MacDailyNews Take: Flagrant patent infringement is a magic but fleeting elixir.
Madway reports, “Analysts expect fourth-quarter earnings to showcase Apple’s powerful one-two punch of the iPhone and the iPad, although some still question whether, with a plethora of rival products set to hit store shelves, Wall Street can justify Apple’s stratospheric valuation.”
MacDailyNews Take: Apple’s promise is ridiculously brilliant. If anything, Apple’s valuation is too low.
Madway reports, “Apple trades at nearly 21 times forward earnings, a healthy premium over smartphone and PC rivals.”
MacDailyNews Take: Rivals who have been badly beaten, roundly humiliated, and hopelessly outclassed by Apple for years and whose very best efforts result in pale, disjointed, unsatisfying imitations of Apple’s products and services. The Street hasn’t seen anything yet.
Madway reports, “Apple, famous for its low-ball forecasts, stunned investors in July when it set a revenue outlook for September that was $1 billion higher than Wall Street’s target. The company has beat the consensus estimate in each of the past eight quarters by a minimum of 13 percent and has bested revenue estimates for the past seven quarters… Apple is expected to post earnings of $4.08 a share on revenue of $18.9 billion, according to Thomson Reuters I/B/E/S. According to StarMine’s SmartEstimate, which places more weight on recent forecasts by top-rated analysts, Apple should post EPS of $4.17 on revenue of $19.1 billion.”
Read more in the full article here.
@Zune Tang
Better cool than FOOL
Zune Tang? Seriously, you’re back? Now we just need Ampar and this house will be rockin’.
Zune Tang? Seriously, you’re back? Now we just need Ampar and this house will be rockin’.
Yay, Zune Tang is back!
Now I know it’s gonna be a good quarter for AAPL..
Yay, Zune Tang is back!
Now I know it’s gonna be a good quarter for AAPL..
@KenC
According to Schwab, Apple’s forward P/E is about 8.6% below its current P/E based on trailing earnings. I don’t think that the forward P/E is all that aggressive, and both are well below the 30’s, 40’s, and 50’s of the mid-2000’s. You might also consider that some of the AAPL price in the P/E is offset by cash and short term securities and unencumbered by debt. You can draw your own conclusions, but Apple is generating a lot of cash and has been growing very quickly in recent years.
Price/Earnings 23.68
Forward P/E 21.64
It does not make sense to compare AAPL P/E to the average P/E of the S&P 500. How many companies in the S&P 500 have growth rates in the same ballpark as Apple?
An important consideration is Apple’s PEG (P/E multiple divided by growth percentage). According to NASD, the PEG for Apple is 1.30 based on an 18% long term growth forecast. Once again, you can draw your own conclusions. I personally believe that both Apple and AAPL have a lot of upside in the long term. Apple is still producing great products, and its consumer product sales are flooding over into government and industry sales. There are a whole lot of MacBook Pros and a growing number of iPads showing up in meetings, not to mention the spread of iPhones.
All I can say is that if I had stuck with my 1000 shares of AAPL rather than selling on the news of Steve Jobs’ pancreatic cancer, then I would have over $600K now (2:1 split) and be that much closer to retirement.
@KenC
According to Schwab, Apple’s forward P/E is about 8.6% below its current P/E based on trailing earnings. I don’t think that the forward P/E is all that aggressive, and both are well below the 30’s, 40’s, and 50’s of the mid-2000’s. You might also consider that some of the AAPL price in the P/E is offset by cash and short term securities and unencumbered by debt. You can draw your own conclusions, but Apple is generating a lot of cash and has been growing very quickly in recent years.
Price/Earnings 23.68
Forward P/E 21.64
It does not make sense to compare AAPL P/E to the average P/E of the S&P 500. How many companies in the S&P 500 have growth rates in the same ballpark as Apple?
