No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.
I see nothing negative about Apple's measly 20.
Right, but the mention of P/E in the article was quite pointless, especially stated the way it was, as a qualification. I didn't get what that was supposed to imply at all.
We're still in the midst of a nasty market correction. It will be interesting to see where comparative market cap for AAPL and MSFT go when the market begins to recover. Not that it means much. Comparing market cap is just a parlor game, really.
Saying that Apple is not a leader in marketshare really is quite pointless, as there's no other company it can rightfully be compared to.
No other company is a major player in desktop, laptop, mobile, OS, digital content, etc - AT THE SAME TIME!.
Microsoft is a non-player, at this stage.
If you combined Nokia, Amazon, Dell, Microsoft into one company, maybe they could compete with Apple. Of course the balance of market cap value would shift away from Apple, but in a "relative" comparison, I'd wager that Apple would still come out on top.
Steve Jobs must be over the moon. Only a deluded halfwit would have thought this possible in the late nineties.
..or someone who understood the philosophies behind the whole shebang. The pieces of the puzzle and the end game were clear to all who possessed vision the day they bought NEXT.
How could anyone compete...? Quite simply, they couldn't.
After Atari, AMiga And Be died, there was only one company with the knowhow and philosophies to bring UNIX to the masses.
Let us not fall victim to the same hubris that claimed Microsoft. In ten years some small or feeble company could come out of nowhere to surpass Apple. I'm just sayin', enjoy the moment, but never get complacent, Apple. Keep being hungry and never lose your vision of creating great, innovative, customer-centered products. I hope they DON'T ever have the biggest market share. That kind of dominance can easily lead to Microsoft-like complacency and fall.
This happened faster than I expected, but I'll have to see Apple break away by a sold $20B before I think that it's actually in the lead and not "tied" for all intents and purposes.
The next milestone: Besting MS' revenue per quarter.
No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.
I see nothing negative about Apple's measly 20.
Granted, 20 is not very high (the S&P has averaged 16 in the past 90 or so years), but it is not 'measly.' That reflects a fair amount of growth expectations for a very large company like Apple.
The larger you get, the tougher it becomes to create proportionally higher and higher value (for example, it is easier to grow 25% and become a $25B company from being a $20B company, than it is to become a $250B company from $200B). That is why growth is mean-reverting.
Let us not fall victim to the same hubris that claimed Microsoft. In ten years some small or feeble company could come out of nowhere to surpass Apple. I'm just sayin', enjoy the moment, but never get complacent, Apple. Keep being hungry and never lose your vision of creating great, innovative, customer-centered products. I hope they DON'T ever have the biggest market share. That kind of dominance can easily lead to Microsoft-like complacency and fall.
I agree, as a shareholder, today is more of a concern than celebration.
And you honestly think that anyone cares about Apple's market share, ...
There are many Apple-centric sites and followers that become giddy everytime there is a blip up in Apple's market share. Even Steve Jobs is not immune to that.
Many in the mass media wants to call attention to the race in marketshare because of the rivalry. It attracts "eyeballs", and feed the frenzy between the Apple haters and followers.
Apple Insider would be so boring without these tidbits. And, we won't even have time to gloat during moments like this.
My position remains that Apple followers should try to downplay these "pissing contests". There will come a time that Apple may lose the race in the marketshare. But, as it has proven, all it has to do is win the profitability trophy.
Quote:
Originally Posted by monstrosity
I agree, as a shareholder, today is more of a concern than celebration.
You are being too gloomy. If you want to depress yourself. just ponder the words:
"This too shall pass..."
Nothing lasts forever. Even Apple will someday be overshadowed by another. No company remained at the forefront, forever, after its founder has left the helm, or lost the "itch of challenge".
Comments
Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.
Then I recant my aggressive "No" at the start of my reply.
No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.
I see nothing negative about Apple's measly 20.
Right, but the mention of P/E in the article was quite pointless, especially stated the way it was, as a qualification. I didn't get what that was supposed to imply at all.
We're still in the midst of a nasty market correction. It will be interesting to see where comparative market cap for AAPL and MSFT go when the market begins to recover. Not that it means much. Comparing market cap is just a parlor game, really.
1) iPhone's continued exponential growth
2) iPad - this product is seling like hot cakes!
3) Mac is steadily gaining market share
4) iTunes/App Store - dominant and hard to beat combo
5) Retail - Sales at Apple's retail stores are PHENOMENAL
6) iAd - Another MASSIVE $Billion+ opportunity
7) Apple TV - Another MASSIVE $Billion+ growth area
8) Accessories, Software, etc.
