..AAPL trading almost at all time highs with a market cap of $3.51 Trillion!
...a large part of this is driven by two factors (1) corporate buybacks and (2) passive ETF fund inflows - which requires buying into the stock given its weighting in the S&P500.
...continued buying has driven its stock price into a valuation zone outside the realm of normality given its growth prospects. Sooner or later, the wider market will start seeing the poor value they get from the price they are prepared to pay. The price equilibrium will dictate such that at some high price point, demand will exhaust and price will mean revert.
Apple "investors" must have a screw loose, paying an historically overvalued 36 P/E for this no longer innovative, no growth company. Q3 results from Apple's key telephone carrier sales channel do not bode well for iPhone sales in Q3 or in the current quarter (Q4).
Following Verizon's report of sharply lower Q3 wireless upgrades ("down over 10% year over year") & wireless equipment revenues (-9%),
AT&T out this A.M. with a similar story.
Consolidated Financial Results • "Revenues for the third quarter totaled $30.2 billion versus $30.4 billion in the year-ago quarter, down 0.5%. This was due to lower Business Wireline service revenues and declines in Mobility equipment revenues driven by lower sales volumes." AT&T's wireless equipment revenues fell 5.7% Y/Y to $4.5B Here's a table from AT&T showing big Y/Y declines in wireless net adds.
