now makes up 3.7% of the entire S&P 500. J.P. Morgan analyst Mark Moskowitz says that Apple is no longer a company, but is its own sector of the market. Looking at the stock this way, Apple would be the 8th largest sector in the U.S., ahead of materials and utilities. Ironically, thanks to Apple, the tech sector leads the way by making up 20.2% of the stateside market index.
Apple has $98 billion in cash and could buy any company it wants to. But the stock market works in cycles and stocks don't go straight up. Companies that in the past looked like it would rise forever eventually turned course and there will come a time when Apple's stock moves lower. But for now, the Cupertino based company is on an amazing roll that makes it the most valuable company in the S&P 500, worth more than Google and Microsoft combined and topping ExxonMobil by $60 billion.
Can the stock go higher? Back in January 2011, with the stock trading at a then all-time high of $329, not too many traders could imagine the company's market cap of $273 billion, which then put it $60 billion ahead of Microsoft, moving higher. As long as there is skepticism that Apple can go higher, the stock should continue to make new high. Once everyone is in agreement that there is no place for the stock to go but up, that is the time to sell.