In the article, you’ll see a list of the most expensive stocks that have reached new highs. This list is just a brief introduction to the thorough research that invested a lot into finding out which stocks are worth investing in.
What are the Most Expensive Stocks?
The most expensive stocks that have reached new highs are the following: Apple Inc. (AAPL), Microsoft Corporation (MSFT), Amazon.com, Inc. (AMZN), and Facebook, Inc. (FB)
How We Decide What is the Most Expensive Stock
There is no definitive answer when it comes to determining the most expensive stock on the market. A variety of factors, including company size, earnings, and market capitalization all play a role in this determination. However, some stocks that have reached new highs may be more expensive than others. Here are four of the most expensive stocks that have reached new highs over the past year.
Apple Inc. (AAPL)
Apple hit a new high of $207.05 per share on May 29, 2018, becoming the expensive stock on the market. The iPhone maker has been seeing steady growth in its sales and profitability, thanks in part to strong demand for its latest smartphones. Apple also benefits from strong investor confidence and a generally healthy global economy.
Microsoft Corporation (MSFT)
Microsoft hit a new high of $206.72 per share on May 29, 2018. The software giant continues to see strong growth in its core products and services, as well as in its international operations. Its recent acquisition of LinkedIn Corp., as well as its pending acquisition of GitHub Inc., suggest that Microsoft is continuing to expand its reach across multiple industries.
Amazon.com Inc. (AMZN)
Amazon.com’s stock reached an all-time high of $1,895 per share on May 29, 2018. The online retail giant has seen its revenue grow at an impressive rate in recent years, which is attributed to the company’s wide range of products and services. While Amazon may not be able to outpace technology giants such as Apple and Microsoft, it continues to generate strong revenue growth and is now valued at over $1 trillion worldwide.
Facebook Inc. (FB)
Facebook reached a new high of $166.06 per share on May 29, 2018, after experiencing a large gain on the first trading day of the month due to increased investor confidence in advertising revenue from its Instagram acquisition earlier this year. Facebook continues to see steady growth in revenue, operating income and earnings per share, but continues to be plagued by concerns over its privacy policies due to the Cambridge Analytica scandal. Facebook’s strong earnings performance has helped it remain one of the most valued social media companies in the world, valued at $332.14 billion at market close on June 6, 2018.
How to Pick a Stock for Your Portfolio
It can be tough to determine which stocks to buy when the market is up and stock prices are high. But with a little research, you can find stocks that are worth investing in even amid the current bull market. Here are five tips for picking the most expensive stocks that have reached new highs:
- Look at companies that have strong fundamentals: A company with strong fundamentals will have a strong balance sheet, good cash flow, and solid earnings. These qualities indicate that the company is well-run and will be able to continue prospering in the future.
- Consider companies with positive financial ratios: Financial ratios help investors measure a company’s financial health and performance. They include things like debt levels, return on equity, and liquidity ratios. A high financial ratio indicates that a company is financially sound and able to pay its debts and returns on investments.
- Invest in companies with strong prospects: Companies with strong prospects have a bright future and are likely to grow in value over time. Consider factors such as whether the company has new products or services that are selling well, whether it has established customer base, and whether it has a strong competitive position.
- Be patient: Companies that are experiencing financial difficulties may continue to trade for a while. But if their financial conditions don’t improve, it may be time to sell the shares or change your investment strategy.
Paying close attention to these indicators can help you identify good companies in the market and avoid putting money into companies with poor fundamentals and riskier prospects.
Conclusion
It’s been a busy week for the markets, with stocks reaching new highs on both the Dow Jones Industrial Average and the S&P 500 Index. Here are three of the most expensive stocks that have reached these heights:
- Apple Inc (AAPL) — $207.05 per share
- Netflix Inc (NFLX) — $291.52 per share
- Alphabet Inc (GOOGL) — $1,075.92 per share
These stocks are expensive in the sense that they have not yet delivered profits of any kind. The stock market is supposed to reward companies with growing sales and profits, but Apple, Netflix and Alphabet haven’t yet proven themselves to be in a position where their stock price will rise as much as their valuations suggest.AAPL currently has a P/E ratio of 107 — which means investors would need to assume that the company’s current profit levels will continue for another 107 years. NFLX and GOOGL are about equally expensive at about 51 times earnings per share for both companies.NFLX closed at $286 on Friday; GOOGL closed at $1,082. Over the past year, NFLX has risen from $99.
