Apple (AAPL) Grew By One Facebook Since Jobs' Death
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Price: $445.15 +0.68%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
Revenue Growth %: +11.2%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
Revenue Growth %: +11.2%
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This author had an apple for breakfast to improve his health and keep doctors away. However, a more healthy alternative might be investing in Apple shares...seriously.
Though Apple (Nasdaq: AAPL) is at all-time highs -- $469.75 at last check -- there is plenty left in the tank. Here's an interesting factoid or two just to highlight what has gone on with Apple and what will probably go on with Apple.
First, market cap growth since the death of Steve Jobs last October. CNN points out that Apple's market cap has risen just about one Facebook (NYSE: FB)(Nasdaq: FB) since then. From a numbers perspective, Apple was at $372.50 with a market cap of $347 billion last October. Currently, the stock is up over 25 percent with a market cap of $437 billion, a $90 billion increase.
With Facebook claiming 845 million monthly users and Class B shares going for about $40 each on the secondary market, analysts have projected Facebook's value somewhere between $94 billion and $100 billion (though ambitious analysts have given a market cap closer to $200 billion somewhere in the near future).
Also, not to kick a dead horse, but overall valuation looks cheap. Forbes recently ran an article from their tech blogger detailing Facebook valuation and why Apple is still completely undervalued. Facebook, he noted, at $100 billion would have a trailing price-to-earnings (P/E) ratio of 100 times, or just 27 times tailing revenue. By comparison, Apple is currently going for 13 times trailing profits and just 3.4 times trailing revenue.
Oh, take out the $100 billion in cash and those numbers drop to 10 times profits and 2.6 times revenue.
Sure, there may be a sell off...most investors don't want to hang on to stock that is at $450 or above for fear of liquidity evaporation (if that's even a term...basically, less participants in the market due to the higher price of the shares). But, the same argument might have been made at $300, $350, and $400. No short squeeze is likely either, with just 11.5 million -- or 1.2 percent -- of outstanding common held short.
Others might argue that comparing Apple to Facebook is like comparing apples to, well, something like a car tire. Apple is more a tech and media company while Facebook is all virtual with no physical goods to speak of (except the tears of an unfollow). Facebook should be compared more with a Groupon (Nasdaq: GRPN) or LinkedIn (NYSE: LNKD).
That's a small way of looking at things. Take Google (Nasdaq: GOOG) for instance. It started as a search company and now has the most popular smartphone operating system in the world today with its Android platform. Facebook, with all its data aggregation, could easily pull the same move (and probably is) to take a place among the mobile device elite. Just some food for thought.
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Though Apple (Nasdaq: AAPL) is at all-time highs -- $469.75 at last check -- there is plenty left in the tank. Here's an interesting factoid or two just to highlight what has gone on with Apple and what will probably go on with Apple.
First, market cap growth since the death of Steve Jobs last October. CNN points out that Apple's market cap has risen just about one Facebook (NYSE: FB)(Nasdaq: FB) since then. From a numbers perspective, Apple was at $372.50 with a market cap of $347 billion last October. Currently, the stock is up over 25 percent with a market cap of $437 billion, a $90 billion increase.
With Facebook claiming 845 million monthly users and Class B shares going for about $40 each on the secondary market, analysts have projected Facebook's value somewhere between $94 billion and $100 billion (though ambitious analysts have given a market cap closer to $200 billion somewhere in the near future).
Also, not to kick a dead horse, but overall valuation looks cheap. Forbes recently ran an article from their tech blogger detailing Facebook valuation and why Apple is still completely undervalued. Facebook, he noted, at $100 billion would have a trailing price-to-earnings (P/E) ratio of 100 times, or just 27 times tailing revenue. By comparison, Apple is currently going for 13 times trailing profits and just 3.4 times trailing revenue.
Oh, take out the $100 billion in cash and those numbers drop to 10 times profits and 2.6 times revenue.
Sure, there may be a sell off...most investors don't want to hang on to stock that is at $450 or above for fear of liquidity evaporation (if that's even a term...basically, less participants in the market due to the higher price of the shares). But, the same argument might have been made at $300, $350, and $400. No short squeeze is likely either, with just 11.5 million -- or 1.2 percent -- of outstanding common held short.
Others might argue that comparing Apple to Facebook is like comparing apples to, well, something like a car tire. Apple is more a tech and media company while Facebook is all virtual with no physical goods to speak of (except the tears of an unfollow). Facebook should be compared more with a Groupon (Nasdaq: GRPN) or LinkedIn (NYSE: LNKD).
That's a small way of looking at things. Take Google (Nasdaq: GOOG) for instance. It started as a search company and now has the most popular smartphone operating system in the world today with its Android platform. Facebook, with all its data aggregation, could easily pull the same move (and probably is) to take a place among the mobile device elite. Just some food for thought.
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join healthsouk as provider
rahulsouk on Feb 29, 2012 04:23 AMMark as Spam | Reply to this comment
This is really interesting but Groupon only allows one off purchases like a coupon. I think companies like Healthsouk.com which allows for further negotiation of services after the initial appointment to be much better. I have used both models in my private practice and found that www.healthsouk.com was more effective (I got more repeat customers) and it was free to use for doctors. Looks like us doctors aren't going to all just get up and leave private practice altogether any more~!