Kevin O'Leary Warns Apple Investors After Value Reaches $1 Trillion

Apple stock rose as much as 2.9% on Thursday, bringing its year-to date-return to about 22% versus the S&P 500’s gain of 6%. Apple grew its sales by 17% year over year and its earnings by 40% year over year in its June quarter compared to the estimated 8% sales growth rate for the average S&P 500 company.

Other analysts are not so down on the stock, including Wall Street’s “dean of valuation” Aswath Damodaran, who told CNBC Wednesday that Apple is still “reasonably valued” and “not trading at that high a multiple of earnings” at these levels, but O’Leary begs to differ.

“I’m euphoric like everybody else,” said O’Leary. “I love milestones like a trillion dollars–it’s wonderful, but it’s a phone–no different from a Nokia or a Blackberry or a Sony device that played music decades ago, and it’s really hard to stare at those case examples and ignore them.”

For more market trends, visit ETFTrends.com.