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Two days after AAPL hits highest market cap ever, billionaire investor Carl Icahn values it at $1.3 trillion
Two days after AppleÂ set a new record for the highest market capitalization of any company, valuing it at more than $700B, billionaire investor Carl Icahn has suggested the true value of the company is close to double this, at $1.3T.
Icahn, who is one of the company’s ten biggest shareholders with stock worth around $6.5B, says that a realistic valuation of the company would be 20 times its earnings per share. Factoring in Apple’s cash reserves of $178B, that would give a share price of $216âfor a total company value of $1.3T.
Icahn notes that while he has previously been criticized for over-optimistic valuations of AAPL, 31 analysts have “dramatically increased” their earnings-per-share estimates in the past fortnight.
We have gained further confidence in our thesis, increasing the forecasted EPS for FY 2015 in our model from $9.60 to $9.70, and now believe the market should value Apple at $216 per share.Â This is why we continue to own approximately 53 million shares worth $6.5 billion, and why we have not sold a single share.
Icahn has consistently urged Apple’s board to increase the pace of its stock buyback program, his last call coming at a time when the shares were trading at $100. At the time of writing, shares were trading at $124.88. Apple recently set another world record, announcing the highest ever quarterly profit of any company.
Filed under: AAPL Company Tagged: AAPL, Apple financials, Apple Inc, Carl Icahn, earnings, Earnings per share, Market capitalization, Share price
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Apple’s stock soared the day after the company reported its record breaking quarterÂ with over $74 billion in revenue and more than 74 million iPhones sold, and now Apple’s stock has reached a new all-time high during trading. The company briefly touched on $120/share during trading this morningÂ and is on track to break its previous record closing high soon.set its previous record highÂ of $119.75Â in late NovemberÂ after the announcements of the iPhone 6 and iPhone 6 Plus in September alongside the reveal of the Apple Watch; the company also releasedÂ new iPads in October. Apple’s current highest closing price measures in at $119, just under its trading high reachedÂ today.
Apple CEO Tim Cook spoke earlier this week during the company’s quarterly conference call on the company’s record iPhone sales while adding thatÂ the company is optimistic about continued growth in the future. The Apple CEO also offered a more specific timetable for the release of the Apple Watch, specifying that the Watch development puts it on track to be released in April. Previously the company only promised ‘early 2015′, which Cook said to Apple includes the first four months of the year.
Filed under: AAPL Company Tagged: AAPL, earnings, iPhone 6, iphone 6 plus, market, quarter, record quarter, Revenue, sales, stock
Comments Off on AAPL shares reach new record high of $120 following Appleâs record Q1 earnings report
While few would expect theÂ record-breaking surge in iPhone sales generated by the larger-screened models to continue into subsequent quarters, Tim Cook argued in aÂ WSJ interviewÂ that the potential is there.
Apple Chief Executive Tim Cook, not surprisingly, argued that the demand is more than temporary. He said that fewer than 15% of recent iPhone buyers upgraded from other iPhones and that the majority switched from smartphones running Googleâs Android operating system.
âWe certainly believe there are legs to it,â said Mr. Cook of the iPhone sales surge.
Cook noted during the Q1 earnings call that the current iPhone lineup had experienced “the highest Android switcher rate in any of the last three launches.” With CIRP data suggesting that the US rate of switching from Android to iOS has remained broadly constant, that suggests the bulk of switchers have been outside the USâChina in particular …Â
Not even Cook would suggest that a company of Apple’s size could enjoy a 30% jump in year-on-year revenue two quarters running, but the company has issued guidance suggesting growth of between 14% and 20% this quarter.
Cook’s optimism stems from the fact that most iPhone owners have not yet upgraded. Add late upgraders to a continual stream of switchers, and you have, he believes, a recipe for continued strong growth. The Apple CEO also insisted that there remained upside potential for the iPad, despite a 22% drop in revenue.
Analysts are not so sure. While a Thomson Reuters poll of analysts found that the consensus view was for 22% revenue growth over the full financial year ending this September, they expect the bubble effect of the switch to larger displays to end by then, with growth dropping back to just 4% the following year.