An important consideration is Apple’s PEG (P/E multiple divided by growth percentage). According to NASD, the PEG for Apple is 1.30 based on an 18% long term growth forecast. Once again, you can draw your own conclusions. I personally believe that both Apple and AAPL have a lot of upside in the long term. Apple is still producing great products, and its consumer product sales are flooding over into government and industry sales. There are a whole lot of MacBook Pros and a growing number of iPads showing up in meetings, not to mention the spread of iPhones.
All I can say is that if I had stuck with my 1000 shares of AAPL rather than selling on the news of Steve Jobs’ pancreatic cancer, then I would have over $600K now (2:1 split) and be that much closer to retirement.
@ Zune Tang..
Your STILL using a two button mouse?
@ Zune Tang..
Your STILL using a two button mouse?
2 button mouse?? I couldn’t handle that – that’s why I’m using the Track pad…
2 button mouse?? I couldn’t handle that – that’s why I’m using the Track pad…
Hey ZT – are you going to change your name to Windows Mobile 7? Kin Tang would have been good. On the hand better wait for a while in case M$ decide to cancel WM7 as well.
Hey King Mel – Got to agree – how can you compare Apple to companies that suck and have no vision.
How long have tablets been around for – 5-10 years. All in the past have sucked. Apple at it’s first attempt hit the nail on the head.
Apple totally revolutionized the smartphone market. Android copied the interface design and met with success. M$ as usual missed the point and will probably give up pretty soon.
The stock price all depends on the hype that always comes with Apple stock. It could go up or down. We could be at the tipping point where the stock starts to rocket just like it did when the iPod went mainstream.
Hey ZT – are you going to change your name to Windows Mobile 7? Kin Tang would have been good. On the hand better wait for a while in case M$ decide to cancel WM7 as well.
Hey King Mel – Got to agree – how can you compare Apple to companies that suck and have no vision.
How long have tablets been around for – 5-10 years. All in the past have sucked. Apple at it’s first attempt hit the nail on the head.
Apple totally revolutionized the smartphone market. Android copied the interface design and met with success. M$ as usual missed the point and will probably give up pretty soon.
The stock price all depends on the hype that always comes with Apple stock. It could go up or down. We could be at the tipping point where the stock starts to rocket just like it did when the iPod went mainstream.
@ macslut, KingMel — great posts, thx for doing sharing/enlightening! Sorry 2 hear u sold on the pancreatic scare.
@ macslut, KingMel — great posts, thx for doing sharing/enlightening! Sorry 2 hear u sold on the pancreatic scare.
I wrote a really great post, but the MDN iPad app eated it.
I wrote a really great post, but the MDN iPad app eated it.
“Apple’s stratospheric valuation.”
I mean, who is this guy?
You can hear over and over again that Apples valuation IS NOT stretched at this price at the current growth rate. stratospheric valuation? What is this guy talking about? You don’t just look at the dollar value of a stock.
“Apple’s stratospheric valuation.”
I mean, who is this guy?
You can hear over and over again that Apples valuation IS NOT stretched at this price at the current growth rate. stratospheric valuation? What is this guy talking about? You don’t just look at the dollar value of a stock.
MDN’s app got too flakey for me. I just go to this site through Safari.
MDN’s app got too flakey for me. I just go to this site through Safari.
@Karlv
They talked about how aapl was a bubble when it was $150 and they will be talking about it when it’s at $400.
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@Karlv
They talked about how aapl was a bubble when it was $150 and they will be talking about it when it’s at $400.
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@Zune Tang
Anything that has the word Zune in it sucks. No exceptions to the rule. I’ll be very happy when Apple’s market cap is $100 billion over Microsoft’s market cap and the Zune HD is quietly discontinued if it already hasn’t been.
@Zune Tang
Anything that has the word Zune in it sucks. No exceptions to the rule. I’ll be very happy when Apple’s market cap is $100 billion over Microsoft’s market cap and the Zune HD is quietly discontinued if it already hasn’t been.