Why Apple’s share price has ways to go

“Apple (AAPL) just reported a tremendous quarter where earnings per share eclipsed 13.87 dollars a share, while revenue jumped 74% to 46.3 billion, and net income doubled to an astounding 13.1 billion,” Adam Grossman writes for Seeking Alpha. “With Apple’s recent earnings beating, S&P raised its full year EPS to 41 dollars a share which means that Apple is currently trading on a forward P/E of 10.9.”
“These numbers that were released model what growth investors like to see in explosive small and mid cap stocks, however Apple with currently a 422 billion market cap, it is acting like a start up company when it comes to growth rates,” Grossman writes. “Apple is able to keep consumer loyalty by offering high quality and endlessly innovative products on the shelf that no other company can match. Although these numbers that were reported were astronomically high, I believe Apple will continue to deliver pulverizing earning beats for years to come.”

Grossman writes, “With Apple’s core products being the iPhone 4s, Mac computers, and iPads, Apple has only gained a majority share in only one product. Apple currently holds a 7% market share in computer sales, while the iPhone maintains a 45% market share in smart phones, and lastly the iPad presently has 68% market share. Although these numbers seem large, there are large opportunities for Apple to increase its market share.”


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