Cook would argue that slowing growth in iPhone sales will be compensated for by other revenue streams, including the Apple Watchâlaunching in Aprilâand both domestic growthÂ and international expansionÂ forÂ Apple Pay. The App Store, too, is growingÂ at a rate that would see it become a significant contributor to Apple’s total earnings. One thing for sure: it’s going to be an interesting ride …
Filed under: AAPL Company, iOS Devices Tagged: AAPL, Android, Android (operating system), Android switchers, App Store, App Store (iOS), Apple Inc, Apple watch, china, CIRP, earnings, iOS, iPad, iPhone 6, iphone 6 plus, Revenue, switchers, Thomson Reuters, Tim Cook, upgrades
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Today during Appleâs Q1 earnings call with investors, CEO Tim Cook announced that the company sold its billionth iOSÂ device back in November.
Cook noted that the billionth device was a 64GB iPhone 6 Plus and that the company is keeping it at itsÂ headquarters in honor of the milestone.
The news comes as Apple beats expectations and reports record smartphone sales today with 74.4 million iPhone units sold during the holiday quarter.
Apple Marketing VP Phil Schiller also joined in on celebrating the milestone:
1 Billion iOS devices shipped!!—
Philip Schiller (@pschiller) January 27, 2015
Stay tuned to our live blog hereÂ for all the details from Apple’s earnings call with investors.
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Ahead of Appleâs fiscal Q1 2015 earnings report today, there were signs thatÂ Apple had enjoyed significant growth in China and a record number of smartphone sales in the region during the holidays. Today, we get some more insight into that growth, asÂ Apple reported a 157% increase from the previous quarter: revenue of $16.144 billion in Greater China compared to $6.292 billion in Q3.
Thatâs up 70% year over year from the $9.496 billion the company pulled in from the region in the holiday quarter last year.
Compare Appleâs 157% growth in China with an increase of around 55% for the Americas during the same period. The Americas remained Appleâs largest market at $30.566 billion for the quarter. China’s $16.144 billion was a very close third behind Europe at $17.2 billion during the quarter.
During the Q&A of the earnings call, Cook noted China will soon be at 20 retail stores with plans to double that number to 40 total by mid-2106. Online revenues in China were more than sum of the previous 5 years, according to Cook.
Leading up to todayâs earnings report, analysts reported Apple became the top smartphone vendor in China for the first time last quarter, and sold more iPhones in the country than it did in the US.
We expect Tim Cook and other Apple execs will make a point of noting growth in China during the company’s earnings call with investors later today. Stay tuned to our live blog here.
Filed under: AAPL Company Tagged: AAPL, Apple, china, earnings, growth, iPhone, Q1 2015, sales, year-over-year
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Comments Off on Apple Beats In Q1 2015 With $74.6B Revenue, $18B Profit And $3.06 EPS
Apple's results for the fiscal first quarter of 2015 areÂ easily the most hotly anticipated earnings report of the season. On the back of the company's iPhone 6 and iPhone 6 Plus launch in mid-September, the holiday quarter marks Apple's first full quarter of next-generation iPhone sales. With pent-up demand for iPhones with larger displays and a record holiday shopping season in 2014, expectations were sky-high ahead of Apple's earnings report on Tuesday evening.
Did Apple deliver?
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Fortune has done its usual analyst poll ahead of Apple announcing its Q1 earnings tomorrow, and Wall Street is expecting the company to significantly out-perform its earnings guidance of $63.5 to $66.5B.
The consensus among the analysts Fortune polled â 20 professionals and 15 amateurs â is that Appleâs total sales for fiscal Q1 2015 will come in at about $68.3 billion, up 21% year over year.
That would be $1.8B above the upper end of the expectations Apple set back in October …Â
Apple also said then that it expected its gross margin to come in between 37.5% and 38.5%, but it has been suggested that the popularity of the iPhone 6 Plus, along with customers upgrading to the middle storage tier after Apple boosted it to 64GB, may have boosted margins.
FortuneÂ suggests thatÂ anticipated high sales numbers of the iPhone 6 Plus will have played a major role in analyst expectations, with the all-time high in Mac sales forecast predicted by IDC also contributing to high expectations despite declining iPad sales.
Apple stock has climbed in recent days, currently sitting within 6% of its all-time high. Subsequent share movements are likely to reflect any difference between expectation and reality, as well as the company’s guidance for the following quarter.
As always, we’ll be bringing you all the numbers tomorrow.
Filed under: AAPL Company Tagged: AAPL, Apple Inc, earnings, Fortune (magazine), Gross margin, International Data Corporation, iPad, iPhone, Mac, Q1 2015 earnings, Wall Street
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