Investers going to inflate that Apple bubble till it burst. Its worth 50 a share at best. Anybody worth there salt knows Apple isnt worth 600 bucks. I keep sayin this.
Let's examine your investment logic.
At 50 dollars per share, Apple is worth only fifty billion dollars. They would have 2x, probably 3x by the end of the year their market cap in cash (there would be no reason for them to be publicly traded at all).
They'd have so much cash at your share valuation that if they re-bought the company, took it private, and shut down all operations except their cash investments, they'd be making more profit on the interest than any video game company ever has during the run of a year. We're talking perpetual motion here.
Their annual EPS would be >$150. I actually can't find any company that's got a ratio remotely that high.
Apple is profitable, its sales are growing, the rate of growth in its sales is growing, it just initiated one of the largest dividends ever issued and that dividend is cash neutral to them they're banking so much cash. Every single sector of the company is profitable. They have one of the healthiest margins across the board. Their non-holiday quarterly sales exceed their holiday quarterly sales from a year or two ago. Their retail store is the most profitable per-square foot in the category and per-employee possibly in the world.
They have an obvious direction for growth--China--and every phase of that rollout so far has worked swimmingly. If China were to fail for Apple, that'd be a warning sign that current growth would likely slow, but it'd be a long time before an inflection point from growth to decline and a much longer time from decline to loss and a much longer time from loss to structural losses that threaten the company.
its not worth 600 bucks a share. some idiots in Wall Street want to make it 1000 a share. Its a joke. Apple is way overvalued and i dont even invest any more.
How do you determine the value of a share? What fundamentals do you use? EPS/P/E ratio? Structural factors likely to impede future growth? Cash on hand? Debt/equity? Capitalization rate?
You're not simply arguing that Apple is going to receive psychological adjustments that will compensate against a good run, you're arguing that it's deeply structurally overvalued by as much as 85%