NEW YORK - My cherry pie, you're my cake and ice cream, you're sugar and spice and everything nice, you're the stock of my my my my dreams. Perhaps Sam Cooke's song "Nothing Can Change This Love" went a little different especially with the use of the word "stock" but probably Apple stockholders have been singing about this love for years. Apple stock has gained its shareholders 11,000% over the last 14 years. That means $1 dollar invested in 1998 would be worth $11,000 today. Or, $1,000 would be worth $11 million today. Shareholders will certainly be able to afford a lot of cake and ice cream.
Apple continued to smash above $500 moving close to $510. The company now has a diluted valuation of $480 billion which dwarfs Exxon Mobil by two Helwett Pakcards. Exxon (NYSE: XOM) will need its share price to rise by over $18 to catch Apple.
Apple stock is up close to 22% since it reported on January 24th. The company simply destroyed any conceivable profit forecast. The company earned over $13 billion and investors found out Apple now has a 42% market share in the smart phone market. Which jumped over 14% from the prior quarter. No one could believe how they did it. The company's iconic products, the Iphone and Ipad have begun selling at an exponential rate.
Exxon which has a much higher tax rate than Apple also lagged Apple in terms of income from operations. However over the last full year Exxon still has trumped Apple in terms of profitability. Exxon has earned $41 billion compared to Apple's $33 billion.
Apple stock was up almost $10 today. As the company solidified its position above $500. I certainly would not want to be short 100 shares of Apple today!
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