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iBubble: Apple's Market Cap Is Now The Same As The Entire Retail Sector, Bigger Than All The Semis

Tyler Durden's picture


This is simply stunning: one company, which has two flagship products, has a bigger market cap than the entire Semiconductor space, and is just shy of the entire S&P Retail sector.

The 216 hedge funds in the name as of December 31 is hopelessly stale. We are certain that by now this number is at least 250, if not 300.



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Tue, 02/28/2012 - 15:14 | 2204970 goldencross10
goldencross10's picture

Weak US dollars help

Tue, 02/28/2012 - 15:15 | 2204979 firstdivision
firstdivision's picture

Stupid US consumers help a lot.

Tue, 02/28/2012 - 15:18 | 2205004 Troll Magnet
Troll Magnet's picture

iPad 3 on March 7th!  skip your meals and buy one!  it'll make you "look" rich and cool!

Tue, 02/28/2012 - 15:19 | 2205008 TruthInSunshine
TruthInSunshine's picture

Everything's coming up iTulips.

Apple has to much cash, and wants to bail PIIGS out.

Tue, 02/28/2012 - 15:20 | 2205015 American34
American34's picture

Durden, you should Tweet concerning this to Trump and Buffet to see what their responses are!

Tue, 02/28/2012 - 15:29 | 2205059 Pladizow
Pladizow's picture

SSSHHHHH, youll wake the sheeple and they love apples!

Tue, 02/28/2012 - 15:33 | 2205090 Comay Mierda
Comay Mierda's picture

just heard a ditz in my office say she just bought AAPL cuz she likes siri.  the sheep are about to get FLEECED.  AAPL is showing a typical bump-and-run reversal pattern.  but there will be several more days of cramer pumping up this piece of shit before it collapses

Tue, 02/28/2012 - 15:43 | 2205151 Michael
Michael's picture

The S & P should currently be in the 400-500 range. The current stock market/money bubble is going to pop in spectacular fashion just like it did back in 2000.

Tue, 02/28/2012 - 15:44 | 2205157 TruthInSunshine
TruthInSunshine's picture

Activist Apple shareholders want management to buy South America.

Tue, 02/28/2012 - 16:10 | 2205288 Cheesy Bastard
Cheesy Bastard's picture

An iBubble usually ends in an iPopping fashion.

Tue, 02/28/2012 - 16:24 | 2205345 trav7777
trav7777's picture

aapl has 100B in cash, it's a cash machine.  There are tons of people willing to line up for days to buy their shit.

An "excessive" market cap is presently justified.  Until the trend sours on them, it is what it is.

Tue, 02/28/2012 - 16:43 | 2205405 Popo
Popo's picture

Agreed.  This article is fucking annoying.  Apple isn't a "two flagship product company".  Where the hell did that idiocy come from?  

Read this carefully:

First off, AAPLE is a top 3 leader in the MEDIA space.  Secondly, AAPL has single handedly destroyed the entire media retail industry from Virgin Megastores down.  It is laying waste to the digital camera industry from Olympus down,   it has all but annihilated the handheld phone industry leader Nokia and it is devastating the industry leader Microsoft in the OS sector.  

What we need to do isn't to laud Apple's successes, but to step back and appreciate the trail of absolute devastation that Apple has left in it's wake.

AAPL's market cap is *entirely* justified.  ***BUT***  that's NOT a buy signal.  It's a signal that Apple has annihilated a serious percentage of the viable stocks on the S&P and is as much of a sell-signal as much as a buy-signal.

Apple is a Shiva: devourer of worlds.   Don't for one second think that this is a sign of an expanding economy.   Ask anyone in the publishing business.  This is the end of the road.  Ask anyone at Blackberry or Nokia.  These are the end-days.    We are witnessing the wholesale destruction of value.  Yes, Apple is kicking ass.  No, it's not good.   AAPL should indeed be soaring.  But the indexes should be shitting the bed.

Tue, 02/28/2012 - 16:49 | 2205481 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Apple's success is based on selling products people actually WANT to buy, and are willing to pay a premium for, manufactured at the lowest possible cost.


Compare this to Government Motors building products most people DO NOT WANT (Volts), giving away tax dollars to cronies to buy said product, stuffing it's dealer pipeline with unwanted product for political reasons to boost Manufacturing Output Numbers for the Administration, and then using the promise of government bailouts to get that same orgs financial arm to give credit to KNOWN CREDIT CRIMINALS to boost it's sales numbers for the very same political reasons.


Tue, 02/28/2012 - 17:12 | 2205549 JW n FL
JW n FL's picture



"An instant replay of these past few decades would have shown that accelerating asset prices were not due to any particular wisdom in the part of academia or the investment community but an offensively minded Federal Reserve and their global counterparts who were printing money, lowering yields and bringing forward a false sense of monetary wealth that was dependent on perpetual motion

Open Market Operations! BITCHEZ!!

Tue, 02/28/2012 - 16:54 | 2205519 Bangin7GramRocks
Bangin7GramRocks's picture

Well said.

