NEW YORK (TheStreet) -- It always amazes me to see that whenever tech giant Apple (AAPL) comes up, analysts go out of their way to "one-up" each other in describing the company. It is as if there are yet things that can be said about the company's success that has not already been said. That in and of itself demonstrates just how popular the company is -- and how through its words or image Apple systematically does things that makes one question his or her own ability to rationalize.The company has become not only the anchor of the stock market, but the beacon of innovation for the world. (How's that for my own "one-upping" attempt?) That it has surpassed Exxon Mobil ( XOM) as the world's largest company -- to the extent that it is now larger than Microsoft ( MSFT), Cisco ( CSCO) and Intel ( INTC) combined -- leads to the other popular component of any discussion that involves Apple: Its valuation. This is something many investors still do not fully understand. It seems the biggest source of disconnect, continuing due to a lack of appreciation between the difference of price and value.
|Despite operating in a cut-throat industry, there are no meaningful signs Apple is slowing down.|
Despite the fact that the company operates in a cut-throat industry where everyone including Samsung is trying to take away its business, there are no meaningful signs the company is slowing down. This is even despite having even the most overly optimistic earnings estimates on Wall Street. Without question, the company's growth rate has been nothing short of phenomenal. The question is, where is it heading? There is no doubt its next target is $1,000 per share -- something I expect within the next 24 to 36 months. So when discussing its valuation today, investors have to realize there is no such thing as expensive. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.