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How do y’all mentally process that fact? Why does the stock market think the company is “worth” that? My rationalizations: Profits are ~$88B/yr. would take ~2
by ctdonath 6y ago
How do y’all mentally process that fact? Why does the stock market think the company is “worth” that?
My rationalizations:
Profits are ~$88B/yr. would take ~22 years to total $2T, sooner with growth. ...but shareholders don’t receive that whole profit, so why own?
Apple has room for growth, up to 2x in mobile and 5x in computers (assuming static market), making a cap of $8T look feasible.
Thoughts?
- mxschumacher 6y agoin addition to margins and growth, their cash position and the very low interest rates play a role, Apple just borrowed $5.5bn over 40 years for 2.55%: https://www.barrons.com/articles/apple-is-the-latest-to-tap-bond-markets-in-a-record-setting-week-51597344992 https://www.barrons.com/articles/apple-is-the-latest-to-tap-...
- paxys 6y agoThe only real reason to own a stock is so you can sell it to someone else for a higher price in the future.