Tue, 02/28/2012 - 21:18 | 2206379 Hard1
Hard1's picture

All I can say is sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable sustainable

Tue, 02/28/2012 - 16:59 | 2205534 Dr. Engali
Dr. Engali's picture

I agree with a lot of what you said. Apple is upsetting the whole apple cart (pun intended) but there was another company in the 80's and 90's who upset the system and became the one game in town. People used to wait in line for it's new operating system too. That company was Microsoft. If you look at it's stock run up it was a lot like Apple. Eventually once the hot money left it was cut in half and hasn't done anything since. I love Apple products but it's stock will get creamed at some point as well.

Tue, 02/28/2012 - 17:02 | 2205560 Temporalist
Temporalist's picture

Olympus did themselves in and anyone that actually wants a camera doesn't buy a phone for one.

Tue, 02/28/2012 - 18:33 | 2205950 Race Car Driver
Race Car Driver's picture

I dunno, dude. My little Samsung phone has a whole lot of 3.2Mp camera functionality... just as good as any other general use digital camera. My digital Olympus collects dust because it's just not convenient to have to lug a phone and a camera around.

Soon we'll just have to tap the little apple logo on the chest of our uniform shirts and be able to do just about anything.

Tue, 02/28/2012 - 18:18 | 2205888 Race Car Driver
Race Car Driver's picture

> Apple is a Shiva: devourer of worlds.

+ Shiva!

Outstanding post.

Tue, 02/28/2012 - 16:44 | 2205441 I am a Man I am...
I am a Man I am Forty's picture

Right, sick and tired of ZH and RM bitching and moaning about apple.  The market cap is not excessive for how much they earn, not even close.

ZH has been wrong about apple and the iBubble headline is nonsense.  TD, do you understand how to evaluate what a company is worth??  You obviously don't, because if you did you would own apple and be making a shit ton of money like I am.

Tue, 02/28/2012 - 17:10 | 2205599 Midas
Midas's picture

Considering there is no dividend, when you say you are "making" money does that mean you are selling shares or writing covered calls?

Tue, 02/28/2012 - 17:49 | 2205755 earleflorida
earleflorida's picture

Question,... what happened to the almighty Mr. Softy [Microsoft] in 2003 when they issued their first-ever dividend [!!!] - 2:1 split, and a stock buyback?  Answer. MSFT became a commodity -- a no-growth enterprise. Unimaginably, just reinventing its "Shitless Monopoly on Licensed Software'! 

Where's it gone in a decade?

Now,... the "Apple-of-Your Eye's" is at that crossroad. Investors are now clamoring for a dividend pay-out annually, period! The obvious thing to do is a stock-split,... absolutely "NOT"[!] says the "BOD's"!

Today the almighty APPL closed at $535/share very close to the $600/ share target. That is,... we have approximately 10% of an upward move before it tops - or, until the assholes raise the current valuation.

Ain't gonna happen -- this fruit is spoiling on the tree as I write. All the upside is baked into this soon-to-be rotten apple pie.

Remember this,... once a dividend is announced, this 'Newtonian Sweet-Tart' will have lost its "Tangy", and will become the the breakfast of "HOG's" where your [I hope you are] familiar with the 'wise-old-wall-street-adage' -- "The Pigs get fed,... the Bulls get fed --- but the HOG's get Slaughtered!"


Tue, 02/28/2012 - 17:46 | 2205758 absente reo
absente reo's picture

Good for you.  ZH is a fine blog, one of if not the best but it takes a certain degree of intelligence to be able to be a regular reader but also to hold positions that are diametrically opposed to those advocated either explicitly or implicitly in this blog.  Of course, at times it pays to follow the ZH crowd, but at times it does not.  Caveat: the ZH position on gold and silver speaks for itself.

Tue, 02/28/2012 - 18:00 | 2205827 NeoRandian
NeoRandian's picture

The problem with Apple is that it learned nothing in business school. The responsibility of a company is to maximize value for its shareholders, not create products and services that customers actually want.

If Apple had paid attention to Jensen and Friedman, it wouldn't need to worry about being a bubble; it would be as overleveraged and insolvent as all of its peers and the central banks would have less to worry about. 

Wed, 02/29/2012 - 00:45 | 2206932 Andre
Andre's picture


"The responsibility of a company is to maximize value for its shareholders, not create products and services that customers actually want."

Well, since American business is doing so well these days, I would say the idea does not have a ringing endorsement from anybody but the business school types.

A monomaniacal pursuit of "shareholder value" in the markets and the courts has led to (IMO) a hollowed out economy that will, by destroying the market (customers) and the society and economic system supporting it, achieve the utter opposite of the stated goal. Value is a dodgy thing when there are few customers and no effective laws.


Tue, 02/28/2012 - 16:28 | 2205365 Thomas
Thomas's picture

It is the indexers putting disproportionate money into the top of the indices. It works in reverse too!

Tue, 02/28/2012 - 16:58 | 2205543 economics1996
economics1996's picture

That bitch is distracting from your thought process.

