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Apple Milestone: $400B Market Cap – Sign of Top?


Apple briefly traded above the $400 billion market cap for the first time ever on Wednesday. Is the milestone an unofficial sign of the top?

Looking at the numbers, Apple traded as high as $429.47 on Wednesday, valuing the company’s market cap at $400,328,313,150 for the first time ever.

However easy come easy go.

At the close, shares of Apple settled at $429.11, which equates to a market cap of $399,992,740,950 (about $7.3 million below the $400 billion mark).

Those are a lot of numbers – and it’s easy to get confused.

First, that doesn’t make Apple the most valuable company in the world -- at the time of writing Exxon held that distinction with a market cap of $410B.

Also, Apple has been the most valuable company in the world before, it achieved that distinction in August 2011 – when it briefly passed Exxon. Back then both were trading around $350B

Nonetheless, the milestone had the Street chattering. Is this milestone the beginning of the end?

Why Apple's $400B Milestone Could Be Bad News

Strategy Session with the Fast Money traders

“I own it here but I’ve sold upside calls against it,” reveals trader Karen Finerman. “I’m worried about the law of larger numbers,” she admits.

In other words, eventually she thinks the company will get so big it will become nearly impossible to move the needle.

But at current levels she remains a buyer. “I like the stock and the valuation I don’t think it’s expensive, yet.”

Fast pro Jon Najarian agrees. And he sees plenty of catalysts to drive growth for some time to come. Among the many catalysts he cites is the new iPad 3. “That’s a March event, and it could provide the market with new wow.”

Trader Tim Seymour agrees. He points to growth in chip makers that supply to Apple. “It tells me there’s a lot more to go here.”


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Trader disclosure: On Jan 18, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders Terranova is long V; Terranova is long CSCO; Terranova is long TRLG; Terranova is long JNPR; Terranova is long DECK; Terranova is long NFLX; Terranova is long XOM; Terranova is long SBUX; Terranova is long AXP; Terranova is long EMC; Terranova is long MUB; Terranova is long IBM; Terranova is long UNG April $5 puts; Finerman owns AAPL; Finerman owns BAC; Finerman owns JPM; Finerman owns IBM; Finerman owns MSFT; Najarian is long AAPL; Najarian is long GS; Najarian is long LLTC; Najarian is long KBH; Najarian is long CQB; Najarian is long EMC; Najarian is long CREE; Najarian is long FCX

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TRANSCANADA (TRP): BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months.
This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services.
BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of this issuer.

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Benchmark makes a market in the securities of Amazon (AMZN)

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Stutland Equities holds hedged positions in VIX futures and options.
Stutland is long and short calls in AAPL
Stutland is long and short calls in INTC
Stutland is long and short calls in IBM
Stutland is short TLT puts with wires.