Simple, as everyone is predicting the worse and there are so many people bragging they have shorted now or have purchased put options.
So, the expectations are it to fall and people have already sold off. So, the stock will go up even with bad earnings as it is already built in. Apple will explode up to $500 because absolutely no one expects it and even the BULLs of Apple stock are hoping it won't fall back to $400.
Stocks don't go up just because people are negative. There has been no good news at all on the stock, only bad. Stock deserves where it is. They need to remove the CEO, CFO and most of the senior management. They were YES MEN under Jobs. These guys have no vision or direction and have lost employee respect and WS interest. This company is slowly sliding down the tubes like before to oblivion. They are making the same arrogant mistakes they did back in the late 80s and early 90s. This time they may not recover. Jobs will NOT come back.
She's probably right, there's been way too much negativity for way too long. One could with different attitude rationalize a 15 or even 20 PE as well as a 7 or 9 PE. But my guess is nothing much is happening on the upside till the new products start to roll out this Fall. Meantime, surprising that Samsung's sales of high-end phones are weakening even BEFORE Apple's new model has come out. Once you took away the smoke and mirrors re. the new Samsung S4, it really wasn't much improved over the S3 (which is still being sold). And Samsung has still mostly copied Apple in Smartphones, little real useful innovation by Samsung. The danger to Apple is after it comes out with its next new models, that Samsung is often able to copy within 6 months to a year the improvements.