Every time Apple Inc (ticker: AAPL) adds a billion dollars to its market cap, the question of what the world’s largest public company can do to keep growing becomes more and more important.
Following another strong quarterly earnings report, Apple now has a market cap of $816 billion.
According to a new report from Bank of America analyst Wamsi Mohan, Apple has a number of potential growth avenues to pursue in coming years with addressable markets worth hundreds of billions of dollars.
Before Apple shareholders even contemplate the company entering uncharted business territory, Mohan says Apple has plenty of growth potential left in its core businesses.
“Apple still has room to grow and gain share in the traditional areas of smartphones, tablets, wearables and desktops/laptops,” Mohan says.
Bank of America estimates that Apple has a $350 billion total remaining available market in these core areas as it competes for market share with Samsung, LG Electronics and others.
Outside of Apple’s traditional businesses, Mohan says Apple could also choose to pursue a number of mostly untapped markets, such as TVs, streaming music and video services, virtual reality devices and intelligent home assistants.
Mohan says the total addressable market for these non-traditional Apple businesses is more than $295 billion. And while competition in many of these markets is fierce, he says Apple wouldn’t necessarily be starting from scratch.
“Apple, with its immense net cash of $158 billion, can easily enter most markets through M&A,” Mohan says.
Earlier this month, Citi analyst Jim Suva said he estimates there is a 40 percent chance Apple will buy Netflix (NFLX) and a 25 percent chance Apple will acquire Walt Disney Co. (DIS) to make a big splash in the streaming video market.
In addition to the non-traditional businesses mentioned, Mohan says Apple could also choose to make a major push into the health care business with monitoring devices and the premium auto business, which represents roughly a $700 billion global available market.
Based on Mohan’s analysis, it seems…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
