Apple Market Cap To Reach $1 Trillion

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Apple Market Cap To Reach $1 Trillion

According to some of the biggest investors of the country, the Apple market capitalization shares may go as high as $1 trillion. The gains in the shares of the iPhone maker could make this happen for the largest publicly traded company of the world. Steve Einhorn is a top executive at the $10 billion hedge fund called Omega Advisors Inc. belonging to Leah Cooperman and he said that that the shares of Apple Inc. are priced attractively and offer returns in double digits. Speaking at the Global Investment Outlook Summit in New York, Mr. Einhorn said that the company would eventually end up reaching the $1 trillion mark.

As per the latest data collected, the current market cap of the company is somewhere near $670 billion. Carl Icahn, the billionaire activist investor, said that the Cupertino, California-based firm is undervalued. Even last month, Mr. Icahn urged the American technology giant to purchase its shares from the market by utilizing the $133 billion cash pile it has. He further added that in the last few decades, Apple has emerged as one of the best companies. Thus, because the company is undervalued, it is a no-brainer that it should buy back its shares, especially when it has a huge cash pile.

Mr. Icahn said that its possible for the company to spend on new products and product investments as well as indulge in stock repurchases because it has about $135 billion in not just net cash, but marketable securities. A regulatory filing in the previous week showed that about 53 million shares of the company are owned by Carl Icahn as of the end of this year’s third quarter. Nonetheless, Mr. Icahn didn’t mention a fair value for the shares of the company. He said that this question was immensely difficult to answer.

There has been a 42% rise in the shares of the company in this year, which is primarily because of the strong sales of its flagship and iconic iPhone. In April of this year, the company decided to increase its share repurchase authorization from 60 million that was announced a year before to 90 billion. In June, the firm undertook a stock splitting, which was seven-for-one. Another analyst gave the opinion that it was indeed a possibility that the market capitalization of Apple Inc. would reach $1 trillion in the next year. The holiday shopping period was cited as one of the probable cause of this event because this is when there is a sales spike in the popular phones and tablet sales.

In other news of the company, Apple has introduced an update for its iOS 8, mobile operating system. This update is designed to enhance performance on some of the old devices of the company, which include the second generation iPad and the iPhone 4S. It will also increase stability and fix some bugs. Owners of older devices have complained that the iOS had slowed the performance of their devices so this update was launched to fix these problems.

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Sunny Akon

Sunny Akon is a Blogger and Content Writer, currently working at Burgeoning Technologies, a Web & IT Company. He currently lives in Lahore and can be followed on .

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