The Nasdaq has been flirting with busting past the 5000 mark for days now, but investors are blaming one stock on holding it back: AAPL.
Apple shares have ballooned to their highest value ever over the past month. After weeks of growth, the stock’s performance has been flattish the last few days, which is a big problem for Wall Street because Apple now accounts for 10% of the Nasdaq’s index value.
It’s hard to truly understand Apple’s astronomical size until you put things into context. With $178 billion in cash as of last quarter, you can start easily comparing the company to the gross domestic product (GDP) of large countries.
In fact, Apple would be the world’s 55th richest country right now, according to the latest data from World Bank.
Shares of Apple stock closed at an all-time high today of $124.88, bringing the company’s marketcap to a staggering 711.59 billion. Tim Cook couldn’t be happier with his company’s performance, but according to famous billionaire investor Carl Icahn, Apple’s stock should really be worth double.
In a letter posted to his Twitter followers, Carl Icahn said his firm has increased AAPL’s forecasted earnings per share in 2015 and believe the market should value Apple at $216. That’s not a price target. That’s what Ichan thinks they should be worth today.
According to Carl, the rest of the market still hasn’t caught on because they’re giving the company a significantly discounted multiple on its P/E ratio compared to the S&P 500.