Will Apple stock reach $700 again?
You might remember a time, not too long ago, when Apple’s stock was climbing toward an incredible $700 a share. It was the talk of the financial world and a constant feature in news headlines. So, it’s natural to look at today’s price and wonder: will Apple stock reach $700 again?
The short answer is yes, but it would have to happen in a very different way than you think. Because of changes Apple has made over the years, for the company to reach that same symbolic value today, the price for a single share would actually need to hit a staggering $2,800.
This massive difference isn’t because the company is struggling; in fact, it’s worth trillions more than it was back then. The gap is explained by a common financial event that works like a magic trick: the stock split.
The concept of the stock split is the key to unlocking the real story behind AAPL’s price. It reveals why a lower share price can mean the company is stronger than ever before.
The “Pizza Slice” Magic Trick: Why You Can’t Compare Today’s AAPL Price to the Past
When you see a current stock price that’s much lower than a past high, it’s easy to think the company has lost value. But the real story is much more interesting and involves a bit of financial magic called a “stock split.”
Imagine you own a single, large slice of pizza worth $20. A stock split is like the chef cutting your slice into four smaller, equal pieces. You still have the same total amount of pizza, but now you have four slices, each worth $5. The total value hasn’t changed, just the price per slice. Companies do this to make their stock more affordable for more people to buy.
Apple has done this several times, most recently in 2020 when it performed a 4-for-1 split. This means for every one share of AAPL stock an investor owned, they suddenly had four. Before that, it did a massive 7-for-1 split in 2014. The company’s value didn’t shrink; the number of shares just multiplied, making the price of each individual share lower.
So, what would that legendary $700 price look like today after those splits? Accounting for both the 7-for-1 and 4-for-1 splits, that old $700 share is equivalent to just $25 per share in today’s terms ($700 ÷ 7 ÷ 4). This calculation is crucial: the price tag from the past simply isn’t comparable.
Forget the Price Tag, What’s the Whole Company Worth?
Since the stock price alone can be misleading after splits, focusing on it is like trying to judge the size of an entire pizza by looking at just one slice. A far more accurate way to understand a company’s true scale is to ask a different question: what would it cost to buy the entire company, not just a single piece of it?
In the financial world, this total value is called market capitalization, or “market cap” for short. Think of it as the ultimate price tag. To calculate it, you simply multiply the company’s current stock price by the total number of shares available. This number gives you a much better sense of how big a company actually is and provides a far more accurate measure of its true scale.
This is where the real story of Apple’s growth comes alive. Back when its stock was near that famous $700 price point, its market cap was a massive (for the time) $650 billion. Today, even with a much lower share price, Apple’s market cap has soared to over $2.5 trillion. The company isn’t just bigger; it’s in a completely different league. This incredible growth in total value shows just how much the business has expanded.
What Actually Makes Apple’s Stock Value Grow?
That massive $2.5 trillion market cap didn’t appear out of thin air. It grew because the business itself became stronger, more profitable, and more essential to our lives. For a company like Apple, this boils down to three main things you can easily track.
At its core, the value of Apple’s stock is driven by its real-world performance. Investors are constantly looking for signs of a healthy, growing business, which generally fall into these categories:
- Strong Product Sales: Selling more iPhones, Macs, and iPads this year than last year.
- Exciting New Inventions: Creating future hits that could become as big as the Apple Watch or AirPods.
- Growing Profits (Earnings): Making more money after all the company’s bills are paid.
Think of it this way: when Apple announces it sold a record number of iPhones, investors see a company at the top of its game. When it reveals a new product like the Vision Pro, they see a source of future income that can have a major impact on the stock. And when the company’s earnings—its profits—are high, it’s a clear signal that the business is being run efficiently and successfully.
When all three of these areas are firing on all cylinders, investors feel confident in the company’s long-term growth. This confidence increases demand to own a piece of Apple, which pushes its total value up. Of course, Apple isn’t operating in a bubble, and its success doesn’t go unchallenged.
Is Apple’s Leadership Safe? A Look at the Competition
While Apple’s success is remarkable, it’s a heavyweight champ that always has challengers waiting in the ring. The company doesn’t get to just sell products; it has to win customers. In the smartphone arena, Google’s Android software powers a world of formidable rivals, led by Samsung. For personal computers, the classic Apple vs. Microsoft competition in business and creativity is as intense as ever. These are not small startups; they are global giants fighting for the same dollars.
This constant battle for customers is a key risk for investors because it directly affects the growth drivers we just discussed. If a competitor releases a fantastic new gadget at a lower price, some buyers might choose it over an Apple device. To keep its sales strong, Apple might have to spend more on marketing or be less aggressive with its pricing, which can squeeze those all-important profits. When profits are threatened, investors can get nervous.
