Record breaking Apple Price target now at $500!!!!

[ASusilovic]

Quote from dtrader98:

P/E ttm is only 20.
Forward est at 12.
It's not like you're comparing tech boom days... amzn to 400 with a negative to infinite P/E.

From a purely fundamental perspective, I don't see the numbers as being that far out of the ballpark, or what am I missing here?

It´s called "competition".

 

[jd7419]

For all you aapl traders Erin Burnett is going to have Julian Robertson commenting on aapl. The stock should move at least 5-10 dollars very qucikly on this news. Googling Robertson and aapl I see he has owned it for awhile, doubt he will say to buy it on the interview but who knows?

 

[Ghost of Cutten]

Quote from S2007S:

Bidu is at $1000, they split their stock a few months ago. Thats another bubblicious stock. I have never seen bubbles come and go so fast in this economy, especially after such a credit crisis.

BIDU is at 92 times earnings, Apple is at under 20 times. How are they even comparable? A <20 PE is not a bubble, sorry.

 

[Ghost of Cutten]

Quote from JJacksET4:

Sorry, but IMO for AAPL to hit $500, the market cap would simply be too much to hold it - PE would be pushing 40+ without a huge increase in earnings.

Look at XOM - their market cap is 330 Billion but PE is 12ish.

People say why not AAPL at $500 with BIDU, PCLN, AZO, etc. but their markets caps are all much, much lower, meaning there are less shares for sale.

I also think IPad sales might disappoint somewhat, just because some people are so bullish on it. Not saying it won't sell millions, but if it misses 45 million for '11 or whatever, look out!

Also, at some point, someone somewhere is going to sell their Apple shares to make a down payment on a house.

JJacksET4

But $500 billion is a drop in the ocean in terms of world investment capital.

And where did you get the 40 PE number from? Apple is at 20.7 PE and that is not including their cash horde, if you strip that out then they are at <20 PE. For them to get to 40 PE the stock would need to go to around 650 and earnings stay flat. Yet earnings are growing rapidly. Apple could get to 1000 just by earnings doubling in the next 4-5 years and the PE going to 30, hardly an outrageous multiple for a growth stock in a bull market.

Apple has sold at high PEs before e.g. at the 2007/08 highs it was at 40 PE, in 2006 it reached 44 PE. Stuff like AMZN is at huge PEs, AAPL is dirt cheap in comparison.