Quote:
Originally Posted by
PureBlackFire 
bubbles always burst.
Apple had an affordable P/E. It was a relative bargain then, and it's very low priced now. It has a P/E under 10, so it's total stock value is under 10 years of profit at current numbers. That's not even close to a bubble, the company is pulling in huge amounts of cash, has a country sized bank, a brand image that's far stronger than their competition, and power over their suppliers that nobody else can touch (custom Intel processors, getting tech early, etc). Calling a stock a bubble is wrong when the stock is comparatively lower priced than most other tech companies.
Market value means nothing? It means something! Apple's undervalued status means people expect Apple to lose their margins, lose their customers, or fail to innovate in the fairly near future, because if they were to continue to grow at even 1/2 of their current rate it would be a screaming buy.
Edited by mechtech - 11/8/12 at 4:40pm