As the entire investing world knows, Apple Inc. (NASDAQ:AAPLB) stock closed Tuesday at $153.99 putting the company’s market cap above $800 billion, a first for any U.S. company. At Wednesday’s closing bell, the stock stood at $153.26, down $0.73 from the previous day’s close with a market cap of $799.07 billion.
Apple’s stock is up by about 33% in 2017 and double that – 66% - over the last year. Another way of looking at it, Apple’s market cap exceeds the combined market cap of the 102 smallest companies on the S&P 500 according to FactSet.
A Cheap Stock To Own
Warren Buffett and Berkshire Hathaway Inc. (NYSE:BRK-BC) are known for investing in value stocks. Buffett recently increased Berkshire’s Apple holdings. Buffett’s Apple buy and investor enthusiasm for the release of the company’s 10th-anniversary iPhone later this year has boosted the stock.
Apple’s current selling price is just under 16 times earnings, based on earnings estimates for the next 12 months, making it one of the less expensive stocks by general profitability metrics. That PE number, by the way, is up from just under 12 before the November presidential election but still well below other tech companies and the S&P 500 as a whole.
So What’s Next?
With anticipated sales of the new iPhone leading the pack, behind the scenes Apple chit chat keeps the rumor mill alive. The latest has to do with Apple employees testing a so-called “Siri-speaker” to rival Amazon.com Inc.’s (NASDAQ:AMZNC) Echo device. Current chatter indicates the device could be unveiled as soon as Apple’s developer conference in June.
Although some observers place chances for the announcement in June at only 50%, such a reveal would make sense – especially if Apple wants developers to build applications for the device sooner rather than later. Whenever it happens, consumers have been anxious for Apple to put Siri in homes, especially since she was the first digital assistant way back in 2013.
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WWDC And BeyondSpeaking of the Worldwide Developer Conference in June, this even always seems to be launching point – or near-launching point for new products. It’s worth noting what the experts expect next month.
Among potential products getting press are a new iPad Pro and along with that, the rumored Apple Pencil 2. New features of the Pencil include Smart Cover integration, iPhone support and even MacBook trackpad features.
Other products include a new iMac with a new keyboard and upgraded memory and processing power. Upgrades could also include advances to the recently launched MacBook and MacBook Pro. Rounding out the rumor/news mill, Apple’s first original TV show, a Carpool Karaoke spinoff and a watchOS 4 preview to go along with a new Apple Watch Series 3 – likely in September.