Again, the ability of Apple to continue its march higher was called into question, after two high profile reports raised concerns about the company’s enormous market cap.
A report in the New York Times says, “Here is the rub: Apple is so big, it’s running up against the law of large numbers.
The Times went on to cite a mathematical theory from 17th-century Swiss mathematician Jacob Bernoulli and translated it into modern day. Says the Times, “In the case of the largest companies, it suggests that high earnings growth and a rapid rise in share price will slow as those companies grow ever larger."
Meanwhile, the Wall Street Journal also talked about Apple’s market cap - they say it's becoming a problem for the market broadly. The Journal goes on to say that the iPad maker'ssize is so problematic that some analysts are factoring it out, completely.
“Earlier this month, Jonathan Golub, the chief U.S. equity strategy at UBS AG, caused a stir among his clients by publishing two versions of his regular quarterly earnings update: one for the companies that make up the S&P 500, and another for what he calls "S&P 500 ex-Apple," says the Journal.
As two of the nation's most respected periodicals turn a spotlight on Apple's market cap - investors have started to fear that Apple has gotten too big.
After all, at over $500/share a block of 100 shares costs more than $50,000. That's no small chunk of change for many retail investors.
