“Apple (AAPL) crossed an amazing milestone in after-market trading yesterday, when its market capitalization exceeded $500 billion for the first time,” Henry Blodget writes for The Business Insider.
“Apple is one of the only one of four companies in history to break this mark, and unlike others that have briefly traded in this neighborhood–Microsoft (MSFT) and Cisco (CSCO) –Apple has the potential to not only sustain this value but blow past it,” Blodget writes. “Why?”
Blodget writes, “First because Apple’s stock still is not expensive on traditional valuation measures… Second, Apple’s penetration of its key product categories is still relatively low… Lastly, for those focused on near-term catalysts, Apple should have plenty of good news to announce over the next six months. The iPad 3 is expected next week, the iPhone 5 should appear this summer, and Apple’s TV is expected in the fall… So it is not, actually, far-fetched to think that Apple’s value could eventually hit $1 trillion or more.”