JohnBlog

Lend me your mind's ear — communications and portals

How’s Apple stock been doing over the last six months?

leave a comment »

Not great.

It’s down about 12 per cent from its recent high. That’s over $3o billion.

While it may not be facing RIM’s challenges, Apple’s practically turned into a proxy for the Nasdaq over the last six months delivering about the same return. Of course, holding just one stock limits your diversification. Considering how huge Apple’s market capitalization has become, moving upwards now requires a tremendous investment in Apple.

Has it become a victim of its own success?

Consider: Apple’s market cap is now $300 billion. In order for it to increase even 10 per cent, Apple needs a $30 billion cash injection.

Not exactly pocket change.

Over the same period of time, Dell and IBM have outperformed returning over 10 and 15 per cent. The Dow has done better and so has the S&P TSX 60 with a lot more diversification.

Apple’s weighting in the Nasdaq has been lowered so fund managers don’t need to buy as much of Apple to keep pace with the Nasdaq.

Is bigger always better? Maybe not.

Update: The Android cometh – the latest chart on smartphone subscriber share

Apple stock’s been thinking different

Advertisements

Written by johnrondina

June 21, 2011 at 2:47 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: