According to analysts independent of investment banking consulting company Evercore ISI Amit Daryanani, include Apple’s stock price should exceed $ 2 trillion – for what it does not need any sudden moves — no new markets, nor anything supernatural. This all goes of course and now. Whatever claimed skeptics who confidently confronts the force majeure, and almost extracts the benefits for themselves. The forecast is serious enough, it’s not guesswork and not deciphering vague images inside a crystal ball – it is based on the research results, Evercore ISI and Amit Daryanani personally responsible for the accuracy of its reputation (and they have something to lose). Although you can catch them in inaccuracies, even if something goes wrong, it will not be easy.
From Evercore ISI prohibitively high ratings. In 2018 and 2019, in a difficult area of work she took first place in the world. If their predictions were not in most cases accurate, to achieve such success, she could not. But consider an unexpected force majeure factors, nobody can. And trouble a lot of time to do what was predicted in the forecast impossible: it should occur “within the next four years.” Until June 2024.
What earns Apple
Of all business directions of Apple in recent years, the most rapidly developing two: this “wearable electronics” (Wearables) and “services”. Income from “wearable electronics with “home electronics” and accessories in 2017 amounted to 12.8 billion dollars in 2018 is already 17.4 billion in 2019 – 24.5 billion. Accurate data on what portion of these revenues are brought to account Apple AirPods and Apple Watch, the company said, but it is clear that big.
Analysts Evercore ISI accurate data is likely to have. Otherwise they would not have to predict the size of the company’s revenue from wearable electronics in 2024 — according to them it will reach $ 60 billion. With services easier, in 2017, Apple has earned them 32.7 billion, in 2018 and in 2019 a 39.7 – 46.3 per. By 2024, the annual income from services is expected to grow to $ 100 billion. The higher the earnings, the better her reputation and higher quotations of its shares. As a rule. But there is something else.
One of the indicators necessarily Apple reported in the financial statements, the so – called “gross margin”. The difference between revenues and costs for them. Apple, on the average, the figure slightly more than 30%. Gross margin for services, an average of nearly 60%. It is not surprising that Apple pays so much attention to them. That is, by 2024, annual income is expected to grow by about $ 160 billion, even if the product company will not be a new bestseller. And if the current quarter trillion a year (annual Apple’s revenue in 2019 was 260.2 billion dollars) will not disappear due to unknown problems.
Not taken into account and factors which could affect the market capitalization of Apple positive impact: the triumphal announcement Apple Glasses or the Apple Car, for example.
How much is the Apple
As one of the justifications of the forecast Amit Daryanani led and market capitalization of Apple on the day of publication of the forecast (June 1 this year). Strange but true: no matter what, the stock Apple and its market capitalization (it’s just the product of the number of shares on their course) yesterday, not only did not fall but even increased. At the close of the exchange on 2 June, the stock of Apple reached 323,34 dollar, that one dollar closer to the historical maximum in 327,85 dollar than the day before.
This is the highest stock price of Apple from February 19 of this year. COVID-19 defeated? Alas, until the victory over coronavirus is still far. Apple’s market capitalization $ 1.4 trillion as Microsoft. Amazon, which some are predicting a market cap of 3 trillion, in response to the forecast Amita Daryanani, 1.23 trillion. From the Alphabet, that is, Google is – 0.97 trillion.
And events that would bring down the share prices, abound. Because of what happened last Monday in Minneapolis, and the resulting event of riots, Apple had to close at least half of the recently returned to work retail Apple Store in the country – some of whom managed to work only a few days. Five of the temporarily closed shops will need time to recover. Others are closed until Sunday, but will open for Monday – there is no certainty.
The unrest is not over. But outside the US Apple Store opened one after another. It has already opened this week Apple Store in Thailand and 8 stores in Japan will add four of the 11 Apple Store in Spain and the only Apple Store in Belgium.