Carl Icahn, an Activist Investor thinks that the Apple Inc., is worth more than whopping $1 Trillion. However, the Wall Street still thinks that the tech giant will take a few more years to get there.
With the booming stock market value of the tech giant this week, which goes beyond $700 million, Icahn said that the company’s share has to be trading at $218 respectively, an equivalent of the $1.26 trillion market capitalization.
The activist inventor’s opinion simply implies an increase of about 70% from the closing price of company’s stock. That is also on the top of the 65% surge in the Apple’s shares over the past year that dwarfed the 15% return of the S&P 500.
In the technology industry, the luck always come and go and it may happen overnight. Apple Inc., already shook on the edge of the financial ruin in the late 1990s and it was one to be blamed for the rapid death of “once” giant brands such as Blackberry and Nokia.
The tech giant now maintains a spot at the top of the tech market and it’s keeping up in terms of growing its market value hinges. Tim Cook, as the Chief Executive has the ability to keep up the flow of the game-changing consumer products, which was also launched by the deceased co-founder of the company, Steve Jobs.
On the other hand, Wall Street is still confident. Right after Apple compressed the Wall Street’s expectations for the trimestral earnings in January, having the record of all iPhones being sold, the analysts in the stock market has increased the 12 month stock price targets of the company. The average target price is now about $134, which is just about 6% higher than the price they got from Thursday and less than what the Activist Inventor, Icahn says it has to be.
As one of the company’s biggest shareholders, Icahn stated that the investors undervalue that company and that they are hoping that the board will increase the share buybacks. The stock of Apple Inc., has closed at about 1.26% higher at the $126.46 right on Thursday. Thus, it brings the market capitalization to a whopping $736.6 billion. According to the Solaris Group’s Chief Investment Officer, Tim Ghriskey, “The iPhone still has its own legs, but they need to keep on redefining and innovating.”
However, with all of the new gadgets coming up, the earnings of the tech giant, so as their share price will surely increase faster than those of the companies belonging to the S&P 500 over the next four years. This is what Ghriskey believes in.
Due to be released in April, the Apple Watch, so as the mobile payment system, Apple Pay may propel the gains of stock. However, it would surely take a little time for them to become a little serious contributors in the profit.
As what Patrick Becker of the Becker Capital Management, “Apple Pay seems to be an area that can easily touch a lot of consumers to move the needed, yet it will be a very slow process.