In “April, we were in the midst of what some of the ‘market technicians’ on financial TV would call a ‘consolidation period’ for Apple (AAPL). Eric Jackson blogs for Forbes. “In layman’s terms, what that means is that Apple’s stock price basically hovered in the same general price around $315 from mid-October until a month ago in June.”
“This flat period led to much hand-wringing among Apple investors and non-investors alike. As late as a few weeks ago, in a period of market anxiety about Europe, Apple’s shares briefly got down to $310. At the time, I recall seeing many tweets saying things like, ‘Oh look, Apple is rolling over and that is a sure technical sign that the rest of the market will follow’ and ‘It’s impossible for a large company like Apple to keep growing, so watch for its stock to drop,'” Jackson writes. “Thanks, market technicians. What a lot of nonsense.”
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Jackson writes, “I said back in April that there were 9 things that could happen to get the stock moving higher to the upside. The good news is that only a few of these have happened and it’s already shot the stock up to over $400 a couple of days ago. Imagine what could happen if all of these 9 things happened in spades.”
Read more in the full article here.
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But here’s Google, with a PE in the mid 20s They only have a single product with a significant profit. Most of what else they try is the microsoft method: desperately copy what Apple is doing. There are some big names in tech carrying high double-digit, or triple digit PEs.
Even now, AAPL’s PE is stuck in the teens, despite 122% y-o-y earnings growth. Will the company ever get the respect it deserves?
Stick to things you understand. You do not understand equities. You do not understand P/E’s. And for all the fanboys who are constantly bitching about AAPL not getting respect, who cares? AAPL doesn’t care about respect from you they care about sales. It’s a huge money making machine. They care about sales which equals money. Period. By innovating and producing the best product on earth they have people standing in line (literally) to buy their stuff. That, fanboys, is respect that no other company on earth has. Apple. It’s a huge company that sells stuff. Great stuff. They aren’t your buddy. They don’t care to be your buddy. Need a buddy? Get a dog.
I think your lawn called.. it wants watering. and for those pesky kids to get of it.
“Need a buddy? Get a dog.”
Bet it wouldn’t work for you.
Oh dear me, GM I am helpless before your expertise. Here all this time, through decades of buying and selling securities, hundreds and hundreds of them, the many hours of reading things, as you insist, I just don’t understand. It has been mere dumb luck then that my little bitty nest egg became real financial independence, getting in and out of so many positions at the right moment because, gollee I don’t understand. Jumped all over AAPL in the single digits (split adjusted), after finding many points of confirmation you must know were just ravings of madness. Everyone who understood such things then said they were going out of business. That case, like others with four-digit percentage gains, I thought I saw a mismatch between a company’s reality and its valuation by the market, but then, what do I know?
Google is about as close to a non-profit as you can get. It competes for ad revenue with television companies. That’s the core business model worth 200 billion according to market technicians.
The majority of the civilized world has been bastardized into utter stupidity by Microcrap. It will take for Apple to become mostest richest, biggest, everythingest company in history to change that, or perhaps never.
@M159: WTF?? A low PE is a good sign. It means that Apple’s growth is accelerating relative to its stock price, which, considering Appje’s size, is astonishing. Apple is demolishing the “law of large numbers.” the company added $11 Billion in cash in just 90 days. That’s unheard of.
My point is that you DO NOT want a high PE. That’s a sign that the price of a stock is ahead of its earnings and earnings growth. That Apple has done so well yet remains do cheap shows there is room for continued price growth. As a long term investor, I want that. And you do too.
Peter Lynch famously said that a stock’s price will track (follow) its earnings – eventually. The two don’t move in lock-step. But eventually, it will catch up. For now, Apple remains a continued buying opportunity. That’s fantastic news.
As for technical traders, what a bunch of frigtards. They talk gibberish. It’s a company’s fundamentals that matter, not some idiotic teacup handle chart trends. Please. Get real.
So don’t worry. Unlike overhyped train wrecks like Groupon, Apple stock is a bargain.
Where did I say I was longing for an overpriced PE? The fact is AAPL’s current SP does not fairly reflect the company’s actual value, and especially ignores its spectacular growth.
I’m not at all worried, I’ve owned this stock since the single digits, and aside from being thrilled, I notice it is typically underestimated by Wall Street. A more accurate PE still leaves room for growth as long as Apple continues to perform.
ref “As for technical traders, what a bunch of frigtards. They talk gibberish. It’s a company’s fundamentals that matter, not some idiotic teacup handle chart trends. Please. Get real.”
I believe Mr. Buffett said that his advice was to know a company and how it works. If you like it, buy it. Apple, fits the bill. 🙂
Just a thought,
en
And that’s why I bought a bunch back when it was $20/share. I am happy! 😆
Can somebody explain Netflix share price and then apples? Lol. That is a real fucking joke right there.
Does Apple’s PE have to reach unity before the market reacts? I can wait : )
Apple needs to buy Netflix. It is that simple.
Apple could buy it using the spare change rattling in its front pants pocket. I wish I had bought Netflix a few years ago.
Imagine adding Netflix’s licenses and content into iTunes!
Seriously, what Apple has done is absolutely amazing. I love looking at the Market Cap Graph comparing Apple and MS.
Dec 2001 MS was at $356B, where as today Apple is $358B
http://ycharts.com/companies/AAPL/market_cap#compCos=MSFT
Amazing
Google earns 7.68 per share and posts over 12% gain. Apple earns 7.79 per share and moves much less, even though that Google share costs 50% more than an Apple share.
What the?
SIDAGTMBTTS
You watchin Mikey?
the stock hasn’t move that much the article title made it seem it’s a huge gain. Whatever happen to the old days when earnings can jump this stock 10-15% ish