You know what they say — buy the rumour, sell the news.In a few months, the iPad may live up to the hype. And there’s the new iPhone coming this summer. And maybe some new Macs. And put all that together, and Apple’s stock doesn’t look insanely overpriced (AAPL).
But Apple’s stock is no longer the screaming buy it was a year and a half ago, when it plunged into the $80s on the global market panic. Then, ex cash, it was trading at the cheapo price of 7X cash flow.
Now, it’s a momentum stock, trading at above 15X. And that leaves it open to sentiment whiplash.
Is the long term fine?
Sure, the long term’s probably fine. But if we owned the stock and we were concerned with what the stock was going to do over the next month or so, we might be running for the hills.
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