Tue, 02/28/2012 - 17:24 | 2205658 astroloungers
astroloungers's picture

I have a furry mean donkey, my donkey wears a straw hat with his ears sticking up out of the hat.

My donkey loves apples,my donkey does not know much about finance donkey will be pleased to know that most of the world is now made up of apple.

Tue, 02/28/2012 - 15:44 | 2205159 kaiserhoff
kaiserhoff's picture

Relax Tyler.  It's different this time;)

Tue, 02/28/2012 - 15:54 | 2205208 Buckaroo Banzai
Buckaroo Banzai's picture

I dunno. I would be more willing to call AAPL a bubble if the company would stop making so much g.d. money, or if any of their competitors (besides Samsung) actually made money.

Tue, 02/28/2012 - 16:04 | 2205260 GenX Investor
GenX Investor's picture

The algobot 3000's can only focus on so many presure points in the market.  We are all witness to the greatest game of prisoners delema in the history of man.  I just can't wait to see what price discovery will be when the sustainable turns to the unsustainable.  SPEC-TAK-U-LAAARRRR!!!!

Tue, 02/28/2012 - 16:49 | 2205488 mlbs
Tue, 02/28/2012 - 16:35 | 2205400 He_Who Carried ...
He_Who Carried The Sun's picture

That fruit is going to enjoy some hard landing, once it detaches from its tree...

Time to start shorting in about 6 months...

Tue, 02/28/2012 - 15:52 | 2205200 LasVegasDave
LasVegasDave's picture

Let them stand for delivery of all the gold and silver on the comex and distribute PMs to shareholders as a dividend

Tue, 02/28/2012 - 15:54 | 2205206 bdc63
bdc63's picture


Tue, 02/28/2012 - 15:56 | 2205219 MarcusLCrassus
MarcusLCrassus's picture

Except that Apples billions in cash is all stashed overseas where they can't get to it. If they want to access it they have to pay literally billions in taxes on it. 


So sure, on paper they have lots of cash, but is it even still there?  How many times has it already been rehypothecated by the banks in London and Hong Kong? 


That would be a real hoot to see Apple get MF Globalled. 

Tue, 02/28/2012 - 16:00 | 2205242 Unprepared
Unprepared's picture

Sir Isaac Newton would be proven right.

Tue, 02/28/2012 - 16:48 | 2205472 TarzanNe1
TarzanNe1's picture

You didn't happen to mean Sir iSaac Newton?

Tue, 02/28/2012 - 23:52 | 2206810 putaipan
putaipan's picture

whoa....nice triple entendre or inadvertantly deep quip given newton's

role in the establishment of the bank of england.

Tue, 02/28/2012 - 15:20 | 2205016 Osmium
Osmium's picture

Skip your meals?  Hell, skip your house payment and buy 2!!!

Tue, 02/28/2012 - 17:21 | 2205057 bdc63
bdc63's picture

what a silly comment ... everyone knows that American's stopped making their mortgage payments 2 years ago ...

Tue, 02/28/2012 - 21:22 | 2206392 Zero Govt
Zero Govt's picture

just after Greece then

..this Fuck-the-Bills Virus has gone international

Tue, 02/28/2012 - 15:32 | 2205088 knightowl77
knightowl77's picture

I'm buyen one....have been waiting and waiting....

Already have my food & bulets squared away....time for a little R & R

Tue, 02/28/2012 - 15:44 | 2205152 scatterbrains
scatterbrains's picture

I bought  10 of them..  Enterprize, Liberty and Goldrush. The Goldrush supposedly are good for up to 8 months cold storage.. oh wait you mean electronic gadgets ?

Tue, 02/28/2012 - 15:34 | 2205096 LouisDega
LouisDega's picture

Youre such a tease. How am i going to order an Ipad if i am dead?  Is there an iHeaven?

Tue, 02/28/2012 - 16:02 | 2205249 zebra
zebra's picture

New App to apply for food stamp will hit the AppStore soon.

it is called iStamp.

Tue, 02/28/2012 - 21:28 | 2206406 Zero Govt
Zero Govt's picture

Nope, JP Morgan has the commission on the Food Stamps App's neatly correlated with creating unemployment by financially raping American taxpayers, pensioners and debt-slave students

Great business model America has

Tue, 02/28/2012 - 15:37 | 2205117 fonestar
fonestar's picture


You have to wonder what Henry Ford or Howard Hughes would have to say if they saw what was left of the greatest manufacturing empire in history?  A bunch of useless dolts staring at themselves on Facebook all day and blocking out reality with the headphones attached to their iToy.


Tue, 02/28/2012 - 15:43 | 2205146 IEVI
IEVI's picture

At least Apple makes something. How about PCLN up $40 today. It's a fucking travel agency!


Tue, 02/28/2012 - 15:46 | 2205166 Michael
Michael's picture

Just like that donut company that crashed.

Tue, 02/28/2012 - 16:30 | 2205382 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Being in the travel business myself, I bought PCLN for $1 back in Jan03 when it hit bottom on bankruptcy fears. Finally sold the last of it in December. My retirement is SECURE, save a complete and utter collapse of the US dollar.

