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Apple's stock responds to news with big jump; stock makes new all-time high

Apple's stock responds to news with big jump; stock makes new all-time high
Apple has been all over the Dow Jones wire on Monday morning thanks to the release of some news that is moving the stock higher. First, it was announced that despite the lack of sell-outs at mortar and brick stores, Apple set a company record for sales over the weekend with the launch of the new Apple iPad. While no precise figure was released, the news would obviously be seen as bullish by investors.

What a ride!

What a ride!

Add to that word that Apple will start paying a quarterly dividend of $2.65 a share to stockholders starting with the July quarter, well you can imagine all of the short-covering and fresh buying of the equity going on. But there is even more. The Cupertino-based tech titan also announced it would buyback $10 billion worth of its outstanding stock. This accomplishes a few things. First, it reduces the number of shares outstanding which raised the company's earnings per share. That in turn lowers the company's P/E (Price to Earnings) ratio which is a metric used by fundamental stock investors to determine if a stock is cheap or dear. Apple's current P/E of 17 is cheap compared to historical values of market leaders, but is twice as high as the P/E of other companies in the same business. In case you were wondering, Google has a P/E of 21.

In 1929, RCA was the Apple of its day

In 1929, RCA was the Apple of its day

Earlier today, Apple hit a new all-time high of $606 a share. That makes the company the most valuable on earth. We still remember back in the Sculley days when the stock traded at $12. It has been quite a ride for Apple investors, but in the history of the stock market, no stock ever climbed forever. Back in 1929, RCA was the Apple of its day with an amazing product that helped make the world smaller, but those shares eventually collapsed under the weight of the crash. In 1986, it was Home Shopping Network (HSN) that had an amazing run that ended badly with the stock dropping from a triple digit price to $5. 

No equity has ever escaped the law of gravity and eventually, Apple's stock will start heading down. The million dollar question though, is how high will it get before that starts to happen?

source: YahooFinance

20 Comments
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posted on 19 Mar 2012, 13:41 26

1. JBz007 (Posts: 62; Member since: 02 Mar 2012)


It will stop at $666 and then drop all the way to hell.

posted on 19 Mar 2012, 13:55 5

4. PimpStrong (Posts: 310; Member since: 25 Jul 2011)


LMAO!

posted on 19 Mar 2012, 14:08 5

5. hepresearch (unregistered)


if I could thumb that up twice, I just might...

posted on 19 Mar 2012, 15:28 2

11. JBz007 (Posts: 62; Member since: 02 Mar 2012)


Lol I'm glad you liked it.

posted on 19 Mar 2012, 20:05

34. mannyfs (Posts: 63; Member since: 11 Feb 2011)


true, lol an so close to dec 2012 omg,, we r so dead. steves probably gonna resusitate

posted on 19 Mar 2012, 21:48

43. hepresearch (unregistered)


Yeah, if Zul returns, and iFans have to choose the form of our demise, then we won't be getting anything so benign and harmless as a giant Stay-Puffed marshmallow man...

posted on 19 Mar 2012, 13:51 8

2. hepresearch (unregistered)


According to iFans, when Google does it it's ironic, but when Apple does it it's iconic...

posted on 20 Mar 2012, 00:11 2

53. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)


actually according to android fans, whatever apple does is satan's touch while google is never wrong…. case in point comment numero uno

but i digress… apple is successful as a business… their stock will probably reach a peak high and then dip a little, eventually leveling out

posted on 20 Mar 2012, 12:39

55. jamrockjones (Posts: 345; Member since: 26 Oct 2011)


Apple certainly has set a new standard.... but here is the problem. They release a new noteworthy product twice a year, iPad and the iPhone, and when the handset becomes accessible it will just be a run of the mill handset. Initially, when the iPhone was only available on AT&T it was sought after by a whole lot of people, because it was exclusive and rare. However, since it's opened up to numerous carriers and probably all carriers one day it'll be like Blackberry or Palm. The beauty of Android and even Windows is that it's an open OS. Then you have more unique handsets to attract attention, different sized screens and sizes, and UI's. There is a phone to fit every type of personality, but with Apple, it's just one look.

posted on 20 Mar 2012, 20:21

56. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)


but the thing is its not really a problem… most people like the one option apple gives.. they dont need all the other options.. and if they do then there are alternatives like android and wp..

posted on 19 Mar 2012, 13:54 1

3. drtech (banned) (Posts: 135; Member since: 16 Mar 2012)


Well this will go nicely with the record iPad sales

posted on 19 Mar 2012, 14:09 4

6. davecann2 (Posts: 460; Member since: 15 Mar 2011)


mo-money - mo-haters

posted on 19 Mar 2012, 14:27 3

7. -box- (Posts: 3797; Member since: 04 Jan 2012)


all good things come to an end... or at least a reduced lifespan... look at the auto industry, RIM, Palm, Kodak, analog media manufacturers, the physical music media industry... nothing is forever, despite things that make it seem like a company is unstoppable. People change interests, technology keeps evolving, and companies fall by the wayside if/when they can't keep up

posted on 19 Mar 2012, 14:42 2

9. GuiltyBystander (Posts: 199; Member since: 05 Mar 2012)


I agree with you.

+1

When companies become greedy, it's the beginning of their downfall.

posted on 19 Mar 2012, 16:00

17. cellphonator (Posts: 298; Member since: 29 Oct 2011)


That's true, BUT a company has to evolve if it wants to survive and the names you mentioned did not. Everything comes to an end but there are companies out there that managed to stay in business for half century no problem. Keep up with times and you'll be ok.

posted on 19 Mar 2012, 14:42

8. cellphonator (Posts: 298; Member since: 29 Oct 2011)


Surprise!!!

posted on 19 Mar 2012, 14:58 1

10. networkdood (Posts: 6267; Member since: 31 Mar 2010)


Buy an iphone and contribute to the 'rich getting richer, while the poor get poorer theory...

posted on 19 Mar 2012, 15:45 4

15. cellphonator (Posts: 298; Member since: 29 Oct 2011)


And who would be the poor in this contest?

posted on 19 Mar 2012, 16:37

21. hepresearch (unregistered)


Eventually it will be the people who give all that money and credit to Apple... the real rich folks, like EU parliament members, Swiss bankers, Builderbergers, Russian mob bosses, Colombian cartel commanders, Qatari Mullahs, and the Rothschild family financiers, among others, buy Vertu Symbian phones, apparently.

=8-P

posted on 20 Mar 2012, 00:47

54. DIYguy (Posts: 190; Member since: 27 Feb 2011)


It'll crash.

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