Apple’s (NASDAQ:AAPL) stock price declined $7.79, or 1.22 percent, to end at $628.44 per share in Tusday’s regular trading session, but the shares once touched the highest level of $644, which is 1.2 percent higher than Monday’s closing price. Calculated by the highest AAPL stock price, Apple’s market capitalization topped $600 billion, which is the first time the company’s market capitalization reached this level, less than two months since the company commanded a market value of $500 billion.
U.S. investment institution Topeka Capital Markets analyst Brian White released a research report last week, raising Apple stock price target to to $1001 per share. Based-on the target price, Apple will command a market value of $932 billion. White pointed out that Apple will sell iphone through China Mobile and introduce Apple TV, which will expand the company’s user base.
In contrast, research institution BTIG analyst Walter Piecyk released a report on Monday to downgrade AAPL stock from “buy” to “hold”, saying the company’s current profit margins could not be maintained. He pointed out that the grants paid by the telecom operators for the iPhone cause damage to their profits and will therefore limit the upgrade policies, which will also lead to higher prices of the latest iPhone, curbing customers to buy the new product.
Pacific Crest Securities analyst Andy Hargreaves also pointed out that Apple still has the space to grow after its market value touched the $600 billion mark, but this space has been not as large as before any longer. He believes that despite the interests in the Apple’s products are still strong, there are less and less people who can afford them.
In addition to Apple, there is only one company whose market capitalization once exceeded $600 billion mark. Microsoft (NASDAQ:MSFT) commanded a such level of market value for 13 trading days between the end of 1999 and the beginning of 2000, which was also during the dotcom bubble. The current market capitalization of Microsoft is only $ 260 billion.
AAPL stock price has increased 59% this year.