Dr. Racket wrote:
la gente esta muy loca wrote:
At over 30X earnings and $2 trillion in value, Apple needs to create opportunities worth hundreds of billions for shareholders to now justify the asking price. "
That's boomer talk if I've ever seen it.
You know what's up 20%? Nokia. You know what's up almost 200%? BlackBerry. You know what's up almost 2000%? GameStop. Fvcking GameStop. A brick and mortar retail video game store operating out of commercial real estate locations. 2000%
This isn't the kind of market where you need justifications for your value or market cap.
Ummm... ever heard of Sonic Foundry, JDS Uniphase, CMGI, Qcom; or going back further in time Polaroid ? The second best line in Woody Allen's Sleeper is when Miles Monroe is finally convinced he is indeed in the future, "I bought Polaroid at seven, it's probably up millions by now!" Instead of WSB you had Raging Bull, Silicon Investor and Yahoo message boards. Instead of posters like u/DFV, you had Jonathan Lebed and Tokyo Joe. Joel Greenblatt discovered Michael Burry on Silicon Investor!
Everything old is new again. The big ? , is this January 1999 or January 2000.
When long term rates rise it will be due to either economic growth is picking up or inflation is accelerating. If it's the latter, and it's significant, the Fed will probably raise rates, it's in their DNA. Even if they don't the market will still sell off and the Fed will be left at the station. That's a position they want to avoid at all costs.
A nice primer on interest rates and stock prices by Aswath Damodaran.