This just keeps getting higher and higher. Photo: Rob LeFebvre/Cult of Mac
Cupertino claimed the title of world’s most valuable company earlier this year, but according to some bullish Wall Street analysts, Apple could soon become the world’s first trillion-dollar company.
In a note to investors today, Cantor Fitzgerald analyst Brian White increased his target price for Apple shares to $180, putting his estimations well above other analysts’ expectations. Apple shares’ value will increase 40 percent over the next 12 months, according to White’s report.
While Apple naysayers have pointed to slumping iPad sales and the unclear future of the Apple Watch as signs that Apple is weakening, White gives three key reasons why Apple is poised to break the trillion-dollar barrier.
AAPL shares are down the first day on the Dow. Photo: Cult of Mac
Apple officially joined the Dow Jones Industrial average today, placing the world’s most valuable company among historic brands like Coca-Cola, Boeing and 3M. But Apple’s first day with the big boys isn’t getting off to a great start.
AAPL is back in a big way. After breaking an all-time high of $100.53, the price of Apple shares have continued to climb upward, and according the a WSJ report, hedge funds are piling onto the stock in droves.
Over the second quarter of 2014 henge funds have purchased $855 million in new positions in Apple, giving AAPL the second highest level of new buying activity among S&P 500 stocks.
We never thought they’d do it, but Apple is splitting their stock 7-to-1—and on our newest CultCast, we discuss that and other surprising (and non-boring) notes from their recent financial call. Plus, the best way to get the Apple stuff you want at lower prices; OS X betas now available to all; Apple Maps spots Nessie; Apple celebrates Earth Day with some great new marketing; why we’re crazy about Apple Campus 2; and forget Ashton, how about Leonardo DiCaprio as the next Steve Jobs?
LOL your way through each week’s best Apple stories! Stream or download new and past episodes of The CultCast now on your Mac or iDevice by subscribing on iTunes, or hit play below and let the audio adventure begin!
And thanks to our friends at New Relic for sponsoring this episode. Yes, New Relic, the all-in-one web application performance management tool that lets you see performance from the end user experience, through servers, and down to the line of application code. Put simply, New Relic helps the people who build modern software understand the stories their data is trying to tell them. If you’re ready to make your software run better, head over to http://newrelic.com/cultcast for a free 30 day trial.
Carl Icahn has backed off campaigning Apple to increase its stock buyback — citing the company’s recent repurchases, along with influential proxy adviser ISS’s call against his proposal.
In a letter directed to Apple shareholders, Icahn noted that he was ditching his non-binding proposal to get Apple to add a further $50 billion to its buyback plan — down from the original $150 billion he was initially requesting.
The reason in a nutshell: that Wells Fargo changed its rating for Apple from “outperform” to “market perform”. While this downgrade wasn’t accompanied by a change in valuation (which remains in the $536 to $581 range) the rating essentially shifts recommendation away from “buy” to “neutral” (which actually means “sell”).
Would Carl Icahn’s memoirs be titled How To Lose Friends And Influence People?
Activist investor Icahn has been proving divisive in recent months by spearheading a campaign to get Apple to carry out a $150 billion stock buyback (which he later dropped to “just” $50 billion).
Well, it’s difficult to be as outspoken as Icahn without certain other investors speaking out about you — and that’s exactly what Anne Simpson, head of corporate governance at the California Public Employees’ Retirement System, has done.