I briefly talked yesterday about Tesla’s market cap and how it was absurdly priced and honestly felt like gambling to me. However, APPL is somewhat overlooked as well and I wanted to hear your guys’ thoughts on it!
Apple’s Market Cap as of right now is 2.3 Trillion (Source). On August 20, it was 2 Trillion. It has added 300 billion in about 10 days – without having added any products what soever (primarily due to the stock split).
In April of this year, it was 1.1 Trillion or so. It has since doubled since that time, so much so that it is the size of the GDP of France (www.statista.com/statistics/685925/gdp-of-european-countries/)
Now, I am all for Apple devices and services. They make some of the best products ever. They have crazy high margins and once a consumer buys an Apple device, he has to buy other ones due to the seamless integration it provides (biggest selling point). It is now getting in more markets such as India with its’ new iPhone SE 2, but I am somewhat skeptical on its’ valuation.
I feel like people are buying AAPL due to its security – it has always gone up, so it will always go up – and therefore, it’s safe to park their money there. Some are even likening it to Treasury Bonds – that it’s better to put your money in AAPL stock because it’s safe and because it’s so big, it won’t fail.
I wanted to know if AAPL is overvalued/overpriced or not? I know the first 5G iPhone is coming out and it will have an impact but still, are people putting too much blind trust/faith in AAPL?
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.