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Apple’s Market Cap at $600 Billion

You mentioned the employees, by which even Apple would be smaller than Sony. Even if it was 200 mil it still wouldn't be 10 times Nintendo's peak.
Yeah, I was totally wrong writing 10 times the peak, honestly not sure why I thought that. Too tired to think clearly... clearly.

But hey, if we're going back to the employees thing, Nintendo is much smaller than Apple, Sony, or Microsoft (which was my whole point in the first place) >_>

Great market-cap-to-employee-ratio, though!
 
No surprise to me. When you hold a ipad in your hands it's like holding true power

This hyperbole baffles me. Sure, tablets are nice portable computing devices with strong software support, but they're still just that: portable computers with robust software support.
 
A company with 100 billion in cash should be worth 600 billion.

It doesn't really mean much beyond Apple not being buyable.
 
Hello, I'm thinking of buying some AAPL shares but Im a newbie in the share market.

So I'd like some explanation/clarity on the shares I'm getting.

What causes the market capitalisation to keep increasing?

I thought companies used to sell shares to get investment into the company and use those funds to run the business. But Apple doesn't need money any more. It has too much.

Are we just trading shares in the hope that other people will buy it at a higher price later on? Im really confused... If AAPL reaches a trillion dollar valuation, what does that even mean?

What causes the share price to rise and fall? If Apple continues to make more and more money where does this money go, does it just sit in a bank vault somewhere until they want to pay dividends? And how does making profit relate to the market valuation ?

All I'm basing my purchasing of AAPL shares off is that Apple will be successful for at least another 3 to 5 years and if they continue to be successful then that should lead to an increase in their share price?
 
Yeah, I was totally wrong writing 10 times the peak, honestly not sure why I thought that. Too tired to think clearly... clearly.

But hey, if we're going back to the employees thing, Nintendo is much smaller than Apple, Sony, or Microsoft (which was my whole point in the first place) >_>

Great market-cap-to-employee-ratio, though!
That title belongs to Valve.
 
I'd like for some mod to comment on it as well, to see if there's some reasoning or difference there.

Forget it, assuming for some strange reason they DO think we should all be spamming Samsung, HTC, LG, Motorola, Google, Apple, HP, ASUS, Dell, Huwaei and other quarterlies in gaming, I think its a terrible idea. The less visibility that new 'rule' gets, the less likely some guy will take up the cause and actually start posting them there.

That title belongs to Valve.


Valve has a market cap?
 
Also:

On December 30, 1999 Microsoft reached an intraday high share price of $119.94. With 5,160,024,593 outstanding shares (as of November 30, 1999), it had a market capitalization of $618.9 billion. This was the highest market capitalization ever reached by a publicly traded company.
Apple is just $19B away from beating Microsoft's record and setting a new one.

EDIT:

Prediction: This will happen before the year is over. Heck, I think it'll happen in the next 6 months.
 
This hyperbole baffles me. Sure, tablets are nice portable computing devices with strong software support, but they're still just that: portable computers with robust software support.

I was going way over the top to feel how being an apple initiated felt. I do not like what I felt
 
Yeah, I was wrong with the 10 times bigger thing, honestly not sure why I thought that. Too tired to think clearly, clearly.

And if we're going back to the employees thing, Nintendo is much smaller than Apple, Sony, or Microsoft (which was my point in the first place) >_>

Great market-cap-to-employee-ratio, though!

I'm not sure what you mean. The initial discussion was market cap. The point I was making was that Sony has many more employees than Apple but obviously aren't even close to comparable to Apple. Amount of employees is irrelevant to company size in terms of market cap. They can hire 20,000 more employees but if they only lose the company money than it doesn't help.
 
Also:

Apple is just $19B away from beating Microsoft's record and setting a new one.

No they aren't, because as already pointed out, Apple isn't at 600 billion right now. They are at 585.

Market cap is going to take a hit after they pay out dividends so it might not happen as they start giving money back to shareholders. Microsoft's market cap would be rivaling Apple's right now if they never paid out a dividend.
 
I'm not sure what you mean. The initial discussion was market cap. The point I was making was that Sony has many more employees than Apple but obviously aren't even close to comparable to Apple. Amount of employees is irrelevant to company size in terms of market cap. They can hire 20,000 more employees but if they only lose the company money than it doesn't help.
My only point was that Nintendo was smaller than Apple, Microsoft or Sony. Both in [historical] market cap and employee numbers.
 