9) iPod - Apple's secret weapon in iTunes/App Store/ iPhone OS dominance
10) Future products and services
No other company is a major player in desktop, laptop, mobile, OS, digital content, etc - AT THE SAME TIME!.
Microsoft is a non-player, at this stage.
If you combined Nokia, Amazon, Dell, Microsoft into one company, maybe they could compete with Apple. Of course the balance of market cap value would shift away from Apple, but in a "relative" comparison, I'd wager that Apple would still come out on top.
Oh, and btw, Apple is doomed!?
Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.
Just depends on the company. If they're experiencing sustained, rapid earnings growth, a P/E of 55 may not be too high at all.
too bad not in market share
And you honestly think that anyone cares about Apple's market share, now that they are officially the BIGGEST TECH COMPANY IN THE WORLD?!?
Then I recant my aggressive "No" at the start of my reply.
Sorry, no.
too bad not in market share
When you can buy groceries, or send a kid to college, or retire comfortably with market share, let me know.
Quiz: Guess which car company had the highest market share in the world for decades and decades.
Exxon-Mobil, here we come!
Oh, and btw, Apple is doomed!™
Look, you're Trade Mark isn't funny anymore!
................
Yes it is!
Steve Jobs must be over the moon. Only a deluded halfwit would have thought this possible in the late nineties.
..or someone who understood the philosophies behind the whole shebang. The pieces of the puzzle and the end game were clear to all who possessed vision the day they bought NEXT.
How could anyone compete...? Quite simply, they couldn't.
After Atari, AMiga And Be died, there was only one company with the knowhow and philosophies to bring UNIX to the masses.
Because market share is so important right?
Yes. I wish all my friends and colleagues worked under OS X.
Don't be so negative on my original comment, what i really meant to say is there is still way to go.
Hope Apple will be VERY aggressive in marketing the next OS (OSXI?)
This happened faster than I expected, but I'll have to see Apple break away by a sold $20B before I think that it's actually in the lead and not "tied" for all intents and purposes.
The next milestone: Besting MS' revenue per quarter.
No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.
I see nothing negative about Apple's measly 20.
Granted, 20 is not very high (the S&P has averaged 16 in the past 90 or so years), but it is not 'measly.' That reflects a fair amount of growth expectations for a very large company like Apple.
The larger you get, the tougher it becomes to create proportionally higher and higher value (for example, it is easier to grow 25% and become a $25B company from being a $20B company, than it is to become a $250B company from $200B). That is why growth is mean-reverting.
Let us not fall victim to the same hubris that claimed Microsoft. In ten years some small or feeble company could come out of nowhere to surpass Apple. I'm just sayin', enjoy the moment, but never get complacent, Apple. Keep being hungry and never lose your vision of creating great, innovative, customer-centered products. I hope they DON'T ever have the biggest market share. That kind of dominance can easily lead to Microsoft-like complacency and fall.
I agree, as a shareholder, today is more of a concern than celebration.
And you honestly think that anyone cares about Apple's market share, ...
There are many Apple-centric sites and followers that become giddy everytime there is a blip up in Apple's market share. Even Steve Jobs is not immune to that.
Many in the mass media wants to call attention to the race in marketshare because of the rivalry. It attracts "eyeballs", and feed the frenzy between the Apple haters and followers.
Apple Insider would be so boring without these tidbits. And, we won't even have time to gloat during moments like this.
My position remains that Apple followers should try to downplay these "pissing contests". There will come a time that Apple may lose the race in the marketshare. But, as it has proven, all it has to do is win the profitability trophy.
I agree, as a shareholder, today is more of a concern than celebration.
You are being too gloomy. If you want to depress yourself. just ponder the words:
"This too shall pass..."
Nothing lasts forever. Even Apple will someday be overshadowed by another. No company remained at the forefront, forever, after its founder has left the helm, or lost the "itch of challenge".
Why do you think Bill Gates left Microsoft?
Let's just hope that Steve Jobs remains driven.
CGC
Total 10.5 million units total, with iPad sales at 5 million units
I joked that it would be more like iPads = 10 million, everyone else = .5 million.
Today, we know:
Apple has sold 1 million + iPads
Apple cannot keep iPads in stock
Apple is producing 1.5 million iPads a month (est.)
In September Apple will ramp up production to 2.5 million Pads a month (est.)
Lets be conservative:
. 2 Million iPads sold thru Jun Q 2010
+ 3 Million iPads sold thru Sep Q 2010
+ 5 Million iPads sold thru Dec Q 2010
----------------------------------
=10 Million iPads sold through YE 2010
That's what I'm talkin' about!
.