With the stock market closed for Good Friday, it seems like a good time to share what analysts are saying about three tech stocks: Apple Inc. (Nasdaq: AAPL), Google (Nasdaq: GOOG), and Priceline. According to Wall Street, Reuters, and MSNBC, these three companies are on pace to reach $1,000 per share within the next two years.
Of the three, Priceline looks to me most like those dot-com companies that fueled the last tech bubble. At least Apple and Google make or license hardware and provide content and technology. (I have an admitted bias toward hardware, having covered manufacturing for about 20 years. But it is a bias I continue to re-evaluate.)
“[The $1,000 level] really shouldn’t matter, but people still remember the dot-com bubble,” said S&P Capital IQ analyst Scott Kessler. “The fact that we are seeing stocks rise to these levels may be a signal of that sentiment again.”
It should be noted that there are a number of other companies with stock prices that have risen above $1,000.
Those companies include class B shares of Warren Buffett’s Berkshire Hathaway, which once traded above $3,000 before the company opted for a 50-for-one stock split. It now trades around $80. Berkshire’s class A common shares, however, are now priced around $121,295 each.
Who do you think will hit the $1,000 mark next? Better yet, if you were going to invest your $1,000 in one stock, which one would it be?
Regarding Apple: I think it is the reaction of the street that prompts some of the tongue-in-cheek analysis: the company can do no wrong, even if it abuses its workers, can't get its products out on time and sues its strategic partners. Seriously, would any other company get away with this?
Regarding Priceline: Yeah, I was surprised it was in the running--it seems to me there are at least 2 or 3 similar models out there and I'm a little perplexed why it stands above the rest. It reminds me a lot of the dotcom bubble, and the companies that rose to the top back then (in certain market segments) don't exist any more.
There is no investment that can make you win forever. The risk involved is what pushes the growth of an investment. Those who can take the risk, reap the benefits when it comes to profitable investments.
There is certainly a limit to how much Apple can grow and keep its current profitability and success. The trick and the skill is to be able to reead the signs that indicate the slow down in its growth in advance so that you one can make a timely exit to avoid losses. Once you are out, you then look for another profitable business and other promising ventures to invest in.
Invertments need to be dynamic to ensure long term returns in my opinion.
@Cryptoman: I agree you. If I were to invest in a company it would surely be Apple. They have not run out of ideas currently and are doing well in catering to their market. But what concerns me is that will they be able to sustain this growth in the upcoming days? We have often seen companies growing exponentially for a certain time and then crashing.
For my investments sake I hope that they continue to grow in the future :)
So, Apple's stock price will climb to $1,000 this year and then to $3K in 2013 and $6K in 2014. That seems to be the trajectory and since the company's sales will continue to grow at 100 percent each year and profits 140 percent per year, the sky is indeed the limit. Apple is unlikely to trip, the competition will never catch up or get their acts together and there's an endless pool of money to invest in its stock.
Why don't we all take advantage of this sure-fire lottery. Let's all buy Apple shares, quit our jobs, kick back and retire to southern France to eat caviar?
Hint to answer: Not all of us believe the hype and even though we are so obviously wrong today, we just might be right!
I think Apple's star will continue to shine for at least a few more years. They have a very creative group of people who are coming up with very user-friendly and impressive products. I don't think Apple has run out of ideas to keep on leading the game in the market just yet. Apple products are very innovative and eye catching. Consumers are happy with what they are getting for their money and have confidence in Apple and they will again queue up for its new products in the months to come.
Therefore, I don't see any reason why one should not invest in Apple as the future still looks bright for it.
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