Can Apple Continue to Grow?

[hidden wallet]

Is it time to get out of Apple or can it continue to grow. It hit a $700 billion valuation today. Is it headed to becoming the first trillion dollar company, or is it setting itself up for a major pullback?

[Tabs]

No one really knows....

Still, sometimes, it's hard to resist speculating. The smartphone market still has room to grow, and Apple for example, is rumored to be working on bezeless phones.

More importantly, to understand Apple's growth potential, you really have to look at and understand the Android players, since they are the dominant force in the smartphone arena. Sometimes, it's not so much Apple making the right moves as someone else, like Samsung, making a misstep like the Galaxy S5. That said, Apple's introduction of their phablets (iPhone 6 plus) definitely helped as well.

In the end, I can't stress enough that no one really knows. I still remember one time watching a reasonably well-informed analyst enthusiastically predicting $1000 shares before tumbling down from the $700s to the $500s. This was before the 7:1 split.

Finally, it's worth noting that Apple has been paying dividends since Steve Jobs passed away. So, by their own admission, Apple believes they are a "mature" company now, whose growth is slowing down. You can make your case either way, but it's something to consider.

[autoxer]

I certainly think they can continue to grow and I am also expecting a major pullback, but I can't predict when either of those things will happen, so I'm not the type of person that jumps in and out of stocks. AAPL is roughly 3% of my portfolio as part of my indexing strategy.

[JulieAlbright]

I really don't know much about their growth prospects other than the ApplePay thing seems interesting.

But if you look at their Fundamentals they are sitting on an almost unbelievable amount of cash and as with the recent bond issue - huge amounts at extremely low interest rates.

In my opinion the more interesting question is whether they will continue with the Dividends and at what rates. They have to do something with all that money.

[snafu]

I'm guessing there are a lot of new products/uses for smart phones starting their journey into common use. I saw the feature on Samsung who are working with business travellers to make airports easily navigable for people unfamiliar with a particular terminal. You can now access a map to guide you through, identify your passport and credentials so that you drop your luggage on the carousel with it's readable tag, pre printed boarding pass scanned on your phone or wrist band, meal ordered. No lineups like the frustrating 1.5 hours I just spent at HCMC [Vietnam] Airport, shuffled into three different line-ups, ending behind a Brit who spent 15 minutes asking a bewildered clerk an unending bunch of questions about his next destination's visa demands.

The even better innovation is no line ups to register at your hotel. Just punch in your security number, hold the phone next to the door code reader and walk into your room. Have you ever done the room line in Las Vegas? You arrive tired, looking forward to a 4 day break having been herded cattle-like through two airports and auto rental lines to a ridiculous 4th cattle call.

[krantcents]

Since no one really knows, this is where confidence in management is important. If you have confidence, you buy or hold. If not, you probably sell over the next quarter or two. Even if you do not own Apple directly, it has a huge influence on the S & P 500 index.

[Drake3287]

I bought it when it split last year and only wish I had purchased more shares. I'm up like 33%. In the long term I can't see how it won't go anywhere but up. If it drops to a certain level I plan to buy more. Between Apple, Starbucks and Disney things are looking up! Way up.

[JudyDunlow]

It's all about the iWatch now. Very interested to see if that idea catches on, or flops. Apple is the highest valued company in the world - and they just brought on a marketing genius from Burberry who is rumored to be making more than Tim Cook, the CEO - so I expect great things & some aggressive growth attempts over the next year. I'm long on $APPL right now.