Apple Inc. (NASDAQ:AAPL) attaining a $700 billion in market valuation is scaring a lot of people according to CNBC’s Steve Grasso especially on the ability of the stock to continue spiking in the months to come. Grasso remains confident that the stock will continue to rise at the back of the newly released iPhone 6, amidst a lack of devices from rivals that was expected to offer competition in the space.
“I think as long as the market cap story does not get a lot of legs because that does scare a lot of people for whatever reason; it scares a lot of people. I think you are okay to go higher on Apple Inc. (NASDAQ:AAPL),” said Mr. Grasso
The $700 billion market valuation earlier in the week is nearly double that of second-placed Exxon Mobil Corporation (NYSE:XOM), which has continued to sink amidst declining oil prices. Karen Finerman, on the other hand, believes the latest achieved levels present a challenge on portfolio management especially on whether to hold or offload stakes.
Timothy Seymour, who is long on Apple Inc. (NASDAQ:AAPL) stock, remains confident on the stock attaining highs achieved 5-6 years back. Activist investor, Carl Icahn, is one of the prominent personalities who has consistently maintained Apple stock is undervalued.
“I think it can re-rate, I think it can re-rate somewhere to where it was 5 or 6 years ago, it certainly should not have been trading back to the 8-9 times especially ex-cash. The ecosystem to me is worth a lot more, and if you look at peers in that space, that’s where the multiples should come from. I stay long in the name and nervous,” said Mr. Seymour.
Apple Inc. (NASDAQ:AAPL) is one of the most sold after stock in the market with big investment firms offloading stakes in the wake of the company attaining all-time highs. The level of uncertainty on where the stock is headed to, continues to be the biggest headwind prompting a lot of investors to make irrational decisions in terms of stake sales.
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