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?
I am curious about how Apples stock is going to handle the lawsuit the DOJ is announcing today at noon about price fixing. I'm sure this is just the begining of things for Apple, wouldn't surprise me if they get hit like Microsoft constantly did.
Out of those 3 stocks I would have the least confidence in Priceline. With as emotionally driven as the stock market is, I can't understand why values that flucuate by the minute matter to such a large amount of the population. Everybody is so focused on these stock values that they overlook things like where the company is headed, the company's past, and how liquid is the company.
I think it depends on the products you are selling. Innovation is relative to the product line. If a firm launches an innovative feature or hardware it should take appriopriate measures to highlight that innovation to the customers.
As your example suggests, a firm cannot rely only on innovation to maintain sustainability. There are certain other factors that play an important role in maintaing market share.
Stock markets are always in fluxuating mood and hence there may be chances for both profit and loss. Since last year some corrections are happened, it’s difficult to predict about any more changes in near future. But any investment in equity for a long time (minimum 5 years) can help you to get a better yield.
@Wale. It's all relative when it comes to investments. Concepts such as 'early' and 'late' vary from investor to investor. It's a function of how much one is willing to lose in return for a future possibility of making higher gains. You can choose to wait even though you keep on losing a bit everyday but there is always a possibility that the downward trend will be reversed tomorrow.
If you are already in profit, it's easier to wait for longer. However, if the losses start eating away from the initial investment, a quick exit may start to look appealing. It is a tough call though I must admit...
Thanks Seydzunair. Keeping the sustainability heavily hinged on innovations they could conjure up that may draw consumers atttraction as well, investors. Take a look at RIM today, touch screen innovation caught up with its BB big time and now at back foot of consumer markets.
@Wale: I agree with you completely and that is why I said that I was concerned about Apple sustaining its growth in the upcoming years.
I have seen that over the years it becomes difficult for companies to grow as rapidly as they did before. At a later stage, it just becomes a game of sustainability. If a company is able to sustain is profits, keep its shareholders and consumers happy I believe it is doing a great job. And I would love to invest in such an enterprise.
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