Apple shares have soared recently, hitting record highs. Writing for AppleInsider, Daniel Eran Dilger argued that this is in no small part down to investors and analysts starting to properly value AAPL.
It certainly appears that Apple’s historically low valuation in terms of Price to Earnings—its stock valuation compared to its ability to generate profits—is tied directly to one of the largest mistakes made by tech industry investment analysts over the past decade: the idea that Apple’s iPhone was a fluke product that would rapidly be commodified and overrun by an army of cheaper, less restricted and more “open” handsets running Google’s Android… This assumption was grounded on the 1990’s history of the Macintosh, which began to perform well for Apple for just a few years before Microsoft copied its foundational concepts and spread them across generic PCs…
Check It Out: Investors Might Now be Valuing Apple Stock Properly