That pressure to perform is exactly why continuous invention is one of Apple’s core competitive advantages. The need to create the “next big thing” isn’t just about making headlines; it’s a survival strategy to stay ahead of the pack. The company’s ability to consistently design products that people feel they must have is what has kept it on top. But this intense rivalry is just one of many outside forces that can influence Apple’s path forward.
The Big Picture: How the Outside World Affects Apple’s Stock
Apple’s success isn’t just a story about beating its rivals; it’s also tied to the financial well-being of its customers around the world. A company can design the most amazing products, but its sales ultimately depend on whether people have the money and confidence to buy them. This introduces one of the most important external factors: the health of the global economy.
Think about how people behave when money is tight. During prosperous times, upgrading to a new iPhone or MacBook feels like an exciting purchase. But when headlines are filled with economic worries, many will choose to make their current device last another year. This shift in consumer spending, multiplied across millions of people, can directly impact Apple’s sales and profits, which in turn affects investor confidence.
This connection to the broader economy is a significant market risk because it’s largely outside of Apple’s control. The stock’s historical performance reflects this reality; sometimes even a great company’s stock will dip during a widespread downturn. This constant pressure is exactly why Apple is always focused on the future, searching for that next game-changing innovation that can fuel growth no matter the economic weather.
Searching for the “Next iPhone”: Where Will Future Growth Come From?
For years, Apple’s success has been powered by the incredible popularity of the iPhone. To keep growing, however, a company always needs its next blockbuster. This constant search for a new growth driver is why you hear so much buzz around brand-new categories like the Apple Vision Pro. A truly groundbreaking product has the potential to create an entirely new market, just as the iPhone once did, and the excitement for such innovation can significantly impact the stock.
Beyond shiny new hardware, however, lies Apple’s fastest-growing and perhaps most important business: Services. Think of things like iCloud storage, Apple Music, and the App Store. Unlike a one-time sale, these services create a steady, predictable stream of income every single month from hundreds of millions of users. For investors, this recurring revenue is incredibly attractive because it provides a stable financial foundation that is less dependent on big, splashy product launches.
Ultimately, Apple’s strategy is to have these two areas work together in a powerful “ecosystem.” When you buy an iPhone, you’re more likely to use iCloud; when you depend on iCloud, you’re more likely to stick with an iPhone for your next purchase. This interlocking system keeps customers loyal and spending within Apple’s world, creating a cycle of growth that analysts watch closely when considering the company’s long-term value. This growth also enables Apple to reward its owners in more direct ways.
Shareholder Rewards: How Apple Pays Back Its Owners
When a successful company like Apple has extra cash, it has a couple of ways to thank its owners for their investment. The most direct method is by paying a “dividend.” Think of this as the company sharing a small piece of its quarterly profits with you, paid in cash for every share you own. It’s like getting a little bonus just for being a part-owner and is a key part of the company’s shareholder return program.
Another powerful, though more subtle, tool is the “stock buyback.” Returning to our pizza analogy, when Apple buys back its own stock, it’s essentially buying up some of the pizza slices from the open market and taking them off the table. This doesn’t change the size of the overall pizza (the company’s value), but it does mean your remaining slice is now a slightly bigger percentage of the whole pie. Over time, making each share more scarce can help increase its value.
By combining steady growth with these shareholder returns, a company signals confidence in its financial health. For those considering Apple for long-term growth, seeing the company consistently reward its owners is a crucial piece of the puzzle. Analyzing the company’s fundamentals means looking at this complete picture—not just its product pipeline, but also how it uses its profits to benefit its shareholders.
Thinking Beyond the Price Tag
You started with a straightforward question: could Apple’s stock reach $700 again? Now, you see the financial world through a new lens. You understand that stock splits fundamentally changed the math, making that old price a ghost from a different era. Instead of getting stuck on a single share’s price, you can see the bigger picture: the company’s total value, or market capitalization, which tells the true story of its scale and success.
Focusing on that old $700 price is like asking why a completely redesigned car doesn’t cost the same as its decade-old model. The better, more powerful question is: Does Apple have the ingredients for long-term growth? Can it continue to innovate, grow sales, and increase its total value over time? Answering this is the real secret behind any sound analysis of Apple’s future.
You now have the tools to follow this story yourself. The next time a headline about Apple flashes across your screen, listen for the concepts you’ve learned. Are they discussing record sales, a breakthrough product, or new competition? You’ve moved beyond wondering about a single number. You can now track the narrative of the business itself, giving you the context to assess long-range predictions about the stock’s future.