Apple's stock market value adds up to 3.7% of the entire S&P 500
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The amazing thing about Apple's stock is that with the sensational rise it has had, the value of the company's shares 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.
source: TUAW
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8 Comments
1. Gawain posted on 25 Feb 2012, 23:42 2 0
3.7% of the S&P 500, not the entire stock market - a very big difference, and not an accurate headline at all. The market valuation of the entire stock market is measured in trillions of dollars. If you look at the JP Morgan statement (http://blogs.barrons.com/techtraderdaily/2012/02/24/apple-a-sector-unto-itself-says-jp-morgan/), it says, "At 3.7% of the S&P 500, AAPL carries a larger weight in the index than Basic Materials, Utilities, and Telecom Services..."
2. Lucas777 posted on 26 Feb 2012, 00:35 1 1
does it not say S&P 500? my bad if im reading it wrong but…
3. mercorp posted on 26 Feb 2012, 01:16 0 0
Only 4 generations of iphones.were you thinking of iphone5?
4. biophone posted on 26 Feb 2012, 02:30 1 0
iPhone
Iphone 3g
Iphone 3gs
iphone 4
Iphone 5
That is five generations. The numbers aren't generations. The iPhone 5 will be the 6th generation iPhone.
5. abish1234 posted on 26 Feb 2012, 03:09 3 1
i think this site should be renamed to iArena :D
7. ENIGMA posted on 26 Feb 2012, 11:14 0 0
what the hell in earth what is so really good about Apple
what so special everything is restricted and u all say its the best in the world even Sony products are way better than this listening to Sony earphone mp3 players they sound much better u can pin point every instrument playing but with apple it sounds dull its true
8. devang4u posted on 19 Apr 2012, 05:39 0 0
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