If the same amount I invested, at the same time, for the same price, in Midwest Express Airlines had worked out as well, I'd be typing this from my beachfront home in St. Thomas.

Tue, 02/28/2012 - 15:38 | 2205126 FL_Conservative
FL_Conservative's picture

Don't be the last one standing when the iTunes stop!

Tue, 02/28/2012 - 16:33 | 2205394 NotApplicable
NotApplicable's picture


ALL of the chairs are gone!

Tue, 02/28/2012 - 15:32 | 2205089 battle axe
battle axe's picture

The run up before the big explosion, and apple goes down, the cult of personality usually does not do well, when the god like figure dies....

Tue, 02/28/2012 - 15:42 | 2205142 slaughterer
slaughterer's picture

Name one hedge fund that is going to sell AAPL before the IPad 3 announcement.  <crickets>

Tue, 02/28/2012 - 16:35 | 2205397 NotApplicable
NotApplicable's picture

Which is why it could be soooooo epic.

Tue, 02/28/2012 - 16:00 | 2205243 JennaChick
JennaChick's picture

These guys are saying that we should all be selling crude oil calls short:

Tue, 02/28/2012 - 16:18 | 2205315 WhiteNight123129
WhiteNight123129's picture


The Yuan is not pegged to the USD. It is the USD which is pegged to the Yuan. Given that the currency has way more use against soft and hard commodities and that the tradable goods sector is higher in China than in the US and given that China supports the USD by holdings its treasuries, it follows that if China were to float the Yuan, the USD would fall like a stone. Yes GDP is higher in the US, but it includes Lawyers lawsuits, dog walkers, consumer credit companies, mortgage servicers, homes, all fake economics.





Tue, 02/28/2012 - 16:37 | 2205406 NotApplicable
NotApplicable's picture

Hey now, let's not toss the baby out with the bath water. Dog walkers are an important contributor to GDP.

Tue, 02/28/2012 - 23:55 | 2206821 putaipan
putaipan's picture

i read somewhere and it was quoted a lot that if the iphone was made

with american labor it would have only been about 50$ more...

Tue, 02/28/2012 - 15:15 | 2204977 Cognitive Dissonance
Cognitive Dissonance's picture

iApple always does things iBig


Tue, 02/28/2012 - 15:16 | 2204985 redpill
redpill's picture

New stock market trading tool coming out, it's called the iShort

Tue, 02/28/2012 - 15:27 | 2205061 peekcrackers
peekcrackers's picture

and for the Bros working a wall street Isnort

new blow apt

Tue, 02/28/2012 - 15:30 | 2205083 iraskin
iraskin's picture

Really curious how you base your judgement. I am down $100K  on this trade, but I agree with you, however was curious on your logic because the technicals are very very bullish on it.


Tue, 02/28/2012 - 15:40 | 2205134 harmonymonkey
harmonymonkey's picture

Soon it will be "how you judge your basement"!

Tue, 02/28/2012 - 21:27 | 2206408 UP Forester
UP Forester's picture

Let me invest your money for you.

Just give me your next $100K, and I will give you a pretty printed piece of paper saying that you did.

The end.

Tue, 02/28/2012 - 15:38 | 2205085 JW n FL
JW n FL's picture




New stock market trading tool coming out, it's called the iShort


You can barrow some of my Been Short.. if need be!

thats what family is all about! sharing!


and check this out.. this guy is a lil fruit loop for stuff sometimes but this time.. he has some reall good info to share.. all the way thru.. suffer thru it.. trust me.


Plus something fun!


even more fun! PLUS!

Travis as well can make your Glock shoot like a 1911! well the trigger feel any way!

Tue, 02/28/2012 - 15:52 | 2205203 infinity8
infinity8's picture


Wed, 02/29/2012 - 00:51 | 2206943 Andre
Tue, 02/28/2012 - 15:39 | 2205130 williambanzai7
williambanzai7's picture

This may be a bit frothy, but let me remind everyone that the business model of this company is not based on strip mining your privacy or skimming off your wealth.

Tue, 02/28/2012 - 15:50 | 2205194 Dr. Engali
Dr. Engali's picture

I don't think it's the business model that's the issue. It's the fact that "money managers" all only have one Apple.

Tue, 02/28/2012 - 15:55 | 2205213 RopeADope
RopeADope's picture

This is true, rather the business model of this company seems to be loosely based on drugs(addiction), sex(gratification) and slavery(exploitation). With a business model like this a multi-trillion market cap does not seem out of reach does it?

Tue, 02/28/2012 - 15:58 | 2205220 Cognitive Dissonance
Cognitive Dissonance's picture


You may remember Banzai7 that you converted me to the iPhone 4, urging me to purchase it when I told you I needed a smart phone. So I am now somewhat familiar with that part of the product line. And despite some shortcomings (mostly Verizon, not Apple) I am still as smitten by it today as I was over a year ago. is too expensive and the iGadget accessories are even more expensive. Other than that....... :>) 

I will say this. Several times I have been with others who were struggling with their latest smart phone by various manufacturers. I will quietly hand them my iPhone4 and tell them to try it. They are quickly amazed with all that it does and how user friendly it is. That is worth a lot of Bernanke Bucks in my book.

