http://www.economist.com/node/21551065
This article analyzes Apple's condition and perspective. The author doubts that maybe there is irrationality in investing in Apple. The article says, "Even if bubble talk is over the top, a higher share price is justified only if Apple continues to meet earnings expectations. That usually gets harder. The stocks of market-leading companies historically underperform once they have reached the top slot, since they are less nimble and more vulnerable to attacks by regulators and the press. It is harder to continue impressive earnings growth on a large base. Even a modest earnings miss could have a big effect on the share price, since more of Apple’s shareholders today are fickle traders."
I kind of agree with the article that Apple is overvalued, and the high share price reflects people's wish to technology companies. But the post-Jobs Apple has already exposed some problems, for example, the weird name of the new generation of iPad.
1 comment:
Having done a stock project analysis on Apple, I was very pessimistic about their future back in 2009 when their stock price was down around $79 per share. However, look at them today-- they found a way to revolutionize the industry through releases such as the iPad, and have seen their shares skyrocket to at least $600 a share. I would argue that Apple has built a strong enough following and have such dominance in their industry that they will continue to innovate and create big things for the future (i.e. a potential iTV or entering the ACTUAL TV display market, not the cable box type market)... The sky is the limit with Apple, and they have enough money invested in R&D to continue to innovate.
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