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The Race to $1,000 per Share

With the stock market closed for Good Friday, it seems like a good time to share what analysts are saying about three tech stocks: {complink 379|Apple Inc.}, {complink 2294|Google}, 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.)

Here's what one analyst told MSNBC about the race:

    “[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.”

Another footnote to the report is particularly interesting to those of us in the supply chain. One company that has already reached and exceeded the $1,000 barrier is Berkshire Hathaway. It owns the distributor TTI Inc., which closed its acquisition of Sager Electronics this week. TTI also owns {complink 12816|Mouser Electronics Inc.}

Says MSNBC:

    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?

19 comments on “The Race to $1,000 per Share

  1. Cryptoman
    April 6, 2012

    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.

     

  2. bolaji ojo
    April 7, 2012

    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!

  3. _hm
    April 7, 2012

    @Bolaji: Why do you exxagerate it to this extent? I have not seen any common person exxagerate to this extent. It is very good report from Barbara?

     

     

  4. _hm
    April 7, 2012

    @Bolaji: Why do you exxagerate it to this extent? I have not seen any common person exxagerate to this extent. It is very good report from Barbara?

     

     

  5. syedzunair
    April 8, 2012

    @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 🙂

  6. Wale Bakare
    April 8, 2012

    @Syedzunair, Apple has had its market torrid times in the past. Rise of its share price may not continue at this rate for ever.

  7. Cryptoman
    April 8, 2012

    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.

  8. Eldredge
    April 9, 2012

    @Barbara,

    I agree with your comment regarding Priceline, and I don't see the incentive for it's stock price to beat the other two to the $1K mark. I suspect Apple will be the first to get there.

  9. Barbara Jorgensen
    April 9, 2012

    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.

  10. syedzunair
    April 9, 2012

    @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. 

  11. Wale Bakare
    April 9, 2012

    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.

  12. Wale Bakare
    April 9, 2012

    Agreed Cryptoman, share both the risk and profits. Meanwhile, isnt it more precarious taking an earlier exit at this present time or later?

  13. Cryptoman
    April 9, 2012

    @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…

     

  14. Daniel
    April 10, 2012

    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.

  15. syedzunair
    April 10, 2012

    You are welcome Wale. 

    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. 

  16. Barbara Jorgensen
    April 10, 2012

    @Jacob: it scares me that the market is so prone to mood swings, though. Last I checked the Dow was down 200 points on some minor bad news. Yet Apple did OK even after Steve Jobs died…go figure.

  17. jbond
    April 11, 2012

    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.

  18. Jay_Bond
    April 11, 2012

    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.

  19. Barbara Jorgensen
    April 11, 2012

    They could always move the the Netherlands…

    🙂

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