Long Wait for the First Trillion Dollar Company
This year hedge fund managers and stock analysts alike were calling for $1000 a share on Apple stock, saying it will soon be the world’s first trillion dollar company. Well the stock is faltering hard and I have not seen much common sense exercised in explaining why.
Apple’s biggest ideas of the year were simply to make one of their products smaller (iPad) and make another one bigger (iPhone). Not exactly the innovative powerhouse we witnessed under Steve Jobs.
In August the company began paying out their first dividends. So now a significant portion of their huge cash hoard is being pumped out to shareholders. This is another move that further nudges the company out of the high-growth-innovators category and into safe blue chip territory.
Blue chip companies don’t double their market cap overnight or in one year, they do it in 5 to 10 years. So let’s stop the $1000 dump beats for now.
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