Apple (AAPL) has been on a tear since reporting its earnings. It broke above its previous resistance levels of $115 – $120 and the stock looks unstoppable. Further, everyone believes that AAPL is a strong buy and that the company is worth at least a Trillion. Consider the following.
- Icahn: Apple is already worth $1.3 trillion
- Why You Should Buy Apple Now
- Can Tim Cook grow Apple to a trillion?
While I don’t typically bet against Carl Icahn, you might want to be very careful here. Here is why. As illustrated above, the overall bullish overtone on the stock is excessive. And if I had a penny for every “no brainier” investment that went sour, well, I would have a lot of pennies.
Would Apple be properly valued at $1 Trillion? That’s debatable. There are a lot of people who believe that Apple is worth a lot more. As Carl Icahn does. Then there quite a few people who believe that Apple is excessively overpriced here. Pick your medicine. Finally, should a bear market develop as anticipated, it is highly unlikely that AAPL will be able to maintain today’s levels. In other words, Apple might be at or near its top.
