Apple, which was $ 22 at the time of its initial public offering on the NASDAQ, is said to be worth 1,250 times more today. This is not entirely true. The problem with Apple stocks is that they have been provocative in recent months. Knowledgeable people are tired of warning investors that Apple's stake is overvalued by almost an order of magnitude and is about to collapse, and that the shares of the fruit company must be urgently disposed of. Providing more than convincing arguments, accompanied by charts and calculations – and the rate is growing and growing. As if Apple was selling air (not the MacBook Air or iPad Air, but emptiness, the hope of getting rich swiftly). Although it still cannot do without hopes and promises: iPhone 12 and Mac with Apple Silicon inside are still dreams and hopes. The predictions of skeptics all do not come true and do not come true, but the situation is still alarming.
Is Apple a Bubble?
Apple's defiant behavior in recent months is, oddly enough, not unique. There were precedents. Apple's best friend and foe, Microsoft, had a painfully similar experience in 2000. In the end, everything ended well, but at first the meteoric rise turned into 13 years of crises and problems. There were other similar cases, but Apple and Microsoft have so much in common that experts make an absolutely logical conclusion: Apple is coming to an end . This will not end well.
The grim prospects were best described in an article published in late June. Apple's quotes were more modest than they are now, but the expert was already worried. Exactly two months ago, on June 24, 2020, at the end of trading on the NASDAQ stock exchange, the company's share was worth $ 360.06.
Critical Overheating, Sell, Get Rid of Apple Stock!
This phrase sounds from everywhere today. The outlook has become even darker: on August 24, 2020, at the close of trading, Apple stock price was $ 503.43. After the opening of trading, the Apple stock price set another all-time high – $ 515.14 (at that moment Apple's market capitalization was $ 2.20 trillion, another record), then it fell sharply (to $ 495.74). The time has come to answer the question: how much would an Apple Computer stock purchased in December 1980 be worth today?
How much are Apple shares
At the time of the sale, the shares were offered at $ 22 per share. $ 22 1980 is $ 69.18 in 2020.
Прямо сейчас акции Apple переживают очередной "сплит один к четырем" , в результате которого количество акций увеличится в четыре раза (с 12,9 миллиардов до 50,4 штук), а цена акции уменьшится в четыре раза.
The current $ 503.43 would be $ 125.86 . But this is not an easy process (to be honest, everything is always done for a long time), and it will end only on August 31st. This is the fifth split in Apple history, with the previous four splits of one 1980 share equating to 56 shares of 2020. 56 shares at $ 503.43 is $ 28,192.08. The growth is 1282 times. On the morning of August 24, when the stock price was 515.14, this figure was even steeper: the stock price at that time was 1,311.27 times higher than on the morning of December 12 40 years ago.
Обладание одной акцией не сделало бы её владельца миллионером, но пакет из ста акций , которыми награждали некоторых сотрудников, стоил бы сегодня 2,82 миллиона . Или если бы вы купили 100 акций Apple в 1980 году.
Now there are four companies whose market capitalization exceeds a trillion dollars, as before. In first place is Apple, with a capitalization of $ 2.15 trillion. On the second Amazon, it has $ 1.66 trillion. In third place is Microsoft, with a capitalization of 1.62 trillion. Google (in the sense of Alphabet) is in fourth, its market is almost half that of Apple: $ 1.08 trillion. Together, the world's largest IT companies are worth $ 6.51 trillion . Simply space.
What will happen to Apple stock
As usual, the majority of experts expect a quick and inevitable collapse of Apple shares. Never before have their horror stories sounded so convincing and terrifying. Over the past 52 weeks (in other words, over the past year), Apple's market capitalization has grown two and a half times . Apple went public 40 years ago, but 60% of its market capitalization has been earned over the past year. Apple stock is 32x higher than forecasted for 2021, can you imagine? This is absurd. It is impossible and it will soon be over.
In the last month alone, the company's share price rose by $ 100, from 400 to 500. By 25%. Split, which ends on August 31, will only change the scale. The number of shares will quadruple, the price of a share will decrease fourfold. This is done to make stocks more accessible and attractive to investors. Experts draw a conclusion from this, the logic of which I do not understand: this is where Apple's takeoff will end, and the company will collapse. Affordable and attractive – are these disadvantages? We'll see soon.
But not all experts think the same way. Morgan Stanley is confident that Apple will soon hit the $ 520 mark (or $ 129 if it happens after the split). Wedbush Securities also changed its forecast towards further growth. Only one thing is clear: if Apple does not start to fulfill its promises in the coming months and does not present something more significant than a more or less significant upgrade to the 27-inch iMac , its stock price and capitalization cannot but peak.
Но это было бы лишь половиной беды. Если в какой-нибудь из более существенных новинок вскроются серьезные проблемы, если они не вызовут у публики ожидаемого интереса, если их цена, вид, ёмкость батарей или механическая прочность окажутся неприемлемыми – быть беде .