Apple’s share price rocketed to a new record of US$632.21 on the Nasdaq exchange as Apple fever gripped the minds of many investors.Apple’s shares fell back slightly later in the day to close at $629.32, itself a record.
Investors were apparently responding to estimates by one broker that the shares could go as high as $1001 within 12 months, but were also helped along by Apple’s decision, announced last month, to resume paying a dividend from July, and to engage in a $10 billion stock buyback plan.
The stock has already risen 53 percent this year, spurred by soaring iPhone revenue and the debut of the new higher-resolution iPad. Apple’s market value is now $576.8 billion, well above the previous leader, Exxon Mobil, on $410 billion.
The eyebrow-raising $1001 estimate was made by analyst Brian White of Topeka Capital Markets. He said his estimate was based on demand for the next iPhone and Apple’s expected expansion into China and the TV market, the latter with launch of an innovative Apple TV.
“Apple fever is spreading like a wildfire around the world,” White said in his report, adding that Apple’s management under Tim Cook should now aim to become the first company to generate $1 trillion in revenue.