What actually matters more to an investor, shares outstanding or confidence?
Apple is one of the most valuable stocks in the world after Steve Job's re-engineering and definition of smart phones. And it helps propelled the company to today's huge market cap.
While we can't say much about the future movement of its share price and market value, we can be sure that the stock upward trajectory is limited by its own doings vis a vis in terms of declining technological prowess and limited creativity, rather than stock buyback as suggested which I find this rather astonishing - the argument of market cap being limited due to stock buyback and shares outstanding. I would rather say that generally the market cap is dependable more on the confidence of the market and prevailing market conditions. If everything being equalled, cash buy only raises the stock price per share, initially. The eventual share price will adjust accordingly due to many factors including fundamentals, what the market perceives, etc
As we all know, the market cap regardless of its sbare outstanding will escalate if investors are confident and like what the company and managers are doing, not limited by its share outstanding asuggested.
Having said that, I still believee that Apple will still be valuable if it sticks to what it knows best - technological prowess complemented (not supplementary) by its marketing outreach. Mr Cook may be able to sell more iPhones merely with his gimmick of adding 1 more colour to existing inventory in the past. Surely, the customers or diehard fans will not bite again if he continues to do this withluthe special technological part- this time yellow, anyone? Btw I have sold my old iPhone for an android. In the same vein, some may buy a Huawei for its photographic prowess and that's eating a piece of Apple pie, albeit slowly beginning from the rest of the world, but I digress. And that's the reality of the market!
Until the market is confident of Apple returning to its former glory, I regretably see it as just one of market's former darlings in the likes of GM, Ford et al. perhaps living off its huge war chest achieved by its founders. Sad, but reality bites as one cannot continue to be a diehard fan without that special something and hence market cap of the company.
I wish Apple well as I still hold some of its share although like others I've given up possession of the once prized iPhone. Sorry, some may disagree but again the dynamic of market forces prevail. Just my view thank you
Comments
Apple is a valuable stock because it is a profitable company with a strong brand, a leadership position in the technology industry, and a commitment to innovation.
Apple is constantly innovating. Apple is known for its innovative products。
Apple has a strong brand that is recognized around the world.
i have a new addiction. it’s buying Apple stock for the rest of my life.
Apple is a leader in the technology industry.