Tue, 02/28/2012 - 16:08 | 2205275 Buckaroo Banzai
Buckaroo Banzai's picture

Agree. iPhone 4S is nothing short of amazing.

Before the iPhone I had a Blackberry. My experience with Blackberry was, I really liked it at first, and then the more I used it, the more annoyed/unhappy I became. Unpredictable behavior, buggy, needed a battery pull every few days, and an overall user experience that was generally good but frequently short of completely satisfying.

When I switched to iPhone, I found IOS a little offputting at first. Then the more I used it, the more I realized how awesome it was. I have never been disappointed with it, it is always one step ahead of me and always anticipating what I need. No bugs whatsoever, everything works all the time. Really amazing.

Can't imagine switching to anything else.

Tue, 02/28/2012 - 16:16 | 2205310 slaughterer
slaughterer's picture

Could I ask you two a question:

will you be buying the iPhone 5 when it comes out, or will you just hang on to your 4/4S?

Tue, 02/28/2012 - 16:29 | 2205375 Buckaroo Banzai
Buckaroo Banzai's picture

If I decide to dump Sprint for AT&T, then I'll buy the iPhone 5. If I keep Sprint, then probably stick with iPhone 4S. Unless there is some super-compelling new feature set in the iPhone 5.

What Sprint doesn't tell you about their "unlimited data plan" is that they deliver that "unlimited data" through either a drinking straw (3G) or a syringe (2G).

All the data you want, as long as you are willing to wait all day.

Tue, 02/28/2012 - 17:09 | 2205555 Cognitive Dissonance
Cognitive Dissonance's picture

I have the Verizon iPhone 4 (not the 4s) so I will upgrade when they come out with the 5 primarily because of the promised 4G speed and I'm certain even more whistles and bells than the 'plain' 4 that I have.

I will also stay with Verizon because Verizon has good coverage out here in the sticks, something AT&T and others can't compete with. I hate dropped calls and/or no internet access even worse than I hate ZH trolls. :>) 

And Buckaroo, I bought the Verizon iPhone4 as a pre-sale to existing customers before it was released to the general public. So I got the true Verizon unlimited internet bandwidth plan. There is no throttling that I can detect and I am always over their internal trigger where they supposedly limit their other customers just like Sprint does.

If they are throttling me I can't tell.

Quick true story. I visited a Verizon Wireless store the other day with a friend who needed something. While I was waiting I had the pleasure of setting many of the Smart phones on display to bring up by default. I walked out feeling very pleased with myself. :>)

Tue, 02/28/2012 - 18:31 | 2205939 DavidC
DavidC's picture

That story is brilliant, made me laugh!

I had an overfamiliar young buck phone me unsolicited at home today trying to sell me carbon credits. By the time I'd finished with him, he'd quietened down a lot and he was going to take a look at ZeroHedge immediately after his (unsuccessful!) call.


Tue, 02/28/2012 - 16:02 | 2205252 Conrad Murray
Conrad Murray's picture

"This may be a bit frothy, but let me remind everyone that the business model of this company is not based on strip mining your privacy or skimming off your wealth."

Carrier IQ? $600 for a $300 tablet?

Tue, 02/28/2012 - 16:40 | 2205425 NotApplicable
NotApplicable's picture

"This may be a bit frothy, but let me remind everyone that the business model of this company is not based on strip mining your privacy or skimming off your wealth."

So sayeth the man who substitutes beliefs for first-hand knowledge.

Tue, 02/28/2012 - 23:58 | 2206829 putaipan
putaipan's picture

heh heh ... he said "frothy". heh. "shart" . .... santorum.  heh heh

Tue, 02/28/2012 - 15:15 | 2204978 Dr. Engali
Dr. Engali's picture

Completely sustainable.

Tue, 02/28/2012 - 15:18 | 2205010 GeneMarchbanks
GeneMarchbanks's picture

iFart in their general direction.

Tue, 02/28/2012 - 21:47 | 2206458 Zero Govt
Zero Govt's picture

go on boys be brave, back up the bravado, short Apple can join Reggie in the iCrumble (graveyard)

Tue, 02/28/2012 - 15:16 | 2204983 Uchtdorf
Uchtdorf's picture


Tue, 02/28/2012 - 15:16 | 2204986 Timmay
Timmay's picture

Government subsidized Ipad purchases for consumers because it is "Too big to fail" in 3, 2, 1 .....

Tue, 02/28/2012 - 15:34 | 2205100 knightowl77
knightowl77's picture

Free iPads for everyone on welfare because dammit it's a right...just like the free cellphones

Tue, 02/28/2012 - 16:26 | 2205362 WillyGroper
WillyGroper's picture

Oh for Pete's sake. The free cellphones are nothing but an earmark of our tax dollars for the telco's.

