In prior posts we’ve compared Apple’s market cap and cash position to country GDPs. Here is our update, which also includes annualized revenue and profits from the recent earnings release.
Apple’s market cap is now larger than all three European PIG (Portugal, Ireland, and Greece) economies. The company’s annual revenue and cash position would rank 60 and 64th of the 180 plus economies tracked by the IMF. Apple’s annual profits are more than double the size of Iceland’s economy. The upshot is the Apple nation is growing!
We’re disappointed and surprised how Apple is trading after its blow out numbers. Our sense is that weekly options are keeping the stock from taking off as those who bought calls at high premiums prior to earnings are barely above water even after the $10 move and are lightening up. It could also be the that some Board members are talking about a succession plan, which is spooking investors, and the very fact that Apple has become so big it takes a lot more firepower from the rest of the market to move it. At the end of the day, however, nobody knows for certain.
Nevertheless, we believe more want to buy this stock than sell it and look for it to head much higher as they tap into and realize the growth potential of China and BRIC demand. Management announced a staggering 247 percent annual revenue growth in Asia Pacific in latest quarterly results. This company even works in a down economy. It’s the younger generation’s escape in troubled times as fishing and movies were for the greatest generation.
And, please, no lectures on comparing stock and flow data!
(click here if table is not observable)