Apple Inc. is one of the world's most valuable company and it is worth over $670 billion. And if Apple's stock continues to climb, it could become the world's first 1 trillion dollars company.
Apple Inc.'s market cap is $185 billion greater than the combined market values in the Dow Jones Transportation Average, which is an index that comprises famous blue chips such as FedEx, UPS, Union Pacific and Delta. According to CNN Money, the 1 trillion dollars hope came after Apple beat rival Microsoft with $260 billion market value lead and also knocking out another big competitor, Google, with $300 billion lead.
According to renowned venture capitalist Carl Icahn, Apple's stock could be worth $203 per share. With the figure, it is almost 80 percent higher than its current price. And with that level, Apple's value could be more than 1 trillion dollars even though the company bought back as much stock needed to increase the price of share.
For years, the 1 trillion dollars mark has been the elusive goal of companies. But can Apple hit the mark? CNBC said during the dot-com explosion, it has promised Internet stocks for a 13-digit valuation.
Aside from famous investor Carl Icahn, Omega Advisors' Steve Einhorn also said Monday that Apple Inc. could hit the trillion dollars valuation. 9to5Mac reported business and financial specialists attending the Reuters Global Investment Outlook in New York have suggested that Apple could eventually be valued at a trillion dollars.
"Gains in shares of Apple Inc. could take the world's largest publicly traded company to a market capitalization of perhaps as high as $1 trillion," some of America's biggest investors said Monday.
On the contrary, BGC Partners' analyst Colin Gillis reported last month that Google might have a better chance of reaching the $1 trillion-mark in market value since focusing on services and software will prove to be more profitable. He also added that Microsoft is more likely to top a 13-digit valuation before Apple.
"Apple is a great company and it is sucking up all the profits in the smartphone market," Gillis said. "But this is a product that's ultimately a low-margin widget. What happens if Apple eventually has to sell iPhones at cost because of even more competition?"
Although there is still a massive gap to fill for Apple to reach its 1 trillion dollars potential, several investors and analysts determinedly believe that a 13-digit valuation is very possible as the company continues to release bigger and better devices each year.
And with Apple's stocks reaching triple digits, the sales and investments would certainly overtake the company's record earnings. Then its 1 trillion dollars valuation could certainly come true in not more than five years.
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