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New CEO Tim Cook (L) and former CEO Steve Jobs (R)
No Steve Jobs? No problem!

When Steve Jobs announced that he was resigning as CEO of Apple last month, many wondered how the market would respond to the news. With Tim Cook at the helm as the new CEO of Apple, investors need not worry -- in fact, Apple's stock is performing better than ever.

AAPL hit a high of $411.85 today and is now hovering around the $410 mark with just under an hour left before trading ends today. The stock is up 2.4 percent today while the overall market is down 1.28 percent. 

Apple Inc. now has a market cap of $380 billion compared to $355 billion for Exxon Mobile Corporation.



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This article is over a month old, voting and posting comments is disabled

By Tony Swash on 9/19/2011 6:41:23 PM , Rating: 0
quote:
Because everyone knows a company making iPads and phones is worth more than one producing oil and petro chemicals...

Just goes to show what a game of poker the stock market it is.

Can society function without smartphones and tablets... for real.

Try society without petrol at the pump..

And then seriously think about that market cap again.

What products a company makes is irrelevant to whether they are a good investment. People will need cars for the foreseeable future that doesn't make investing in a car company a good idea. What counts are profits, recent growth, the health of the balance sheet, liquidity and growth prospects. On all this Apple scores very highlyl, especially in the context of a troubled global economy.

Apple has doubled its turnover in both the last two years whilst running a very high rate of profit. Apple is also sitting on an ever growing mountain of cash, they will probably have a $100 billion in cash by the end of the year. All their products lines (except the iPod which is now a small part of their business) have been growing strongly in recent years. Apple are now the largest maker of PCs and the most profitable in the world and the second largest, HP, is about to bail from the market because it can't generate decent profits even with volume. Apple make the most popular smart phone handset and dominate the tablet market. Android hasn't dented the growth or profits of the iPhone and is irrelevant, so far, in the tablet market. In fact it seems there there is no tablet market just an iPad market. Apple is pushing very hard in the Chinese market and will generate huge growth there in the next couple of years. From an investors point of view there is no downside.

Hence the share price rise.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














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