|Source: DataStream, Brewin Dolphin. Past performance is not a guide to future performance.|
Following Apple’s forecast beating results last night I recall reading an interesting observation from my colleague, Rob Crawshaw. While reviewing the US equity market’s 1st quarter of 2012 he noted that Apple, which rose 48% over the quarter, has seen its value as a company (its market capitalisation to use the appropriate nomenclature) rise by $200bn.
As is so often the way in the modern age, comprehending such mammoth numbers is difficult so Rob points out that the 1st quarter rise is equivalent to the addition of “a Wal Mart” (the supermarket chain that operates 8,500 stores under brands including Asda).
This morning, however, our dealers inform us that Apple will likely open 8% higher this afternoon after last night’s expectation thrashing after-hours results. To put that in context that’s a $42 billion increase in Apple’s market value - equivalent to a whole new Ford Motor, and pretty close to a new News Corp (perish the thought)!
All in all a pretty meaningful daily move.
Head of Portfolio Strategy