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      12-05-2018, 10:21 PM   #7
BayMoWe335
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Quote:
Originally Posted by WestRace View Post
Although you're right that AAPL is very cheap compared to other FAANG stocks, but PE ratio is more like a static indicator that does not really predict future performance. There are a lot of stocks that have low PE ratio but not very attractive. Historically AAPL tends to have lower PE ratio vs. other stuffs like Facebook, Google...

I think people are concerned that AAPL future growth potential given consumers are starting to resist the pricier Iphones which AAPL relies for a lot of their growth. There are a lot of talks that AAPL is now making a transition into more of a software service company and while their hardware products may be tapering, their new source of growth will be in their software service sector. But that's risky since we don't know how it's going to look like.

But the real reason for stocks being too expensive is that the FED has printed too much money for so cheaply at 0% for too long, the people have to PARK their money somewhere. I intentionally used the word "PARK", since it's not investing anymore, it's merely an acting of saving your own money. That's the only reasons why these stocks are so overly bought.

They said QE was never tried before, well I think we are going to find out.
It’s trading at that multiple based on 2019 estimates, so it is a look forward. Apple makes 3X the profit of Microsoft and Google and has a similar market cap. Apple is dirt cheap by any measure and the discounted multiple is based on it being a “hardware” company, but that is changing with a $40B services business growing at 25%.

There is no real data showing consumers are “resisting” higher priced iPhones. Every article on that is speculation. The quarter Apple just put up shows people are buying iPhones for much higher ASPs than before, with no loss in unit sales.

Apple sold 218M iPhones in 2018 at $760 each and 217M in 2017 at $650 each. Pricing power in real numbers.

If Apple puts up a disappointing quarter in Christmas and the real data shows a revenue drop, ill start changing my thought process. Fake stores around iPhone demand are normal during this year, designed to manipulate the stock and are always proven false in the real data. Same thing was said about iPhone X last year and iPhone 7 prior to that. Apple always delivers the earnings, period.
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