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Investors’ Reactions to Apple Reaching $1 Trillion Market Cap Vary Widely

This week’s Sentiment Survey special question asked AAII members what they thought about Apple Inc. (AAPL) trading at a $1 trillion market capitalization. We received a variety of responses. Approximately 17% of respondents say “good for them” or something similar, while 8% say they expected it to happen. Four percent regret not buying the stock many years ago. A little under 6% think the stock is now fairly valued, while 5% say Apple is undervalued. Almost 12% think the stock is overvalued, and 5% think the stock is vulnerable to drop especially if the market falters. Slightly more than 15% say they don’t care or that crossing the $1 trillion mark doesn’t affect their views of the stock.

Here is a sampling of the responses:

  • “The product is good, and the P/E is reasonable. What’s not to like?”
  • “Great! They deserve it.”
  • “Too high. The stock will probably decline, and I do not see how they can continue to improve the phones.”
  • “I wish I bought the stock 15 years ago.”
  • “It’s just a number. It’ll be equally uneventful when they stumble and drop below $1 trillion.”
  • “I think it’s great because I own a fair amount of it.”

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