Will Apple Shock Investors With A $1 Trillion Market Cap?
Helen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple (NASDAQ: AAPL) is one of the big wig technological giants in the contemporary digital world. Casting its net over an incredible and exceedingly panoptic spread, it extends a conglomerate of mobile communication and computer utility services. Personally, I believe that this apple invites more than one bite, so to speak. It currently extends one of the most attractive earnings per share in its niche- an amazing $35. Google (NASDAQ: GOOG) is the only competitor that sits on the far end of the table with its $29 earnings per share. Other competitors like Hewlett-Packard with $2.80 earnings per share watch from the sidelines. Apple’s current market cap of $582 also tells a story. In as much as I don’t advocate for numbers, these figures ralay a message of dominance and success. All said I am inclined to believe that numbers occasionally forge a misleading illusion. It would be in order to delve deeper and narrow down on the practical aspects that affect Apple’s future.
Recently, Apple’s futuristic intentions were brought to light. Its goals and prospects for subsequent years awed investors in the technological space. Sources reveal that it intends to break the ceiling and hit a record $1 trillion U.S dollars in market cap. Close competitors like Google will soon get cast off from competitor lists as Apple will step into its own exclusive league. As overambitious and impractical as this may sound, the possibilities cannot be overlooked.
Critics may label me a highly opinionated investor, but I have substantial reason to believe that Apple could indeed make a breakthrough. It is quite evident that its portfolio has swelled in an unprecedented fashion over the last fiscal year. The Apple that was in 2010 and 2011 is a mere fraction of the present day Apple. This is reflected in the current sales expectations for 2013. Analysts and experts speculate that ipads and Macs will sell an incredible $16 billion and $12 billion respectively; numbers that double sales figures in 2011 which settled at $6 billion in sales for both gadgets.
One question, however, remains unanswered. How will this news affect Apple stock holders? I believe that the news will strengthen the faith that the current market holds in Apple. An increased market cap will trigger a gold rush for Apple stock. From the basic economics that I know, increased demand inevitably sparks off an exponential increase in price. This means that share prices will hit the roof and adept investors will make a winning.
With regards to the avid ambition at Apple, I have strong convictions that competitors like Oracle will resort in last ditch attempts to salvage its dwindling client base. Apple has trampled on oracle’s java with the extensively used IOS platform. As if this is not enough, Google’s Android platform is also extinguishing the few remaining burning splints in java’s portfolio. I foresee a series of lawsuits and litigation drama from competitors like Oracle and Google in the near future.
The competition is simply too overwhelming for competitors to combat on a level battle field. Notwithstanding, I believe that court cases will give a clear insight on the sheer fear that plagues the very hearts of key competitors. This will in turn pass a message of triumph in the market.
Consequentially, confidence in Apple shares will magnify and share value will literally go through the ceiling.
The vertical landing and vertical take-off strategy that Apple embraces also gives me reason to believe that the technological titan is sailing in the boat of success. Towards the end of fiscal year 2011, Apple made an interesting acquisition. On November 24th 2011, Apple cast its shadow upon the patent listing of Nortel Network Corporations. After ending the year in style, it commenced 2012 with a new boost of energy as it then again made an acquisition on app search engine chomp in February. The former shows that it intends to diversify its portfolio and provide its market with improved networking capabilities. This move indicates that Apple is flexible and agile-lineaments that greatly fortify confidence levels in stock holders and prospective investors. Personally, I think the mere fact that Apple’s service package effortlessly meets all the contrasting needs in the market speaks volumes about the possibilities in its $1 trillion market cap target.
There has been some tough love between Samsung and Apple. These close allies are in a heated warfare behind the veils. Just recently, Samsung filed a lawsuit against Apple in South Korea which apparently happens to be Samsung’s back yard. Samsung claims that ipad2 and iphone4s purposely infringed its patents-3 to be precise. This is a mere capture from the unending soap opera between the two kingpins. There are actually 29 more cases in 9 other countries. The latest lawsuit came at the eve of a highly hyped ipad3 launch. I believe that Samsung’s purports to smother the hype and anticipation in the market through these farfetched lawsuits. Why did it file the lawsuit on the eve of an instrumental launch and not last year? This is yet another revelation of the malicious intent that trailing competitors have.
As a round up, I believe that Apple could indeed quench its swelling ambition and hit a record $1 trillion in market cap. Its share value is on a seemingly uphill trend, and competitors are exhibiting telltale signs of fear and retreat. Apple will soon and very soon for that matter shock investors.
The Motley Fool has no positions in the stocks mentioned above. QueenBC has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