Over the past two years, if not longer, Apple platforms have been home to some of the most fascinating, interesting, and exciting games released. Apple have not only gone toe to toe with Sony, Microsoft and Nintendo, they have soundly beat them at their own game.

in62mNEeqlSF6.jpg
 
No they aren't, because as already pointed out, Apple isn't at 600 billion right now. They are at 585.

Market cap is going to take a hit after they pay out dividends so it might not happen as they start giving money back to shareholders. Microsoft's market cap would be rivaling Apple's right now if they never paid out a dividend.
Oooohhhh won't you feel silly when it happens in a few weeks :P

I smell claim chowder.

Apple's stock is now $632 after hours.
 
Hello, I'm thinking of buying some AAPL shares but Im a newbie in the share market.

So I'd like some explanation/clarity on the shares I'm getting.

What causes the market capitalisation to keep increasing?

I thought companies used to sell shares to get investment into the company and use those funds to run the business. But Apple doesn't need money any more. It has too much.

Are we just trading shares in the hope that other people will buy it at a higher price later on? Im really confused... If AAPL reaches a trillion dollar valuation, what does that even mean?

What causes the share price to rise and fall? If Apple continues to make more and more money where does this money go, does it just sit in a bank vault somewhere until they want to pay dividends? And how does making profit relate to the market valuation ?

All I'm basing my purchasing of AAPL shares off is that Apple will be successful for at least another 3 to 5 years and if they continue to be successful then that should lead to an increase in their share price?

Buy an investment book on Amazon.

Whatever you do, do not buy stocks until you read.

A short and lazy answer to your question - why does Apple's stock keep going up in price: Because there's demand for it. It's a combination of real earnings and perceived consensus on explosive growth. If Apple gets tougher competition or just doesn't grow as they have in the past several years, their earnings could go down and the stock plummet 50%. Considering they aren't diversified in many markets, they're high risk of this happening. Part of it is purely a bubble...people like you that have never invested before want a piece of that Apple pie.

The last time this happened was here.
http://en.wikipedia.org/wiki/Dot-com_bubble#The_bubble_bursts
 
Hello, I'm thinking of buying some AAPL shares but Im a newbie in the share market.

So I'd like some explanation/clarity on the shares I'm getting.

What causes the market capitalisation to keep increasing?

I thought companies used to sell shares to get investment into the company and use those funds to run the business. But Apple doesn't need money any more. It has too much.

Are we just trading shares in the hope that other people will buy it at a higher price later on? Im really confused... If AAPL reaches a trillion dollar valuation, what does that even mean?

What causes the share price to rise and fall? If Apple continues to make more and more money where does this money go, does it just sit in a bank vault somewhere until they want to pay dividends? And how does making profit relate to the market valuation ?

All I'm basing my purchasing of AAPL shares off is that Apple will be successful for at least another 3 to 5 years and if they continue to be successful then that should lead to an increase in their share price?

Do not buy shares with this little knowledge of the stock market. You even called it a "share market". If you live in North America and do not know that it is called a "stock market" you should not invest.

I don't even know where to begin to offer educational reading material. Wikipedia maybe? http://en.wikipedia.org/wiki/Stock_market

I don't mean to be so rude in my post but I can't stress enough how bad an idea this is for you. Please don't do this.
 
That seems somewhat presumptuous.

Their market cap peaked around 3 years before they started paying dividends from what I can find.

Market cap peaked due to the tech bubble, the two things aren't related.

Every time a company pays out a dividend, the value of the company drops as cash transfers from the company to the shareholders.
 
This is nothing but bad news unless you're a shareholder.
Pretty much. The competition need to step up their game; Apple's dominance is getting out of control. Apple deserves every bit of its success though; they really do know their shit.
 
Pretty much. The competition need to step up their game. Their dominance is getting out of control.

Apple's tablet dominance doesn't seem unlike Windows desktop/laptop dominance. Would be hypocritical to get upset about it as a Windows user, but Apple definitely isn't my favorite company. They did right by promoting tablet computing, though.

Edit: That said, I really don't want iOS games cannibalizing traditional gaming. I don't care if people enjoy playing Angry Birds or whatever, but I can't say I'm a fan.
 
Edit: That said, I really don't want iOS games cannibalizing traditional gaming. I don't care if people enjoy playing Angry Birds or whatever, but I can't say I'm a fan.

with console gaming basically destroying the pc gaming landscape for 10 years, as a pc gamer I hope mobile/social gaming burns it all to the ground.

/bitter.
 
Because they are the industry leader.

