Apple has become the first US Company worth more than $700 billion. This comes as no surprise to analysts, who typically see record-breaking valuations following record-breaking earnings. Apple reported fourth-quarter earnings of $18 billion. This is more than any public company has ever reported in a quarter.
To put this massive valuation into perspective, Apple is worth almost twice as much as Exxon Mobile, the second most valuable company at $385.4 billion. Analysts are calling Apple stock a “screaming buy”, and see a 7% upside in the stock over the next 18 months. The recent historic valuation comes at the heels of CEO Tim Cook participating in Goldman Sachs Technology and Internet Conference in San Francisco. At the conference, he discussed the upcoming Apple Watch, as well as discussing plans for a 1,300-acre solar farm in Monterey County, Calif.
Although some analysts are warning that Apple’s stock is getting too high, the majority of Wall Street sees no such threat to stop the company’s rise. “There’s nothing changing the near term to suggest any competitive risk to Apple’s business and profit margins”, says Alex Gauna, analyst at JMP Securities. Analysts believe there is no reason to question Apple’s massive valuation until the stock reaches at least $150.