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[TPU] Apple On Track for Trillion Dollar Valuation

5K views 67 replies 44 participants last post by  BlackVenom 
#1 ·
Quote:
Today Apple announced its market value to be $500 billion dollars after a massive stock surge Monday. The tech giant's valuation is now nearly halfway to the 10-figure mark, with speculation Apple will launch iTV later this year driving shares to new record highs. Yet, Apple still has a way to go to become the most valuable company of all time. If Apple shares continue to hit new record levels, its market cap will reach $500 billion when the price reaches $537.

Still, shares will need to rise another $100 above that level to put Apple in contention for the most expensive company ever.
Source
 
#4 ·
Quote:
Originally Posted by Jagged_Steel View Post

In other news, the dollar is now only worth 2 cents compared to when GM was worth $12 Billion in 1952.
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this. GM all the way. let crapple, make crab apples for the old ladies
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#5 ·
Quote:
Originally Posted by Jagged_Steel View Post

In other news, the dollar is now only worth 2 cents compared to when GM was worth $12 Billion in 1952.
rolleyes.gif
Exactly, same thing with the economy people are thinking its getting better because stocks are going higher but they forget how much the dollar has fallen in recent years. Doesn't matter how high your valuation is if the dollars that make up that number are worth much less.
 
#8 ·
Quote:
Originally Posted by kikkO View Post

A trillion dollars don't mean much these days.
Just compare how much your dollar was worth back in the Prohibition days and now.
Inflation.
1776-1932 : Gold is worth $20 / ounce. 2012 : Gold is worth $1725 / ounce and will most likely top $2000 this year. That's a 100 times increase or 10,000% percent inflation.
 
#10 ·
Quote:
Originally Posted by Evermind View Post

It says in the article, Microsoft in the year 2000 had around $650 billion market cap.
$876,981,118,788 2012 dollars.

So apple has some way to go before catching microsoft.

By comparison the 1952 GM company worth 12 billion

$103,623,339,728 2012 dollars.

So far looks like microsoft still holds the crown as most valuable company of all time.
 
#11 ·
Quote:
Originally Posted by Jagged_Steel View Post

1776-1932 : Gold is worth $20 / ounce. 2012 : Gold is worth $1725 / ounce and will most likely top $2000 this year. That's a 100 times increase or 10,000% percent inflation.
The dollar was incredibly unstable when it first debuted. I think 1936 dollar compared to the 2010 dollar would be a much better comparison.
 
#14 ·
Everyone talking about gold brings up an interesting point - if you graph the stock market since 2000-present in terms of gold, the stock market actually lost quite a bit of money over the last ~12 years. Or you could just plot gold or a Gold ETF vs. the DJIA. Or even if you go from ~1970 to present, Gold vs. stock market, gold outperformed by over double. Back on point, well, Apple's value still has grown a lot even plotted against gold and other commodities. Of course not as much as it has in $ terms, but it looks like it outperformed gold over the last ~10 years.
Quote:
Originally Posted by Jagged_Steel View Post

1776-1932 : Gold is worth $20 / ounce. 2012 : Gold is worth $1725 / ounce and will most likely top $2000 this year. That's a 100 times increase or 10,000% percent inflation.
100 times increase over about 235 years is more like 2% inflation. Good try though, A for effort (or being off by a factor of 5,000, however you want to see it.) http://www.wolframalpha.com/input/?i=x^235%3D100

If you want to eyeball the numbers, with 10% interest, using the rule of 72 you double your money every ~7 years. So do 2^x = 100. x = ~6. 6 * 7 = 42. If there was actually 10% inflation over the past 42 years, 1970 gold would've been worth $20.

The math behind it - suppose you have 10% inflation, over 1 year if you start with $1, it's now $1.10. Over 2 years, it's $1.10 * 1.10 = 1.10 ^2. Over 235 years, it's 1.10 ^ 235. the number 1 denotes 100%, 0.1 is 10% etc.

/math lesson
 
#16 ·
Quote:
Originally Posted by Jinto View Post

Apple televisions huh? I don't think I wanna pay $4,000 for a 32" television. Ya'know, the usual Apple inflated pricing.
The last leaks I saw about the pricing were $1500 for a 42". Which is still too much, but it's not that overpriced.
But they were just rumours.
 
