“Despite another blowout quarter, Apple shares are still trading at less than 15 times earnings, which is a bargain for a top-flight tech company,” Taylor Tepper and Paul J. Lim report for TIME Magazine.
“Apple enjoyed a banner year in 2014,” Tepper and Lim report. “Spurred by sales of the latest iterations of the iPhone and anticipation of the Apple Watch’s release in April, the company’s stock has risen nearly 50% since the start of 2014.”
“Despite that gain, Apple’s price/earnings ratio, based on projected profits, is just 14,” Tepper and Lim report. “That means the stock trades at an 11% discount to the S&P 500 technology index, even though the company’s earnings are growing 32% faster than the average big tech stock’s.”
Read more in the full article here.
MacDailyNews Take: It figures that the only thing cheap about Apple is its stock price.
Maybe they should announce they’re working on flying cars or teleporters or some other vapor like the Microsofts and the Googles of the world.
Nah, just keep doing what you do, Apple. Shipping smash after smash hit seems to be working. Rather well. 🙂
Shareholders can be rewarded in other ways beyond share price.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
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I don’t worry about such “indicators” anymore, when it comes to AAPL. At some point, the total market cap of AAPL will become so large, that it is its own market… something like gold or treasuries, with different rules and expectations. It is already not behaving like a typical tech stock with 1/100th of Apple’s value.
Back when Apple was worth 1/100th if its current value, AAPL could double in price easily with news like the recent quarter. Now, it takes another $676 BILLION in investment. Where does that come from…? More and more, it will have to come from taking money out of other stocks (and other types of investments), not funds that are “on hand.” And that will affect how traditional stock indicators apply to AAPL.
With all of its cash and predictable earnings, I think AAPL is headed toward being a “consistency” play, not a high-risk/high-reward play. Steady (on average) growth and healthy dividends. For me, that’s a fine place to be going forward.
if you look at avg EGG rates (+-BUN) with respect to fundamentals (PBJ, DUK, and PLUM), you realize the difference between BCN and HAM isn’t even baked in yet.
Makes you wonder if the analysts can even read a SAMN graph.
“Back when Apple was worth 1/100th if its current value, AAPL could double in price easily with news like the recent quarter. Now, it takes another $676 BILLION in investment.”
Never in my memory, has Apple doubled in price easily after news like the recent quarter. Sure, it may have had a nice increase, but doubling was never easy.
As for requiring $676B in investment, that’s NOT how it works at all. Since end of June 2013, Apple has gone up almost 90%, or about $300B in market cap. It did NOT take $300B in investment to do that.
I want to see 500 again!! Lets hit that 1000 we never seen!
There are 5.82 billion shares of AAPL outstanding. At $1000 per share, Apple is worth about $6 TRILLION. That’s significantly more than the rest of the NASDAQ (the stock market where AAPL trades), combined. We need to temper enthusiasm with some practicality… 🙂
Oh!!! That was such a nice thought. Even if you were being sarcastic at the time.
Apple hits a trillion dollar company. Anal…ysts say Apple is surely DOOMED!!!
Just a smile on my face. Lol
Samdung just reported earning; hot damn but it’s sweet!
“Samsung’s mobile profits plunge 64.2% after Apple’s iPhone 6 devastates premium Galaxy sales”
“Apple’s overall operating profits for the quarter were $24.2 billion, up 36.9 percent over the year ago quarter. That means Samsung Mobile is now earning less than 7.5 percent of Apple’s profits while still shipping more phone units.”
http://appleinsider.com/articles/15/01/28/samsungs-mobile-profits-plunge-642-after-apples-iphone-6-devastates-premium-galaxy-sales
Market share! Market share! Market share!
Can we hear it for market share?? C’mon!
Market share! Market share! Market share!
😉
Warren Buffett said he would never consider owning a stock with a PE above 10.