Yes, but the analyst estimates for next quarter are way, way too high. Currently they are projecting 14% earnings growth which clearly is not going to happen. Any beat will be drowned out by howls that guidance was way under expectations.
For a large cap with about 15% growth, it would seems a PE of 20 would be more than fair. Its current PE of around 29 seems rather high. Especially considering that today's earnings show that 15% growth estimate is way too high. I bet it will take Google far longer to get back to its all-time high than it will take Apple to get back to $706.
The days of 60% growth are over. Still, with most people having a smartphone and replacing them every 2-3 years, there is a lot of money to be made. The obsession for growth where one bird in the bush is worth 10 in the hand is a little absurd.
Elon Musk and Tesla are currently further from their all-time high than Apple is. I guess Elon Musk is running his company into the ground, too. If Musk had Apple's money he would probably spend it Google-like on all sorts of pie-in-the-sky ideas. That just isn't Apple's style. Apple got to where it is by keeping a laser-like focus on what it does well. When it strayed from that plan it found itself facing bankruptcy.
Even if Apple were to buy Google that would only give earnings a one-time boost of about 25%. Think about that. There just aren't any companies Apple could buy that would have any impact on earnings. At this point Apple should keep doing what it is good at and return profits back to shareholders. That is what large caps are supposed to do.
Only in bizarro world is a CEO whose company owns five of the top ten all-time best quarterly earnings in history judged harshly compared to a CEO whose company is a tiny fraction of Apple and has to cook the books in order to appear profitable.
Apple had the inevitable problem of transitioning from a hyper growth stock to a value stock. The decline from 700 has absolutely nothing to do with Cook's performance. How in the world can a CEO drive a company into the ground when it is coming off a quarter where it had over $20 billion in free cash flow?
The mentality of so many here is beyond stupid. It seems to be "I lost money gambling on the stock, therefore it is the CEO's fault. Fire him! Its been three years and he hasn't created a new $75 billion product category to sustain 40% growth for a company with $170 billion in revenue. What a loser."
Do you realize Google has fallen much further than Apple since its split? Google was a momentum stock. Now that the momentum is gone, it has a long way to fall.
Apple could have earnings of $1,000,000,000,000 and the stock would still fall 10% the next day because some obscure metric wasn't reached. The headlines would read, "Apple disappoints on massive drop in iPod sales."
Apple made over $20 billion last quarter in free cash flow. Clearly the CEO is doing something right. Stock price and company performance can sometimes get disconnected. Now is one of those times. People who want to fire a CEO because they lost money day trading the stock are the ones lacking vision.
Apple makes about 4 times what Google does and for all the talk of growth, Google's growth has slowed down to about 15%. At some point sanity will return to the market. I bet three years from now Google will be trading for less than it currently does.
You really should stop having conversations with yourself. Posting fake rumors on message boards are not going to have any impact on a stocks price. You and all of your aliases should just go back to the Zohydro board.
What a bunch of stupid. This "innovation" meme is absurd. Apple's latest iOS devices have 64 bit processors, that is very innovative. When companies have successful products they incrementally updated them the way Apple has been doing. That is why Apple made $20 billion in free cash flow last quarter.
Regarding the iWatch, Apple does not rush things to market just to be first. If that is your thing then get into Samsung. Apple will release a watch when the company feels the time is right. In the meantime, it will continue to make more money than everyone else.
Apple grew revenue last year by more than all Social Media combined. However, since its revenue is so large that growth was small on a percentage basis. Apple is simply too big to have growth. Either accept that fact or invest in small caps. Five of the top eight all-time corporate quarterly earnings have been set by Apple in the past two and a half years. That doesn't happen with a company on auto-pilot.
That is good because Google has 1/3 of the earnings that Apple does. It will take over a decade of 15% growth for Google to approach where Apple is currently at. Face it, Google is a bubble and currently has a market cap that is not justified by the fundamentals.
What has Cook done that is so horrible? The company had over $20 billion in free cash flow last quarter. Companies setting earnings records don't normally fire their CEO.
It seems all of the rage aimed at Cook is because the stock is down from its all-time high. Well, Facebook, Amazon and Tesla are down nearly the same percentage from their all-time highs, too. Should Zuckerberg, Bezos and Musk also be fired?
They are not falling from all time highs. Facebook, Amazon and Tesla are all down over 20% from their all time high. Google is down over 10%. Apple is down around 7.5% from its 52 week high. When are you going to start screaming that Bezos, Zuckerberg, Musk and Page need to be fired?
Notice how the NASDAQ is down over 2% while Apple is only down .9%? Sure seems like someone is holding it up and will bump it to at least the 537.5 strike before the day is over.
Google is down over 10% in the past month. It sure looks like people are starting to rotate out of that bubble stock.