Re: Is Apple stock overvalued?
Apple has risen from ~ 350 at start of this year to 600, before falling to the currnet 585 level. Its market capitalization is 545 billion dollars. It comrises about 4% of the S&P 500 index. It is now a must own for most stock mutual funds. Some funds, which are not supposed to own stocks, or not supposed to own technology stocks also own it, since everyone else does.
Since ~ 1998, the following companies have had the largest market cap
GE (down from 55 to ~ 20)
No dividends have been considered above - thoug tech hardly paid any dividends till recently.
Other than Exxon, all the stocks in the last 14 years which have occupied the largest market cap crown ever so briefly have tumbled. Is Apple the next Tech goliath slated for a fall? Or is this time different? That is this is not longer the go-go 2000 Tech bubble type scenario?
Full discolsure - as stated earlier in other threads, I own a y-pad, and not an i-pad - so am not technically very savvy.
Since this thread opened AAPL has gone from 585 to 705 (split adjusted). So 20 pc5 gqin.Div yield now is 12 oct. Avg over the 4 yrs 1.25. 5 pct in 4 yrs. Total 25 pct return
Snp500 1400 to 1990. Or 32 pct return. And 2 0ct yld times 4. So 40 pct.
The mkt beat aaple in the last 4 years. You woukd not know that from aapl humongous mkt cap.