Does Apple prove that the stock market can be a total joke?

Discussion in 'Trading' started by ChkitOut, Mar 8, 2013.

  1. The peak of apples market cap was 700 billion and it has since lost about 250 billion in market value in just a few short months.

    to put this into perspective it would be equivalent to wiping out google or microsoft completely in 4 months. Think about that.. Apple could "theoretically" have owned microsoft just 4 or 5 months ago.

    a little silly isnt it?
  2. Paper profits don't exist. AAPL proved that "market cap" is theoretical; the exit door is never large.

  3. but market cap isnt theoretical, its very real. if i wanted to buy apple right now i could not get it for any less than 405 billion.
  4. Sure you could. You've never heard of companies being bought out for less than their market price? Merger arbitrage and the like?

    On the other hand, it would be unlikely that it could have owned MSFT. Cash is not the same as Mkt Cap and MSFT actually has a board and CEOs and you know - those people - that would have to approve any takeover. What you see as the Mkt price on the exchanges is usually very different from the perceived value of companies by their management. This has been proven many times. So the stock market isn't a total joke, speculation on the other hand (what drove AAPL price up) is a total joke. What you're seeing is the disconnect between the people who know (managers, insiders) and the people who think they know (market speculators).
  5. Interesting that you bring up the buyout case. Even the rumor will raise the "market cap" because again - the door is much smaller than it looks.

    I didn't realize you were one such potential suitor. Most of us on here buy the shares so we can sell them later.
  6. What is amazing to me is that the implication that APPL has lost worth as a company. Competition has increased, but they still sell alot of products and pull in a ton of cash. Even if margins do come in they still make ridiculous money. They seem more of a value than a whole lot of companies selling with tons of debt, high PE's and much greater market place risk. Then again MSFT has cash up the butt and look what they've done for years now.
  7. Market cap means nothing. Relative performance does.

    As far as the market being a total joke, I agree with Nicholas Darvas.
  8. This was a game for billionaires...

    they sit around and say....."OK, APPL to 700. get on board."

    It's super easy to see on the chart!!!!

    So hopefully you buy 50 Call options when AAPL is at 400. get out at 700, and load up on puts.


    only a joke for people who can't read a chart.

    easy money!!!!!
  9. easy money aye.. .how much did you make off apple these past 8 months?
  10. I think he's quoting what the average joe would say. Not himself.
    #10     Mar 8, 2013