Several stock analysts are speculating that Apple’s share price could nearly double to break the US$1,000 threshold in the near future
How big can an apple get before it falls from the tree? That’s the question investors and analysts are asking as the market value and stock price of Apple Inc. continue to climb. The tech giant unveiled a new iPad this week, and the highly anticipated debut of the iPhone 5 and Apple TV are expected this year. That has several stock analysts speculating that Apple’s share price could nearly double to break the US$1,000 threshold in the near future—it has already doubled five times in the past decade, and currently sits at US$545.
On Feb. 29, Apple joined a handful of companies ever to surpass the US$500-billion mark in total market value. Every other company to break that barrier (including Microsoft, Cisco Systems and General Electric) slumped back below the mark within a year. While most investors remain giddy about Apple’s future, it could just as easily suffer the same fate. As Business Insider’s Henry Blodget wrote recently, the company’s “mindblowing” 24 per cent profit margin in 2011 could erode as the rest of the tech industry finds ways to compete against Apple’s slew of sought-after gadgets, currently sold at premium prices. Still, there is little doubt that Apple is in a dominant position, poised for further growth. For now.