Apple’s (NASDAQ: APPL) market cap continues to grow and shows no sign of slowing down.
The tech giant hit a record valuation of $700 billion in November, and posted the most profitable quarter in the history of corporate America in January. By the time the Wednesday trading day wound down in the United States, Apple was at the $123 mark putting its market cap at $719 billion.
Some analysts believe it’s set to go higher. Polling of analysts done by Bloomberg puts its target price at $132 a share. One analyst firm from China, First Shanghai Securities, believes the value will hit $165 putting the company at a market cap of $960 billion.
Activist investor and Apple shareholder Carl Icahn thinks the value will go even higher. In an interview with Reuters he said he believed Apple’s real value is $216 a share which would put the firm’s market cap at $1.3 trillion — roughly the size of South Korea’s GDP. Icahn based this spike in value on his belief that Apple’s smartwatch will be a success and it will introduce a TV within the next two years.
To keep growth constant Apple is expanding fast in China, its biggest market, opening stories in second tier cities — away from the glitz and glamor of Shanghai, Beijing, Guangzhou and Shenzhen. China’s telcos are rapidly rolling out 4G, which should only increase sales of high margin 4G enabled phones. Keep in mind that the likes of Xiaomi cater to a different market, and the company’s business model doesn’t allow for the generous margins.
Will Apple’s growth ever stall? Of course it will, but at this rate not in the near future.