On July 20th, it was reported that Apple had the money to purchase Dell twice over with still having $10 billion left in the bank. Six days later, Apple’s share price hit $403.41 per share. Today, the company’s share price rose nearly 3% to close at a new all-time high of $411.63. The share price touched $413.23 late in the after market, but closed at $411.63 per share.
Not only did Apple’s share price close at a new all-time high, but it also retained its title as the world’s largest company by market capitalization. Apple has overtook Exxon (the former world’s largest company) by $23 billion. In fact, since Apple overtook Exxon for the first time in August, its market capitalization has grown by more than $44 billion. The company’s market cap is now at $382.01 billion compared to Exxon’s $358.34 billion.
Wall Street and investors expected Apple’s share price to take a hit when co-founder Steve Jobs resigned as the company’s CEO in late August. Since that time, nearly four weeks ago, Apple’s stock is up 15% and is now higher than it had ever been under Jobs. Clearly, they hit the nail on the head. It should also be noted that even at this price Apple’s share price is undervalued.
The reason for today’s spike is unknown, but I would presume that investors knew something that we didn’t. Possibly details regarding Apple’s future plans for the upcoming next-generation iPhone might have triggered this. According to an analyst from J.P. Morgan, Apple will launch two versions of the iPhone soon.
If you still think Apple is doomed without Steve Jobs, think again.
Disclosure: Parth Dhebar is an investor in Apple Inc.