Would you buy Apple stock, even now, at its sky-high value?
You know, you could probably single out any point on Apple’s stock chart over the past three years and say, “Incredible, but only a sucker would buy now.”
Surely, if buying high is forbidden in Investing 101, then what are we to make of Apple, whose stock value has been considered bloated nearly every day since 2009?
Each time, plenty say its worth could never get higher, and even Monday all the stories suggested that Apple, which closed at a nauseating all-time peak of $552 per share, was on fire but couldn’t possibly still grow.
At that point, Apple had been named the most valuable company ever. Of course, a day later at Tuesday’s close, the iPhone maker’s stock was up $16 to $568.10.
Indeed, there is nothing that can apparently stop Apple’s stock value from ascending, but its continued rise flies right in the face of several investing fundamentals.
*Bing: How to tell when a stock will gain
For instance, let’s say you were considering buying into Apple on Oct. 19, 2009, when each share sold for $203.94. Such a price was a company high for the California tech giant, but remarkably by Apr. 19, 2010, it was up to $270.83.
Or what about even on Sept. 12, 2011, when Apple broke the $400 mark per share for the first time? That’s insanely high, right?
Had you bought in then, you’d have made a 42 per cent return by Tuesday’s close. When will it stop?
I’m a man of the law of averages, so it runs contrary to what I believe that Apple can keep rising, especially inside the world of consumer tech, which Kevin O’Leary loves to report is dictated by the preference of 16-year-old girls.
Though a quick rundown of what Apple’s got on the horizon – a future cornering of the corporate market, the iPad 3’s release this week and the inevitable iPhone 5 debut later in 2012 – signals room for plenty of growth. Maybe not 2009-2012-level growth, but the landmarks are there to suggest increased value for the tech company that was worth only $11 per share as recently as 2004.
Would you buy Apple, one of the most coveted stocks there is, even at its current sky-high valuation?
By Jason Buckland, MSN Money
Posted by: rogers dad | Mar 14, 2022 10:48:54 AM
whether it goes higher is pointless, one has to look at the risk factor, since its run up so much so fast the possibility of it dropping is much better then it going higher. I dont like apple as its riding on technology that has been around for a while now, eventually the feet will give out.
Posted by: wtfdik | Mar 15, 2022 3:13:51 AM
If a stock were to go from $4 to $6, it wouldn't get as much attention as a stock going from 400 to 600. But it is the same thing. Also, Chipotle Mexican Grill (CMG) has outperformed Apple since 2006 and trades at 60 P/E ... that's selling burritos and guacamole. Look at what all Apple is selling, where all, and to who all. Finally, look at the numbers and make a industry comparison. Apple was undervalued before (yes, I have been saying it for 2 years to anyone who would listen). Apple is undervalued today.
Posted by: Dave | Mar 16, 2022 10:47:24 AM
Would I buy Apple Stock at this level? No. Apple has been the underdog for years and has gotten support from every quarter to stand up against the big bad Microsoft. They are now big enough to attract the attention of the US & EU regulators.
Good luck in maintaining those earning ratio's in the years going forward.
Posted by: fishman | Mar 18, 2022 12:18:27 PM