Gene Munster: AAPL could hit $1000 a share

John Brownlee ()

Gene Munster: AAPL could hit $1000 a shareMy inamorata likes, on occasion, to wistfully pine for an alternate reality in which her grade school predictions of Apple’s future success had been funded by a benign patriarch and made her a plutocrat. Instead, she got a cynical ‘C’ from her teacher for her “implausible” stock pick, and now blames this woman every day for her daily diet of bread crusts and dry Ramen.

The point is, it’s foolish to bet against Apple’s stock rising, but could analyst Gene Munster be taking it to far? He told Henry Blodget at The Business Insider that Apple stock could someday be worth $1,000 per share.

Munster’s reasoning is that Apple is well underway towards being the global smartphone leader and that Cupertino will be able to maintain its incredible growth rate. As the iPhone gets cheaper over time, there’s room for explosive growth. In the meantime, Apple seems ready to revisit its iPhone success with the forthcoming Tablet, which will expand Apple’s media profits in bold new directions.

Understandably, it seems like people took Munster’s comments as a reason to pick up Apple stock, as it closed at an all-time high yesterday of $215.04 per share. If you’ve got a few bucks rubbing together, you may as well get in: it’s just only going to go higher.

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About the author

John BrownleeJohn Brownlee is news editor here at Cult of Mac, and has also written about a lot of things for a lot of different places, including Wired, Playboy, Boing Boing, Popular Mechanics, Gizmodo, Kotaku, Lifehacker, AMC, Geek and the Consumerist. He lives in Cambridge with his charming inamorata and a tiny budgerigar punningly christened after Nabokov's most famous pervert. You can follow him here on Twitter.

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Posted in Apple, News |

  • iplante

    if only!!

  • 149TRL

    Yes, please.

  • http://ObamaPacman.com ObamaPacman

    Apple could hit over $9000 within 9001 years.

  • chano

    It can happen for a number of reasons.
    Apple makes the best Wintel PCs so market share will grow faster than otherwise.
    Apple makes the best pocketable computer/MID, the underestimated iPod Touch. this will be a fast growing device sector in the next decade. That’s why Quanta wants to make its own one for example.
    Apple makes the best phone without equal on its own merits and because of the unassailable ecosphere/system thingy. It will remain the leading smartphone and then migrate downwards to end the days of every dumbphone by creating a new cheap nano-class brightish phone.
    If Apple introduces a tablet, it will set the standard. If it is good enough and its IO is easy to use, it may slowly kill laptops.
    Apple is the world’s leading retailer, bar none.
    Since dropping the word ‘Computer’ from its name, it could in time turn its hand to a wide range of other areas it has so far ignored, the home security/energy management ideas it is playing with are but one possibility.
    So it could reach $1,000 per current share but not in that way. It will split its shares four or five times so that, in a decade, each current share becmes five shares worth $200 each, making the aggregate value of a current share $1,000 (or 5 x $200). Who knows? It can certainly reach $500 within 2 years if all its current products continue to please and sell in quantity.
    $215.04 reached yesterday was not the all-time high. That was $215.59 on 5th January.
    I liked your article on AAPL finances, but it was light on weight. You might usefully have looked further into the possible bases for a $1,000 valuation, as well as counter-argments, of which there are many. Jason Schwarz on Seeking Alpha, for one, certainly offers many justifications for at least $500 per share. There are many other informed Apple-admirers.

  • chano

    Rethink. On reflection, what comes through, is that rather than researching this assertion by Munster, you are merely reporting Blodget’s interview, parrot fashion. Your article adds nothing to what was originally reported.
    You are a good writer, You could have added value to this topic and you did not.

  • Mattzook

    But did he take into consideration that the Apple “tablet” might very well cannibalize iPhone sales?

  • Charli

    i agree that it is unlikely for the stock to ever actually hit $1000. And I’m not sure Munster really believes that. The stock will split etc before the shares ever go that high.

    But I think that Munster could be right in the sense that this is just the tip of a huge iceberg for Apple Tech, share and stock value. Investors don’t like vague statements so saying it could hit $1000 fits the bill with a number they can focus on. Even if it is something of a far-fetched number.

  • iPhoned

    AAPL $1,000 with 200 Billion in cash by 2010!

  • iPhoned

    Sorry, 2020