What is it with the wankers on Wall Street and analysts/contributors from two-bit mobs such as Bloomberg and Forbes? Wall Street wankers wrong again on Apple.
Every quarter without fail they quote ‘sources’ to prove Apple’s sales wheels have fallen off and the company is about to grind to a halt.
After each quarter’s results prove their abject incompetence (or is it deliberate?) they refuse to admit their failures and begin the next quarter looking for yet more excuses to predict the end of Apple’s profits.
Some, such as Bloomberg spend months (years) talking up every conceivable competitor as being the one to finally kill the iPhone – witness the past year talking up the Google Pixel 2 phones, ignoring the cheap build, various quality issues, general ho-hum performance, and woeful sales.
It seems the only person anywhere near the Wall Street madness with any true appreciation of Apple, it’s products and values is Warren Buffett. This guy, with a track record to put the best of investors and analysts to shame recently purchased yet more Apple shares, declaring he’d own the entire company if he could.
Why wouldn’t he, or any sane investor? With a P/E ratio in the 18 range, Apple is the most undervalued major company in the US
Let’s use a little logic here.
Apple with multiple Fortune 100 and 300 lines of business, consistent strong profits ONLY get a P/E of 18
Google, previously a one-trick pony (Advertising), though seeing growth in web services also is 46
Facebook, another reliant primarily on advertising is 30
Amazon always – ‘about to make huge profits’ is a staggering 201
By any sane reasoning, based on ongoing prospects for profits and returns to investors Apple should have the highest P/E of all.
Using that same logic, we should not be saying who will be the first Trillion dollar company, rather why the hell isn’t Apple already a multi-trillion dollar company?
Remember, Apple makes almost twice as much profit as the next most profitable US major, (Note, that’s NOT Google, Amazon or Facebook).
AND Apple in their last quarter made more profit than Amazon has in their entire existence. Just think on that. Amazon is the one company that may beat Apple to the $1Trillion valuation yet in its ENTIRE EXISTENCE has made less profit than Apple made in the last quarter.
What mind-blowing stupid logic gives Amazon near that valuation?
Much as reasonable people would love logic to prevail, as long as there are the likes of Bloomberg and Forbes contributors, Business Insider and others reliant on ‘supply chain sources’ the same drivel will be spouted quarter after quarter.
I bet Tim Cook would love them to stick a cork (or a sock if you want to be polite) in it.
(Disclaimer, the writer owns AAPL and FB Shares)