Investors are finally starting to understand Apple

Apple stock price has more than doubled over the last year,
Apple Fifth Avenue
Apple’s stock price has more than doubled over the last year, but it’s not because of irrational exuberance. Instead, it seems that investors have started to really understand how Apple Inc. works.

Daniel Eran Dilger for AppleInsider:

Understanding what is happening to the Apple stock price should be of interest to more than just the investment community. For Apple’s customers, it’s an endorsement of the company’s long term strategies that have produced a string of hit products…

The ignorant and often cynical pessimism of tech media kept insisting that unit shipments and overall market share were critically important… Beyond minor bloggers, this story was paraded around by The New York Times, by Bloomberg, Japan’s Nikkei, and by other major news outlets.

Apple’s current P/E of around 26 is double where it has been across much of the last decade, but is still undervalued when compared to Google (28) or Microsoft (31). That indicates that the company’s massive jump isn’t out of the ordinary, but rather a long-overdue correction. It also indicates that Apple’s executives were right when they claimed that the company was undervalued and that the best use of the company’s cash was to buy back shares and retire them, transferring that value to their shareholders.

To anyone who listened, that clearly articulated message has proven to be a huge windfall, creating massive billions of capital for shareholders who stuck with the company.

MacDailyNews Take: We (minor bloggers) have been saying Apple is undervalued for several years.

AAPL was undervalued before its recent overdone haircut.MacDailyNews, November 23, 2018

Apple’s share price could double and it’d still be undervalued. — MacDailyNews, August 30, 2016

Even as it made Apple the world’s most valuable company, the market has never really understood Apple. — MacDailyNews, October 5, 2015

The clarity of Apple’s story was never obscured for those not easily blinded by the rather transparent manipulations of others. — MacDailyNews, February 12, 2008


    1. Kent is only wrong, period.

      See how silly your game is, Kent?

      If you can’t find at least some journalism worth reading in a massive publication like the NYT, then you’re just outing yourself as being intentionally ignorant.

      For the record, I occasionally pop onto the Faux News website. Their sports section is excellent. The political opinionators there, however, are an embarrassment. They have to twist logic very hard in their vain attempts to defend the indefensible administration over and over and over again.

  1. Since the 2K-ish, AAPL’s famous cry of “One More Thing,” brought excited anticipation to the consumers/followers…but it was a Wall St handicap.

    With the developing of services and subscriptions, Wall Street looks to Apple as more predictable…instead wondering if/when per the next hot product. (How dare I be a contrarian to Eran, but I don’t think it’s what he proposes…the endorsement/understanding of how Apple works re: hit products.)

    Wall Street loves annuity-type income…”mail-box” money vs waiting for the next big thing. Apple is becoming huge $$ mail box.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.