Apple was attempting to extend its drive towards an unprecedented milestone of a market value of $2 trillion while surpassing another Wall Street record set some forty years ago.
Apple's overall weight on the S&P 500, the broadest measure of U.S. shares prices, reached 6.5% this month, topping the 6.4% peak set by International Business Machines in 1985.
Apple shares have gained around 49.4% so far this year, and, along with Big Tech brethren Microsoft, Amazon, Alphabet, and Facebook, comprise around 38% of the Nasdaq 100.
Apple is also closing in on the first $2 trillion valuations in market history following last week's blowout third-quarter earnings, which included a 26% rise in over profits and a 13.4% gain in total sales, which came in just under $60 billion.
Apple also got a downgrade from Bank of America analyst Wamsi Mohan downgraded the stock from buy to neutral based largely on his concern about valuation.
He raised his share-price target to $470 from $420, however, reflecting the stock’s recent ascent.
Mohan made the downgrade because “we view risk-reward as more balanced at these levels,” he wrote in a commentary.
On the plus side, Apple’s product cycle is now less important, it has a loyal user base, its installed base is still growing, the penetration of its services remains low and it has strong free cash flow, Mohan wrote.
So what does Jim Cramer think?
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