Tue, 02/28/2012 - 15:16 | 2204987 firstdivision
firstdivision's picture

LOL!  When Apple bursts, it'll be epic that is for sure.  When most mutual funds/401K's are tied up in it, that is when it'll end.

Tue, 02/28/2012 - 15:23 | 2205039 hedgeless_horseman
hedgeless_horseman's picture



How does the axiom go?  Buy high, sell low?

Tue, 02/28/2012 - 15:17 | 2204991 daneskold
daneskold's picture

Tyler, short it!  Short it!

Tue, 02/28/2012 - 15:17 | 2204994 laomei
laomei's picture

masses of drooling idiots grasping to a status symbol they can almost afford that has to be renewed twice a year and is basically pure profit helps too.

Tue, 02/28/2012 - 15:17 | 2204998 The trend is yo...
The trend is your friend's picture

I said jokingly at 470 that at the current pace Apple will be a trillion market cap by the end of he year.  My projections were off.  It'll be in the 3rd quarter

Tue, 02/28/2012 - 15:19 | 2205014 The trend is yo...
The trend is your friend's picture

The last tech stock with this market cap was Cisco at the peak of the tech did that one end?

Tue, 02/28/2012 - 15:24 | 2205054 hellas4life
hellas4life's picture

csco didn't have 100 bln in cash nor was it trading at 10 times earnings.  at it's peak it had a p/e of 130. 

Tue, 02/28/2012 - 16:44 | 2205448 NotApplicable
NotApplicable's picture

Maybe not a $110B, but they had enough cayash* to loan it to their customers, which of course, is about the last thing you would want to do with it. I bet Apple will start up their very own corp. finance division someday in order to maintain growth.

*Chambers speak

Tue, 02/28/2012 - 16:49 | 2205487 The trend is yo...
The trend is your friend's picture

You are correct however Apple's customer base are retail, whereas cisco's was corporate.  Who is currently flush with cash? Corparate or retail. 

Tue, 02/28/2012 - 17:12 | 2205602 hellas4life
hellas4life's picture

good point.  they are making inroads into the corporate market however and have a lot of mkt share to gain there


Wed, 02/29/2012 - 00:06 | 2206855 laomei
laomei's picture

The difference is that it has become an "obtainable status symbol", if you understand the meaning of that.


Once a new one comes out, if you don't snatch it up asap, you are left holding "the old one".  Old models are routinely sold off as second hand and it's "the poors" who buy them up.  You don't want to be a poor now do you?  Surely you can afford a few hundred bucks so that for the next 6 months you can whip out your class status verification item in public and let all those around you know "i am not poor".


You get a very interesting dynamic over here in China of who actually buys this crap.  It sure as hell ain't business or anyone with money.  We stick to practical phones.  A good droid for a smartphone and a very very basic nokia as a secondary that keeps battery life forever..  The people buying apple crap are generally on the low rung.  Starting at around 5000+ RMB a month, they will gladly piss away an entire month's wages (or more) to obtain their precious status symbol.  So they can whip it out in public and be annoying.... New model comes out? Be sure to let everyone know you sold the old phone for 500 kuai and you have the new one.  Make it perfectly clear that the old one is garbage for poor people.

Housing is too expensive to most people to have as that face-giving status symbol.  Cars are too prevalent and really nice ones are way too expensive for most.  LV bags are pricey and there are too many fakes.  Basically this is the new "look how much money I am able to waste on stupid shit, I'm not poor".  And anyone who actually has money doesn't care.  It goes hand in hand with expensive bottles of maotai and zhonghua... and that's it. It's stupid.  It's not even a good phone compared to what's on the market for far less... ditto goes with the ipad... which has yet to have any damned purpose at all worthwhile.  It's pretty funny to watch all the mouthbreathing idiots flock to this consumer crap, especially when they really can't afford it.

Tue, 02/28/2012 - 15:21 | 2205002 Cdad
Cdad's picture

Thank you Tyler...and nice timing as J. "the top tick" Teranova capitulates on his AAPL short...about one hour ago.   This one will rival his top tick call to buy JCP on a day when the stock was up 18% on the session because of the announcement that Ron Johnson of AAPL was joining JCP.  Of course, the stock almost immediatly collapsed.

You just have to love J. Teranova as a permanent consensus, tick chasing idiot.

Tue, 02/28/2012 - 15:22 | 2205031 Squid Vicious
Squid Vicious's picture

I'll always remember his "you gotta be long RIMM here" call at $83... maybe he's related to momotarder?

Tue, 02/28/2012 - 15:46 | 2205170 El Hosel
El Hosel's picture

....   AKA Eddie Munster

Tue, 02/28/2012 - 15:18 | 2205006 Sophist Economicus
Sophist Economicus's picture


Tue, 02/28/2012 - 15:19 | 2205009 MacAttack2
MacAttack2's picture

I'll sell when the market cap equals the cap of teh S&P 500!  Doh!

