“Last week, Morgan Stanley’s Katy Huberty noted that Apple’s (AAPL) current stock price suggests that the market is expecting the company’s earnings to grow minus 2% in perpetuity,” Philip Elmer-DeWitt reports for Fortune.
“In the first of a two-part series, Bernstein’s Toni Sacconaghi on Monday drilled a little deeper into that -2% growth rate and found a series of what he calls ‘fantastically pessimistic assumptions,'” P.E.D. reports. “In other words, the company is growing like gangbusters, not shrinking like its current P/E ratio would imply.”
Read more in the full article here.