straussy240, on 01 November 2012 - 12:33 AM, said:
Apple as it stands is one of the most 'valuable' companies in the world, but its very inflated and bound to fall don't you think?
There's absolutely not question about this - because of Apple's share price growth, fund managers have _had_ to get into it, which has, in turn, fueled Apple's share price growth. So while Apple's growth has been pretty bloody good, it's share price is still well above what it should be, were it assessed on fundamentals. The problem will be if it continues to bubble along and then corrects when there's a significant downturn in Apple's performance, as that'd lead to a double drop (the wind coming out of the bubble, and the adjustment for poorer performance, all at once).
I'm also of the mind that Apple's still a bit of a 2-3 trick pony, but that unlike Microsoft, people can switch out from its products much more easily, so when the sheen wears off, it won't be able to exploit a monopoly to keep itself afloat.
Sorry, anyone bored yet?