Tue, 02/28/2012 - 15:20 | 2205017 orangedrinkandchips
orangedrinkandchips's picture

sustainable....enough said

Tue, 02/28/2012 - 18:33 | 2205951 DavidC
DavidC's picture

Doubtful...enough said.


Tue, 02/28/2012 - 15:21 | 2205022 Moneyswirth
Moneyswirth's picture


Tue, 02/28/2012 - 15:21 | 2205028 lasvegaspersona
lasvegaspersona's picture

We are all Apple now.....chant

Tue, 02/28/2012 - 15:23 | 2205032 JohnKozac
JohnKozac's picture

Will Iran accept used iPads for oil?  Seems like every 16 year old has 2 or 3 of them in his back pocket.

Tue, 02/28/2012 - 15:22 | 2205034 Gubbmint Cheese
Gubbmint Cheese's picture


Tue, 02/28/2012 - 15:22 | 2205035 orangedrinkandchips
orangedrinkandchips's picture


Tue, 02/28/2012 - 15:22 | 2205037 Seize Mars
Seize Mars's picture


Tue, 02/28/2012 - 15:23 | 2205041 Moneyswirth
Moneyswirth's picture

March will indeed be a month of action and excitement----iPad 3, war in the Middle East, colonization of Europe, collapse of the US economy....

Fun times!

Tue, 02/28/2012 - 15:47 | 2205177 zx12r
zx12r's picture

In America, as long as their Iphones keep working, no one will notice.

Tue, 02/28/2012 - 15:24 | 2205043 Gringo Viejo
Gringo Viejo's picture

America's greatest enterprise.....a toy company. Somehow appropriate.

Tue, 02/28/2012 - 15:24 | 2205045 carbonmutant
carbonmutant's picture

Could Apple do a better job than the FED?

Tue, 02/28/2012 - 15:28 | 2205072 Moneyswirth
Moneyswirth's picture

Well, AAPL has created more wealth than the Fed.  Thats a start I guess...

Tue, 02/28/2012 - 15:24 | 2205046 max2205
max2205's picture


Tue, 02/28/2012 - 15:24 | 2205048 q99x2
q99x2's picture

The biggest Apple is the one that is TBTF.

If you don't own Apple products (1 each) you will be placed on the FBI's suspected terrorist list.

Tue, 02/28/2012 - 15:28 | 2205071 mind_imminst
mind_imminst's picture

Great comment. Apple IS becoming so big and so key to the market that there is probably some idiot bureaucrat that is thinking about putting  them in the TBTF government protection plan. If the iBubble pops, a whole lot of markets are going down fast.

Tue, 02/28/2012 - 16:46 | 2205465 NotApplicable
NotApplicable's picture

Someday, every government worker will have an iPad to connect to their Google workspace.

Tue, 02/28/2012 - 15:38 | 2205049 Mercury
Mercury's picture

Probably is bigger than Retail ex-Apple related products.

World GDP / $533AAPL + (-1 Steve Jobs) = short

Tue, 02/28/2012 - 15:27 | 2205062 HD
HD's picture

Oh Wow, Oh Wow, Oh Wow

Tue, 02/28/2012 - 15:27 | 2205063 css1971
css1971's picture

Proof that Keynsian economics works. People clearly are eating iPad.

Tue, 02/28/2012 - 15:35 | 2205103 Diet Coke and F...
Diet Coke and Floozies's picture

I'm soooo hungry... Now I know why!

Tue, 02/28/2012 - 15:40 | 2205135 LouisDega
LouisDega's picture

I tried that once. Its an over rated experience. 

Tue, 02/28/2012 - 15:27 | 2205064 Mongo
Mongo's picture

What if apple really tasted like bubble, how would the machines really know the difference?

Tue, 02/28/2012 - 15:32 | 2205093 iraskin
iraskin's picture

everybody who hates apple is an icocksucker


Tue, 02/28/2012 - 15:34 | 2205098 Diet Coke and F...
Diet Coke and Floozies's picture

ipop the ibubble...

Tue, 02/28/2012 - 15:35 | 2205106 Temporalist
Temporalist's picture

Why is everyone complaining? Now that people can't afford gas they can get that iPad they've been dying slowly for to distract them from reality.

Tue, 02/28/2012 - 15:35 | 2205109 kralizec
kralizec's picture

iSpy with my little i

Tue, 02/28/2012 - 15:37 | 2205121 Diet Coke and F...
Diet Coke and Floozies's picture

Something that isn't sustainable?

Tue, 02/28/2012 - 15:55 | 2205217 kralizec
kralizec's picture

Aye.  There's a lot of that going around.

Tue, 02/28/2012 - 15:37 | 2205119 j0nx
j0nx's picture

Amazing what you can do with an army of cheap slave labor manufacturing your goods.

Tue, 02/28/2012 - 15:38 | 2205123 Deep79
Deep79's picture

What's the common thread? All of these traders are tethered to the housing recovery, which Kass believes is about to get underway. (ETrade has a large home equity loan portfolio, says Kass)

“I do think we’re facing a lengthy and durable recovery in the housing market and the possibility exists that it lasts for the balance of the decade.

