“When Apple reports its earnings on Tuesday, it’s virtually certain that the tech giant will report record quarterly profits,” Susie Poppick writes for Money. “Apple almost always does.”
“The question is, are overall iPhone sales growing or shrinking? And if they’re on the rise, will the pace of that growth be enough to cheer Wall Street and stem the recent drop in Apple’s stock, which has tumbled nearly 5% this year and 25% from its all-time highs?” Poppick writes. “Despite the recent slump, Apple AAPL 0.61% is still trading at around $100 per share, and investors have made the consumer electronics giant—with a total market value of $562 billion—the most valuable company on earth.”
“Moreover, the stock’s price is less than 11 times the earnings analysts expect for next year. That compares with a P/E ratio of 16 for the S&P 500, and 19 for rival Microsoft,” Poppick writes. “In other words, the ‘E’ in Apple’s P/E is so high that its total value must be similarly stratospheric, but investors are skeptical that Apple’s profits can grow quickly from here.”
Read more in the full article here.
MacDailyNews Take: Has Apple peaked? No.
What the analysts expect from Apple’s Q116 earnings report today – January 26, 2016
What to look for in Apple’s earnings report tomorrow – January 25, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 22, 2016
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]