> Companies who still need high growth to justify their stock price (read: Apple)
Terrible example. Apple in fact has a very low P/E for this sector (it's 1/2 that of Google). Apple could have zero growth and remain highly profitable for years.
Terrible example. Apple in fact has a very low P/E for this sector (it's 1/2 that of Google). Apple could have zero growth and remain highly profitable for years.
Sure they could. But Wall Street would punish their stock price anyway.
Not everything about the way AAPL fluctuates is rational. Maybe NOTHING about it is rational. :-)
But the concerns about Apple's ability to sustain its ridiculous growth ARE quite real. Their growth IS slowing.
as of today (numbers from yahoo finance):
tick p/e
amzn 506
fb 87.6
goog 30.25
csco 16.67
intc 16.55
hp 16.29
msft 15.83
appl 15.4
ibm 12.4
twtr n/a (<0)
(sorted descending)