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Originally Posted by BayMoWe335
Do you actually know AAPL’s valuation? It trades at 13X earnings and just got finished putting up 20% revenue and 40% eps growth.
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Although you're right that AAPL is very cheap compared to other FAANG stocks, but PE ratio is more like a static indicator that does not really predict future performance. There are a lot of stocks that have low PE ratio but not very attractive. Historically AAPL tends to have lower PE ratio vs. other stuffs like Facebook, Google...
I think people are concerned that AAPL future growth potential given consumers are starting to resist the pricier Iphones which AAPL relies for a lot of their growth. There are a lot of talks that AAPL is now making a transition into more of a software service company and while their hardware products may be tapering, their new source of growth will be in their software service sector. But that's risky since we don't know how it's going to look like.
But the real reason for stocks being too expensive is that the FED has printed too much money for so cheaply at 0% for too long, the people have to PARK their money somewhere. I intentionally used the word "PARK", since it's not investing anymore, it's merely an acting of saving your own money. That's the only reasons why these stocks are so overly bought.
They said QE was never tried before, well I think we are going to find out.