard deviation above its 50 day moving average or's proprietary countertrend indicator. First and foremost we are quantitative in our investment selection. Our proprietary systems went to a strong buy back when the stock was trading at $592.00. Even though we are first quantitative, we do look at other factors as well, such as fundamentals. The market does realize that the stock is fairly cheap both on a cash flow and earnings basis. But when we are talking about Apple -- which is almost an anomaly to the broad market -- we need to start looking further out. Below is a chart of Apple's correlation to the S&P relative to other tech names.

We all realize how competitive the smartphone and tablet market are, and truthfully as an Android (GOOG)-HTC phone user, I believe Apple has its work cut out for it with the iPhone 5.

So the real question is, can this $600 billion company pull ahead to $1 trillion in market cap with new disruptive technologies? Over the last year we have all heard the stories about a new Apple TV service/product that could revolutionize the way you access your programming. Producing a new TV in of itself is hardly disruptive. However, this week the Wall Street Journal has reported that the company is in talks with cable companies to form a partnership. Little details have been revealed, yet there is a lot of speculation about the possibilities of the company providing a set top box. We would be less inclined to buy the stock here based on this potential development. However, the iPhone 5 may be a game changer, as analysts believe this could be the largest product cycle yet for Apple's iPhone.

Click to enlarge

For more from, click here.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos