Wow, they are bigger than General Electric! Oh wait, they are bigger than Exxon...oh wait...they are bigger than ATT...oh wait, they are bigger than US Steel.... oh wait...
The biggest ones, fall the hardest. Apple will one day decline 95% from where it is today. They are their own worst problem in that every 12 months, they gotta do it again.... Sooner or later, their product will not be considered tops.
This Nasdaq bubble will burst just like y2k and lots of folks will see portfolios decline 80% or more, because they bought into this bubble.
Flip side: with no change in market size, Apple could double mobile market penetration and 5x computer market share. An outer limit yes, but still shows potential for ~$8T cap even without new markets.
Apple? What about Netflix?! What multiple are its PE ratio now? Stocks have their own reality. Imagine opening a small business that take 177 years to pay back the original investment. No one would ever do that.
the total lack of breadth and narrowness in the market is quite shocking. Hedge funds and money of all kinds are completely crowded into the FANGS and a few more. My question - does that mean the market will crash, or will we see a smoother rotation into more beaten-down sectors like banks, energy, industrials, defense (pretty much anything non-tech!)?
Yeah, General Electric has never had its stock crater. /sarc
Even with Apple’s substantial market share (a bit less than one quarter of all new units sold; it also has a lot of legacy units that have remained in use, if not with the original owner, then as a hand-me-down or a used sale), it has been lapping up most of the profits of the entire mobile phone biz for over a decade now.
What ‘problem’ will it have next? It is gaining market share with its SE, and reportedly the upcoming iteration of its flagship model(s) are going to be priced well under the frankly crazy prices that all such flagships (all makers) tend to charge. Apple remains the aspirational brand for a lot of people who just haven’t have the kind of money required in the past. Then the rant will be, Apple is making less money.
I’m still using a flip phone, so there.
Lew, the Unbox Therapy guy who some consider an Apple-basher because of his video from yesteryear where he bent an iPhone that was already considered to be too thin and too fragile (and Apple has been thickening their models by a tiny amount since).
“Why Apple is Number 1” — Lew Later
https://www.youtube.com/watch?v=wWqr3965ip4