#17 ·
Quote:
Originally Posted by jrbroad77 View Post

Everyone talking about gold brings up an interesting point - if you graph the stock market since 2000-present in terms of gold, the stock market actually lost quite a bit of money over the last ~12 years. Or you could just plot gold or a Gold ETF vs. the DJIA. Or even if you go from ~1970 to present, Gold vs. stock market, gold outperformed by over double. Back on point, well, Apple's value still has grown a lot even plotted against gold and other commodities. Of course not as much as it has in $ terms, but it looks like it outperformed gold over the last ~10 years.
100 times increase over about 235 years is more like 2% inflation. Good try though, A for effort (or being off by a factor of 5,000, however you want to see it.) http://www.wolframalpha.com/input/?i=x^235%3D100
If you want to eyeball the numbers, with 10% interest, using the rule of 72 you double your money every ~7 years. So do 2^x = 100. x = ~6. 6 * 7 = 42. If there was actually 10% inflation over the past 42 years, 1970 gold would've been worth $20.
The math behind it - suppose you have 10% inflation, over 1 year if you start with $1, it's now $1.10. Over 2 years, it's $1.10 * 1.10 = 1.10 ^2. Over 235 years, it's 1.10 ^ 235. the number 1 denotes 100%, 0.1 is 10% etc.
/math lesson
All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.
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#18 ·
If there's one thing I'm jealous of that is linked to Apple, it's jealousy of those who bought a few thousand dollars worth in shares before the iPod came out. An ex co-worker that I keep in touch with just sold his stocks for over $2 million.
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I think he invested more than $100,000 at $50/per share. With $100,000 that's about 2,000 shares, which at $493 are now worth $986,000. Mmmm he had a lot of money to begin with then, lol.
 
#19 ·
On track for trillion $ valuation......

No where near is more fitting considering they need to DOUBLE their entire value.
 
#20 ·
P.S its called the current market value of the dollar, not the 2012 dollar.
 
#23 ·
Quote:
Originally Posted by firestorm1 View Post

apple. followed by exxon mobil.
I find it hilarious in discussions that people bring up oil companies who have to deal with hostile suppliers and orwellian government taxation to bring in a 12% profit. However, Apple can sit nice and pretty at over 30% profit and people somehow seem fine with it.
 
#25 ·
Quote:
Originally Posted by Jagged_Steel View Post

All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.
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The definition of inflation is the percent increase on an annual basis. If gold increases 10,000% over 100 years, that's not 10,000% inflation. If I put money in the bank now and get 8% interest on it, it'll double in perhaps 10 years - that doesn't mean it's 200% inflation when it doubles.

From Investopedia:
Quote:
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase

Read more: http://www.investopedia.com/university/inflation/inflation1.asp#ixzz1mUIbJgdt

So lets take 8500% increase over 80 years. Plug that into my witchcraft calculator and tell me what the inflation rate for that is.
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Hint: Sometime increasing 85-fold over 80 years would be 100% inflation if it didn't compound. But, it compounds, and as such, it's actually under 6% inflation. I'll use the barbaric ballpark method, maybe you'll be more convinced. http://www.wolframalpha.com/input/?i=1.06^85 6% inflation over 85 years would lead to a 141-fold (14,100%) increase, over those 85 years. Still 6% inflation.
 
#26 ·
Quote:
Originally Posted by Jagged_Steel View Post

All of the inflation occured from 1932 to the present.In 1932 the Dollar was redeemable for 1/20 ounce of Gold, i.e 1 ounce = $20. It was in 1933 that the Dollar was de-coupled from Gold. At the current Gold value of $1,735 it is "only" about 8,500% percent inflation ( I did that in my head @ 6 a.m. before any coffee, didn't even need to post a bunch of formulas to "impress" you), and as I said, Gold will most likely hit $2,000/ounce this year. 100x times increase from $20 to $2,000 is 10,000%. Good try to spin reality using false data and GIGO methodology though.
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did you even read his response to your original post? Christ...
 
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