Investing.com - The debate is on about how much upside room there is for (NASDAQ:Apple) after it became the first U.S. firm to achieve a market capitalization of $800 billion.
Apple’s market cap at Tuesday’s close stood at $802.88 billion after hitting the $700 billion mark just slightly more than two years ago.
The stock has risen 30% since the start of the year, closing just shy of $154 on Tuesday. The median price target for the stocks stands at $160, up from $140 a year ago.
Analysts upbeat on the stock point to Apple’s very strong customer loyalty, high-margin policy and capacity for further innovation.
Sales of its flagship iPhone device disappointed in the latest quarter but Chief Executive Tim Cook attributed this to customers waiting for the latest update.
The next key development in this respect is expected to be the release of the iPhone 8 in the fall.
Warren Buffet’s Berkshire Hathaway (NYSE:BRKa) fund recently unveiled it had increased its stake in the U.S. tech giant to around $20 billion.
Buffett earlier this week described the iPhone as a “very, very valuable product.”
Analyst also point to Apple’s huge cash pile. This could be swelled by repatriation of profits held overseas if the Trump administration proceeds with plans for incentives to do so.
This could be used to fund acquisitions should the right opportunities present themselves or to boost share buybacks.
However, some analysts point to the fact Apple is trading well above its 40-week moving average, which could be an invitation for a period of consolidation.