Originally Posted by Godzilla
See you guys at $1,000+. Fundamentals are just too good to see otherwise, and considering the info we DO have in iPhone 5 right now, unless it underperforms iPhone 4S, we'll see even more P/E contraction going forward, and nice year over year growth. Those estimates are through the roof crazy, but if Apple can even get near said lofty estimates, the stock is forced to claw its way up, EVEN WITH a low P/E (a P/E correction to the upside and $1,000 would come quicker than any of us can even think).
First thing traders learn (usually the hard way) is that fundamentals don't matter.
And once stocks get up to huge market caps, all that really matters is dividends. There always has to be an 'end game' for a stock. A way for the market to regain the money put into the stock. There's only 2 scenarios - share buybacks and dividends. Share price increases only last so long, if they lasted forever the market would essentially be a Ponzi scheme.
I'd personally bet that Apple has topped out, or close to it. The market is saturated with devices, investors expect too much of Apple now, and there's a million hedge funds who will be looking to sell for profit. Technical indicators would tell you that right now, there's alot more potential sellers than buyers. IMO, AAPL will probably slowly drift down to whatever price would give a 5% dividend, and then it will hover there for a long time, kind of like MSFT.