Apple's Earnings, Prospects for the $1,000 Share Price - ValueWalk Premium
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Apple's Earnings, Prospects for the $1,000 Share Price

Apple's Earnings, Prospects for the $1,000 Share Price

With first quarter earnings reports getting into full swing, one question on investors’ minds is whether or not the results will be able to extend this year’s bull market. Expectations are high.

But perhaps a bigger question and a topic of conversation in the current marketplace is whether Apple Inc. (NASDAQ:AAPL) will hit $1,000 per share or will it fall from the proverbial tree?

Apple Inc. (NASDAQ:AAPL) presence on the S&P 500 Index has quite an effect. It is is likely to be the index’s great contributor for earnings growth from the first quarter, according to ETF Daily News.  Without Apple’s presence in the S&P 500 Index, the projected earnings growth rate for the index would be -1.6%.

While impatiently waiting for first quarter earnings reports, 66 companies have already announced negative earnings per share guidance; this is a slight improvement over the fourth quarter’s 82 companies.

For Apple, the conversation has already started for its first quarter earnings report with its numbers and stocks price. Circle April 24 on your calendar: This is the day that Apple will report first quarter earnings.

Poised for a Price Increase

With Apple’s $583 billion market cap and continuously rising share price (hitting new highs on Monday), it moves the S&P 500 and the market. The company continues to produce new generations of its popular iPads, iPhones (can you say iPhone 5?), iTunes and oh yeah, they also make those great computers.

Add in Apple finally folding and agreeing to a pay a dividend and well, things are looking good for the company.

And if you don’t pay attention to all the numbers, then just ask yourself , Name one friend, family member or colleague that doesn’t own at least one Apple product? Or if they don’t, I bet they talk about purchasing one. This is one of the many ways the company grows.

But back to the initial question: How high will the stock go? Some analysts have forecast $1,000 per share.

Yes, $1,000 per share. While that may sound ridiculous, think of it as taking one for the team. With its growth, comes overall market growth. What’s good for Apple, is good for the market.

When Will See a $1,000 Price Tag?

Earlier this month, Topeka Capital Management set a $1001 target price on Apple within the next 12 months. This is supported by the company’s continued growth and domination; it could stay in this mode for the next 12 to 18 months on revenues of $160 billion and earnings per share at approximately $44.61.

Apple could even see a $1,000-plus price but investors may have to wait until 2014 or 2015 to see this.

One analyst, Gene Munster of Piper Jaffray, recent upped his Apple 12-month target price from $718 to $910. Should Apple hit this price, many analysts see the $1,000 price in 2014 with an approximate $1 trillion market capitalization–a first in history.

So next time the price of Apple seems ridiculously high, think of it as one of the S&P 500’s team members excelling and pulling the rest of his teammates with him.


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