Although Kass concedes the sector still faces headwinds, he believes ultimately one factor trumps all others -- mortgage rates are very, very low. 

Kass thinks that as the economy recovers people just won’t be able to resist the temptation of moving into a new house – “interest rates are at the lowest they’ve been in several generations,” he says. 

In other words, buying a home will become a smart use of capital.



Tyler, Kass said this, you gotta put this on file

Tue, 02/28/2012 - 15:46 | 2205161 haskelslocal
haskelslocal's picture

Do you know what the equivilent of bulldozing 5M houses equates to? Simply fund the banks to REPO homes outright and keep the "overhang" off the market in perpetuity.

Since deflation of the buble necessitiates balance of inventory, if one doesn't remove supply one must only hoard it, destroy it or render it obsolesent.

This, coupled with favorable tax laws, wakens the recovery when those busy looking for truths are caught off gaurd. (Which they must be in order to game the system.) 

Tue, 02/28/2012 - 16:52 | 2205505 NotApplicable
NotApplicable's picture

BTW, urban "blight" is starting to come back into vogue. A city nearby recently classified over half of its entire area as blighted, allegedly in order to obtain federal block grants. Funny thing though, the truly blighted areas are the ones they blighted and dozed in the 70's to create the projects.

Tue, 02/28/2012 - 15:40 | 2205133 haskelslocal
haskelslocal's picture

Looking back to 2007 and comparing the trends, this either means:

a) semi-conductor sector is 4x under valuded here.

b) Apple is 4x over valued

c) A combination of both.

Using this logic, either Apple crashes or Semi-conductor sector sees a modest increase that makes sense of The Apple ascent.

Using slight of hand and to "sustain" the illusion, it's patern recognition time. Go with the Semi-Sector completing the cycle.


Tue, 02/28/2012 - 15:42 | 2205144 YesWeKahn
YesWeKahn's picture

USA is apple. Apple is USA. Get it?

Tue, 02/28/2012 - 15:42 | 2205145 Shizzmoney
Shizzmoney's picture

Jim Cramer says Domino's Pizza (dpz) is a tech stock because they have an Apple app LOL

Tue, 02/28/2012 - 15:43 | 2205148 monopoly
monopoly's picture

Ya know I love AAPL. I love their products and have been using them for over 20 years. A well run machine is AAPL. And kudos to all they do.....But this is ridiculous. No company is worth such a valuation and at some point what a short. I do not touch it.

Then of course their is CMG, look at their 2 year chart and laugh. Just Burritos, that's all. Talk about a total farce.

At least AAPL has more than one product. It will all be righted, of that I have no doubt, but first we must reelect our king and his knaves. Then, it will all come together.

This market makes Capone and his Mafia look like amateurs. 

Tue, 02/28/2012 - 16:56 | 2205531 NotApplicable
NotApplicable's picture

But those are ethical burritos, man!

Ethical behavior doesn't come cheap, you know.

Tue, 02/28/2012 - 15:44 | 2205158 iraskin
iraskin's picture

I mean it's just getting out of whack. This company has a broken stock between $420 and $430 but it acts as if nothing really matters. We all know apple is not growing from anymore. And believe when I say that, I tried to patent the name Iphone in 2005, yet found out that Cisco owned it, and years later Isteve stole it. How do we bring it down guys back to reality? I never had an Ipod cuz I knew it was just Sony headphones with Toshiba Harddrive based on idea stolen from Creative. The app store concept was stolen from facebook, and the phone itself was on the shelf for years by HTC. He was a packaging spinoff thief, may he RIP. However, lets bring the planet to reality from icock sucking of cheapest parts to confuse people that they have to live in Ibubble when the basic thing as Itunes doesn't cut the bar anymore setup by Sony musich alliance with Google. The Ecockosystem is not gonna work. I have a 6 sense for all of this.  Yes he accelerated our dream, but now it's a major major slow down for the population that's turning zombie because it is not open source, and it only works if even the service providers suck on on it. It's a very big squeeze, time to rebel this shit.


Tue, 02/28/2012 - 15:45 | 2205162 juggalo1
juggalo1's picture

Put your money where your mouth is.  Short the sucker, and make a fortune or STFU.

Tue, 02/28/2012 - 15:45 | 2205164 marcusfenix
marcusfenix's picture

will there be an app for the icollapse?

Tue, 02/28/2012 - 15:48 | 2205179 iraskin
iraskin's picture

Apple is priced on a curve that simply makes AT&T & Verizon tools rather than profit makers, and it posts their margins. It takes a maniac to get there, but it is what it is I guess for now, until AT&T & Verizon stop on sucking Icock.

Tue, 02/28/2012 - 15:48 | 2205180 iraskin
iraskin's picture

Apple is priced on a curve that simply makes AT&T & Verizon tools rather than profit makers, and it posts their margins. It takes a maniac to get there, but it is what it is I guess for now, until AT&T & Verizon stop on sucking Icock.

Tue, 02/28/2012 - 15:48 | 2205181 Jena
Jena's picture

I don't know what I'm missing.

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