Is Apple the next to face the cover jinx?
Some Apple investors are upset that the latest issue of Barron’s predicts that Apple will become the first company with a $1 trillion market capitalization, reports Rachel Koning Beals of MarketWatch.com
Beals writes, “Magazine cover stigma, even with a favorable slant to the story, began with jinxed championship proclamations on the front of Sports Illustrated but have expanded to stocks.
“Memorably, Jeff Bezos was Time Magazine’s Person of the Year in 1999. Amazon.com’s stock dropped from a high of $113 in December that year to $5.51 in October 2001. Of course Amazon closed on Friday at $1,168.
“There are no serious professionals who change their portfolio allocations based on magazine cover indicators, wrote Brown. ‘People who were already predisposed to agreeing with the premise of a Barron’s cover story will enjoy the confirmation it offers,’ he said. ‘Those who were already predisposed to have the opposite opinion will hold it up as evidence that the current trend has reached the end of the line.’
“As for the Barron’s piece itself, the authors say at $899 billion already, Apple is easily the closest company to a $1 trillion market valuation, and its iPhone X, along with a rising stream of service revenue, looks likely to get it there.”
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