That means Apples share price can set a new record by just over 5%. Last week, Wade Bush securities raised Apples target price to the highest level on Wall Street. The company said that apple is expected to reach the $2 trillion threshold of market value in the short term. there is still a lot of fuel in Apples fuel tank, which can drive its rapid growth and last until 2021. .
Apples soaring share price has made it the worlds most valuable company, recently overtaking Saudi Aramco. Its market value is now steadily ahead of Microsoft and Amazon, the second and third largest in the United States. The market value of these two companies is about $1.6 trillion. Apples market value is equivalent to 85% of the total market value of the Russell 2000 index.
Apples size gives it an extraordinary influence across the stock market. The stock has a 6.5% weight in the S & P 500 index, the largest in 40 years. The combined weightings of apple and Microsoft, the most important component stocks, are also at their highest level in decades, according to data compiled by Bloomberg and the S & P Dow Jones index.
At the same time, cook joined the club of super elite CEOs, who didnt actually create the companies they were running. Mr. cooks net worth is more than $1bn, according to a calculation by the blog billionaire index.
Cooks net worth estimate is based on an analysis of the documents submitted to regulators and combines the market performance of a typical wealthy investor with the proceeds of his share sale. Cook, 59, said in 2015 that he planned to donate most of his wealth, and has now donated millions of dollars in Apple shares. If he had made other undisclosed charitable donations, his wealth might have been reduced.
Apple spokesman Josh Rosenstock declined to comment. This technology cycle is much bigger and longer than I thought, says Hussein kanji, a partner at venture capital firm Hoxton ventures. Of all the stocks, Apple has become the greatest cash generating machine in history. After jobs left apple, Kanji was cautious about Apples long-term prospects.
Apples market value and cooks wealth reflect the rise in the so-called faang stock, which did not exist in the jobs era. At the same time, cook and the CEOs of other big technology companies, Jeff Bezos of Amazon, Sundar Pichai of alphabet and Mark Zuckerberg of Facebook, all face antitrust investigations, which critics describe as monopoly giants..
While Bezos and Zuckerberg have large stakes in the companies they created, cooks path to a $1 billion club is more gradual. Most of his wealth comes from the stock awards he received after joining apple in 1998. On his first day as CEO, he received a large amount of restricted stock awards. Equity is paid annually, some of which require Apples stock to outperform at least two-thirds of S & P 500 companies. Unless Apples share price falls suddenly, cook will receive his ninth bonus later this month, including 560000 shares of apple stock.
Half of Cooks stock awards may be subject to tax withholding, but the rest should add another $100 million to cooks wealth. He currently directly holds 847969 shares of apple stock, about 0.02% of Apples equity, worth about $375 million. According to statistics, the previous sale of shares, dividends and other salary income increased cooks net assets by another 650 million dollars.
Cooks stake is small compared to the large stakes in their companies controlled by founders such as Bezos, Zuckerberg and Tesla chief executive Elon Musk. Apples shares are widely distributed among different investors and executives, so the worlds most valuable company has created few billionaires among its employees.
When jobs left office and died in August 2011, cook had filled the vacancy of interim CEO on several occasions. But investors and analysts worry that Apple will not be able to innovate as it has in the past.
Although Apple hasnt released a groundbreaking new product like the iPhone in the past decade, the company is still thriving. Cook led the development of equipment such as iPhoneX and AppleWatch, the launch of new services such as AppleMusic, and the development of new fields such as self driving cars and augmented reality glasses.
Even if the outbreak has hit many other sectors of the economy, its a boon for apple and other big tech companies as people become more dependent on their products and services.
However, some analysts are cautious about the recent surge in Apples share price. Deutsche bank analysts said there were a number of factors that let us pause bullish, including a price earnings ratio above the long-term average. Despite the rise in Apples share price, its gross profit margin and operating profit margin are not very high. And over time, its revenue growth has not really accelerated.
While there are many reasons to explain this relatively good performance, this trend may not be sustainable in the short term, said wamsi Mohan, an analyst at Bank of America, which downgraded Apples shares last week. Although Apple has many positive factors, the risks should not be ignored. (small)
Source: Wang Fengzhi, editor in charge of Netease science and Technology Report_ NT2541