Isn't that a bit like saying Facebook was an industry leader due to the popularity of Zynga games? Not saying there isn't a lot of potential or that sales numbers are anything to dismiss, but it doesn't seem like there have been many "core" gaming experiences beyond ports. Industry leader of the casual market to be sure, but hardly going toe-to-toe in terms of mechanics, graphics, etc.

with console gaming basically destroying the pc gaming landscape for 10 years, as a pc gamer I hope mobile/social gaming burns it all to the ground.

/bitter.

Isn't PC gaming in the midst of a revival now because of Steam? I have something like ten times more games on Steam than on Console.
 
Isn't that a bit like saying Facebook was an industry leader due to the popularity of Zynga games? Not saying there isn't a lot of potential or that sales numbers are anything to dismiss, but it doesn't seem like there have been many "core" gaming experiences beyond ports. Industry leader of the casual market to be sure, but hardly going toe-to-toe in terms of mechanics, graphics, etc.

It is a bit weird to make it a gaming story alone.

But at the same time, iOS is a powerhouse of modern gaming.
 
with console gaming basically destroying the pc gaming landscape for 10 years, as a pc gamer I hope mobile/social gaming burns it all to the ground.

/bitter.
I think it'd be better if Japan made a serious return and PC returned to being the dominant western platform, but I think the closest to that happening is handheld being lumped with mobile/social there. Although, depending on what Microsoft/Sony do next gen it actually seems feasible for Nintendo to cause something similar to occur.

But then I was primarily a console player BECAUSE of Japanese games, for Western games PC had traditionally been better throughout the 90s.
 
It is a bit weird to make it a gaming story alone.

But at the same time, iOS is a powerhouse of modern gaming.

Definitely not denying its influence. Just waiting for the talk to shift from the likes of Draw Something and Angry Birds to something more substantial. Perhaps it won't. Unlike other Apple products, the tablets actually appeal to me. However, the purchase wouldn't be justified over a Vita or PC parts due to the lack of developers and genres that appeal to me. Already have a Kindle Fire for browsing in bed or whatever, don't need other apps.

I think it'd be better if Japan made a serious return and PC returned to being the dominant western platform, but I think the closest to that happening is handheld being lumped with mobile/social there. Although, depending on what Microsoft/Sony do next gen it actually seems feasible for Nintendo to cause something similar to occur.

But then I was primarily a console player BECAUSE of Japanese games, for Western games PC had traditionally been better throughout the 90s.

Same position. Love Japanese games, haven't really seen them translate to PC/tablets beyond ports. If this were to change, then so would my reservations. For the time being, my hope remains that the console market can survive alongside the iOS market.
 
Do not buy shares with this little knowledge of the stock market. You even called it a "share market". If you live in North America and do not know that it is called a "stock market" you should not invest.

I don't even know where to begin to offer educational reading material. Wikipedia maybe? http://en.wikipedia.org/wiki/Stock_market

I don't mean to be so rude in my post but I can't stress enough how bad an idea this is for you. Please don't do this.

Buy an investment book on Amazon.

Whatever you do, do not buy stocks until you read.

A short and lazy answer to your question - why does Apple's stock keep going up in price: Because there's demand for it. It's a combination of real earnings and perceived consensus on explosive growth. If Apple gets tougher competition or just doesn't grow as they have in the past several years, their earnings could go down and the stock plummet 50%. Considering they aren't diversified in many markets, they're high risk of this happening. Part of it is purely a bubble...people like you that have never invested before want a piece of that Apple pie.

The last time this happened was here.
http://en.wikipedia.org/wiki/Dot-com_bubble#The_bubble_bursts

i live in Australia by the way - the terms are interchangeable here. but I'll go home and read my university grade finance book that I picked up from my fiance. Although she did finance in uni she hasn't got any great answers for me.

I get all the things you guys have said. So it sounds like its just demand for the shares that increase the share price. As long as someone out there wants to buy the shares at a higher price the price will keep increasing.
 
I've been hearing investors are fearing Apple stock has peaked and is going to start going down, shortly.

Apparently Apple's wireless partners are not making money on subsidizing Apple's $600 phones @ $200, so they're going to cut back on it.
 
Will Apple be the start of the next tech bubble? Only time will tell, but one thing is certain. Their current growth and value is unrealistic and speculated beyond belief.
 
Market cap peaked due to the tech bubble, the two things aren't related.

Every time a company pays out a dividend, the value of the company drops as cash transfers from the company to the shareholders.

I realize that dividends affect the price. They've paid out around $7 in dividends per share since they started by my calc. However, to rival Apple's current market cap with 8.39B shares outstanding they'd need a price higher than their 1999 level.

Are you saying that if they had withheld dividends they'd be at that price range?
 
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