From a year-old piece by Abdel Ibrahim at The TechBlock:
The stock market sell-off of 2007-2009 bears out this cautionary
approach. During that period, Apple released its original iPhone,
followed by the iPhone 3G, the iPod touch, the MacBook Air, and a
variety of updates to their Mac line. They were seeing record
earnings quarter after quarter, not missing a single beat, yet the
stock dropped from roughly $202 to $78 in that period. Why?
Because stocks react to people, not analysts.
In hindsight, everyone should be able to agree that this was crazy.
Via email, here’s the take from DF reader Gregory Ley:
As Apple grew like crazy the past 10 years it never traded like a
“growth stock”. Always had low valuations (infamously low P/E
ratios relative to peers, especially Amazon). Now that growth is
somewhat slowing (profit-wise, at least… not revenue or units —
those are still growing +20% year over year) the stock is “falling
back to earth” except it was never overvalued to begin with.
That’s the best explanation I can come up with. AAPL, the stock,
has almost become disassociated with Apple, the company. The same
craziness that seems to overvalue Amazon also undervalues Apple.
★ Thursday, 24 January 2013