AAPL Stock price action

[nylonsteel]

re After Hours: 394.05 -28.19 (6.68%) 7:59PM EDT 10-18-11

wouldnt be surprised if we see 375 near term

350 would be pretty low - but i sees it as support level

i would ease into aapl around 350-375

if general market tanks - bag of hurt below 320

happy trading

jmho - dyodd

 

[vvswarup]

It sucks that Apple couldn't beat analyst expectations. But you can't argue with 28.7 billion in revenue. Apple stock is one of the great mysteries of the stock market. Here are some earnings multiples of other companies:

Amazon: 107
Google: 20

Apple is trading at 15 times earnings in spite of posting phenomenal growth numbers. In fact, Google missed analyst estimates back a few months ago and their stock got punished. Apple hasn't missed an estimate in seven years. Even before this, Google has commanded a larger earnings multiple than Apple. Strange if you ask me.

 

[benzslrpee]

P/E multiples aren't exact science but more of a reflection of market confidence in the companies growth and performance. Apple is riding a red hot streak right now but it's not exactly outlandish to say that a tech business built around consumable products is inherently more risky than one built around services (e.g. Google).

growing a hardware company is a lot different than software/advertising company. hence the discrepancies in their multiples.

also, P/E multiples really aren't meant for different industry analysis. a better comparison would be against Dell, HP and/or Moto who all produce something in the consumer sector in terms of hardware despite their offerings of enterprise solutions.

It sucks that Apple couldn't beat analyst expectations. But you can't argue with 28.7 billion in revenue. Apple stock is one of the great mysteries of the stock market. Here are some earnings multiples of other companies:

Amazon: 107
Google: 20

Apple is trading at 15 times earnings in spite of posting phenomenal growth numbers. In fact, Google missed analyst estimates back a few months ago and their stock got punished. Apple hasn't missed an estimate in seven years. Even before this, Google has commanded a larger earnings multiple than Apple. Strange if you ask me.