Apple (AAPL) just reported earnings a few minutes ago. In a nutshell, its clear to me this is a $750 stock.
Apple made a profit of $4.64 last quarter, 70 cents better than the $3.94 July 28 First Call estimate. Today estimates stood at $4.08 and I like that estimates didn’t jump a whole lot before the company reported — its tells me the stock didn’t get hyped up before earnings.
Before this great news came out, 2011 estimates were at $18.11 (AAPL’s year end is September 30th) with $21.14 expected for 2012. Think eighteen bucks and twenty one bucks.
With the 70 cent beatdown today, its not reaching out on a limb to think this company could make twenty five bucks in the future — either in 2011, 2012 or maybe 3013.
Apple’s the best technology company out there. Clearly it should be worth 30 times earnings.
30 x $25 = $750. Apple’s a $750 stock.
At the time of this publication, clients of davidsharek.com owned shares of AAPL.
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