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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Art Bechhoefer who wrote (170674)6/9/2014 4:23:44 PM
From: Ryan Bartholomew  Read Replies (1) | Respond to of 213173
 
If there is one lasting psychological effect, it's probably that the P/E will go up to a level consistent with other tech stocks that have similar growth rates
However lasting, PE is influenced by perception of future earnings (and it's growth). Investors - right or wrong - have recently presumed that AAPL earnings growth will be modest. Someone like me who thinks it will contract eventually logically won't pay a high price (in terms of PE) to own the shares, while many on this board who are expecting notable earnings growth see the current PE as cheap.