Apple Stock Could Reach $1,000 Per Share By 2014, Says Analyst
With a price like that, you'll wish you bought it at $624.
If robots eventually destroy mankind, we'll probably have Apple to blame.
Why? Because the Cupertino-based company continues to grow at an alarming rate, and will likely have the cash necessary to create the artificial intelligence that'll one day destroy us.
Science fiction aside, Piper Jaffray analyst Gene Munster feels that Apple may become the world's first trillion-dollar company by 2014. Not only that, but its stock price may soar to $1,000 a share.
"We believe there will be enough value over the next two plus years for Apple to add another $400 billion in market cap from a combination of growth in dollars invested in tech and continued shift from major Apple competitors. We believe dollars invested in US technology companies will increase five percent year-over-year on average for the next three years. By comparison, dollars invested in US tech companies were up 9% year-over-year in 2011. Therefore, the tech sector will add $390 billion in market cap through 2014. We assume Apple could capture half of this market cap (from 85 percent in the four years prior)," said Munster.
"The companies we consider to be the 10 most relevant competitors to Apple (Samsung, HTC, RIMM, Nokia, Sony, Dell, HP, Microsoft, Intel, and Google) represent nearly $1 trillion in market cap today. We believe 20% of that value, or $200 billion could shift to Apple through 2014. Thus there is potential for Apple to repeat history and add another $400 billion to its market cap. At a $1,000 share price (roughly $1 trillion in market cap) Apple would represent 26 percent of the total US tech market cap from 17 percent today."
In addition, he also feels Apple will dominate 60 percent the tablet market by 2015.
In other words, it might be a good time to invest in a nuclear bunker.