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Apple is a great case to bring this up. Like I said, "usually". In this case, you managed to pick the stock that is trading currently at a 16.85 P/E, which is
by cbanek 9y ago
Apple is a great case to bring this up. Like I said, "usually".
In this case, you managed to pick the stock that is trading currently at a 16.85 P/E, which is about half of GOOG and MSFT. It's even less than the S&P average (25.73). And Apple has a huge amount of cash in reserve overseas.
If you look at tech hardware, such as Apple, Intel, TI, TSMC, QCOM, they are traded at a much lower P/E multiple than software companies. nVidia and AMD are the darlings of that sector now and are pushing valuations, but the whole semiconductor sector has had a huge run up in prices.
And yes, I'd say that is partially do to having a supply chain, and a lot of physical capital, such as semiconductor fabs. But that is the kind of capital that you can more easily sell off than software.
- nojvek 9y agoTesla isn't making just electric cars. Most people don't realize how disrupting self driving cars can be. If they can get an Autonomous car before anyone, that enough makes a lot of people switch over. Not only that, they can roll out a large fleet of cars and provide transportation on demand. This means eating lunch from Uber, Lyft, UPS, Fedex, Food delivery, Hertz, Avis e.t.c When iPhone came out, Blackberry and Nokia assumed it was an iPod (music player) that could make calls. In reality it was a computer that could fit in your pocket and do 100's of things. Tesla is not just an electric car company. It's a personal computer on wheels. Their software is far ahead of any other car company. Their hardware is a lot simpler and efficient.