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Apple's $500 Billion Year on Wall Street

Apple's $500 Billion Year on Wall Street
December 18, 2019
Since the start of 2019, Apple’s market capitalization has increased by $500 billion or roughly the equivalent of Facebook’s market cap. For the first time with Tim Cook as CEO, Apple shares are trading a premium to the overall market. Something has clearly changed when it comes to the way Wall Street is treating AAPL. However, the items that analysts, pundits, and the media positioned as catalysts for this dramatic change (Apple Services, iPhone sales rebound, 5G, improving U.S. / China trade sentiment) likely have little to nothing to do with Apple’s share price outperformance in 2019. Instead, changing behavior as it relates to passive versus active investing may be creating a type of perfect storm for AAPL shares.

Outperformance

It’s difficult to put a $500 billion market capitalization increase in context. Here are a few attempts:

Disney ($262B), Netflix ($146B), and three Spotifys ($78B) combined.

AT&T ($282B), Comcast ($196B), and a Spotify ($26B) combined.

Nearly two ExxonMobils ($588B).

Three Boeings ($558B).

Six Goldman Sachs ($498B).

Sixteen percent of the entire energy sector.

The market caps of the bottom 12% of the companies in the S&P 500 (60 companies in total).

https://www.aboveavalon.com/notes/2019/12/18/apples-500-bill...

Merry Christmas AAPL Investors!
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