Desmoines News Desk

Apple’s $1 trillion dream slips away

Apple’s $1 trillion dream slips away

Remember all the talk about Apple racing to be the first company worth $1 trillion? Looks like the party will have to wait. Shares of Apple are sinking along with the rest of the market. Apple’s stock is down $1.53 cents, or 1.2%, to $124.72 Friday. But more importantly, shares have dropped $8.88 a share since peaking this year – erasing $51.7 billion in market value in just weeks. Savvy investors could have seen that coming.apple-store

That leaves Apple worth $726 billion – which makes it the most valuable in the Standard & Poor’s. But that’s still a far cry from a trillion bucks. Traders are also pointing out that Apple’s stock is breaking down – seen by the stock falling below its average price over the past 50 days. That’s usually not a great sign – although it’s important to note the same thing happened in January – only for the stock to soon after hit new highs.

Some investors and analysts are still holding out hope for Apple’s $1 trillion dream. FBR on Thursday started covering Apple stock and outlined exactly how the company will still reach the $1 trillion level in market value. “Ultimately, with Apple’s consistent ability to deliver innovative upgrades/new products with a proven core technology platform at its backbone and impressive margins, we believe the company is well on its way to hitting a $1 trillion market capitalization,” according to the FBR report.

FBR calculates the $1 trillion value by breaking Apple down into its various segments – putting price tags on each of them based on FBR’s estimates for future profits. Other analysts are bullish on Apple – just not as bullish as FBR. The current 18-month price target on Apple is $142.42 a share, says S&P Capital IQ. That price applied to the company’s 5.8 billion shares outstanding yields an expected market value of $829.6 billion.