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Bits & Bytes: Talks Of A Trillion-Dollar Market Cap Are Popping Up Yet Again For Apple Inc. (NASDAQ:AAPL)
Alex Daley: Fresh off Apple Inc’s (NASDAQ:AAPL) record-breaking quarter, talk of a trillion-dollar market cap is popping up… yet again. The latest comes from UBS. The investment firm believes Apple can reach the trillion-dollar mark on the back of a “mega-ecosystem”, which includes the iPhone and services like Apple Pay, Car Play, HomeKit, and HealthKit. A trillion-dollar market cap implies share price appreciation of around 35%.
Still, at least one famous fund manager is reducing his stake. David Einhorn of Greenlight Capital recently sold around a half-million Apple shares. But he still holds about 8.6 million shares, making Apple one of his top positions.
Apple will buy Tesla. That bold prediction comes from tech pundit Jason Calacanis, who cites 19 reasons why Apple will scoop up the electric carmaker. The deal will happen in the next 18 months, claims Calacanis. He sees a purchase price of $75 billion, a hearty 300% premium over Tesla’s current market value. But shareholders might want to reject that bid. CEO Elon Musk thinks Tesla’s market cap could match Apple’s in 10 years. That would mean a 30-fold increase in share price.
It will be one of the most expensive Apple products to date. We’re talking about the coming Apple high-end watch, which will be cased in 18-karat gold and carry a price tag in excess of $4,000.
Apple is pouring nearly $1 billion into a solar farm, which CEO Tim Cook describes as the company’s “biggest, boldest and most ambitious project ever.” Cook claims the investment will have significant environmental and financial benefits via savings on powering the company’s energy-hungry data centers. Apple is working with First Solar, Inc. (NASDAQ:FSLR) on the project.
One last thing about Apple, in case you were hiding under a rock. It’s reportedly developing an electric vehicle, dubbed project Titan. The prototypes of the project appear to be in the form of minivans, which have been spotted in New York and California. Some say the project is essentially a publicity stunt. Others say Apple is dead set on developing a car, which is bad news for Big Auto.
Turns out Apple isn’t the only tech company eyeballing the auto market. Sony Corp (ADR)(NYSE:SNE) recently took a 2% stake in ZMP, a Japanese startup making robot cars. The two firms ultimately hope to develop self-driving car technologies by combining Sony’s expertise in image sensors with ZMP’s expertise in robotics. Sony aims to be number 1 in auto image sensors.
Meanwhile, Sony is going through a major overhaul, which includes moving away from low-margin products like computers, televisions, and mobile phones. Hopefully, Sony’s hideous smartglasses are on the chopping block too. The restructuring effort will help lead to a 25-fold profit jump by 2018, according to the company.
Zero emissions is nice and all, but speed is what we really want. Tesla Motors Inc (NASDAQ:TSLA) Model S P85D has plenty of that. How fast? Try 0 to 60 in about three seconds flat. That kind of acceleration is comparable to some of the world’s fastest sports cars, such as Lamborghini, Ferrari, and even the McLaren F1 supercar.
Speaking of speed, 5G is on the way. The next-generation network should be rolled out near the end of the decade. It will boast download speeds of about 30 times that of its predecessor, 4G.
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Source: http://marketdailynews.com/2015/02/22/bits-bytes-talks-of-a-trillion-dollar-market-cap-are-popping-up-yet-again-for-apple-inc-nasdaqaapl/
