Google Has won the race to $1000, one which Apple was tipped to win back in 2012.
It is certainly a counter argument to the efficient market hypothesis that anyone should care about these round number milestones.
Nonetheless Google smashing through that ceiling has made global headlines.
And google does have the bull and the world by the horns.
Whereas great companies of the past have cowered before regulators and governments, from standard Oil through to Microsoft, Google is the first corporation to tell whole countries to deal with Google on its own terms.
It is impressive but after all that Google at $1000 a share is still only 75% of the market cap of Apple.
But while goggle is still far off Apple’s market cap by a chunk, its sales are a mere third of Apple its last annual profit 25%.
In a nutshell Google’s P/E is nearly two and a half times Apple.
The argument for such disparity is Google is an unassailable monopoly while Apple is a vulnerable maker of electronic-fashion items.
However Apple is still the more valuable company.
Clearly Apple isn’t the go-go stock it used to be, so what now?
Well this is what I last wrote, saying Apple was going to follow the path of Microsoft in its post bubble life.
This is where we are now.
So we are still very much in line with this prediction.
However circumstances change and it is always the case that other will have a better insight than you as an outsider can possibly get and as such the stock chart will tip you off if in the deep foreground bad things are happening.
The following trend prediction is what holders need to keep an eye out for.
If this starts to develop consider the thesis that Apple is on its way back to normality.
The bull want to see this chart.
This would be a repeat of 2007-2008 on a grand scale.
If the post debt ceiling bring the market to euphoria and the new ipads are amazing, it might happen, however I can’t see it myself.
The new blue eyed boy of the market is Tesla, so the kind of speculators that levitated Apple to $700 are now looking to Elon Musk and away from Infinite Loop for their dreams.
In the bi-polar US stock market a share can go from Hero to Zero very fast as any holder in Blackberry will tell you.
Nokia with its great Lumina product sold to Microsoft for third of sales.
At that ratio Apple would be worth less than $100 a share.
Blackberry and Nokia underline the downside for Apple.
Both Nokia, Blackberry are fallen titans, who would have thought they would be so quickly consigned to the history books.
However Apple is likely to muddle on, riding on the back of its vast momentum and monopoly eco-systems.
The next big test of this thesis will be the new ipad releases. More of the same from post miracle product Apple? It seems highly likely.
As such we can likely expect more of the same lacklustre performance from the Apple stock price.