AAPL -- December 10, 2021

Without question, the biggest story of the day for me, was AAPL.

Consider checking out the "AAPL feed" on twitter.

At the close, AAPL market cap: $2.944 trillion.

AAPL closed at $179.45, up $4.89, up 2.80% and held the gain after hours.

To get to a $3-trillion-market cap, AAPL shares need to get to slightly less than $183 / share.

MSFT: market cap at $2.572 trillion. 

Five reasons to buy AAPL; one reason to sell. Motley Fool. 

Most interesting:

Apple already trades at 30 times forward earnings. That's a very high price-to-earnings ratio for a company that is expected to grow its revenue and earnings by 4% and 2%, respectively, this year. Next year, analysts expect its revenue and earnings to grow just 4% and 7%, respectively.

Could someone remind me the P/E of Tesla? Oh, there it is, thank you: 330. 

But back to this, revenue and earnings growth:

• 2021: 4%; 2%
• 2022: 4%; 7%

If your revenue growth rate is flat, but your earnings (profit) rate more than triples, wouldn't that suggest margins are increasing? Or the company expenses, taxes, yada, yada, yada.

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Santa Claus Rally

To continue through end of the year and into January, 2022. Writer argues that the semiconductor sector is the true indicator of the US economy. I can't disagree. 

US household wealth: at an all-time record high -- $144.7 trillion. Link here. It's an interesting article. Most noteworthy: the value of equities held by households and nonprofits fell by $300 billion -- this was back in the third quarter, July - September, 2021. It will be interesting to see the 4Q21 number. 

Much more data and analysis at ZeroHedge. 

One of the interesting data points: household debt at $17.6 trillion. One would expect that number to increase with increasing price of homes, used cars, new cars, EV (particularly), higher education. 

Also, unsaid, the length of loans. All things being equal, wouldn't longer periods for loans increase overall debt? Could be wrong on that.