It’s just jaw-dropping to me. We’ve learned nothing.
Apple is going to sell billions of dollars in bonds. The Federal Reserve is going to buy them with Powell-bux. This, from a company with $200 billion in cash laying around. And what are they going to do with these government-supported purchases? Buy back their own stock. Absolutely vomit-inducing. And, thus:
In just a few months’ time, this company – – the largest in the world, and a slow-growth, lumbering giant – – is sporting a P/E of 34 and has more than doubled in price. This would make sense if Apple was growing 70% a year. But it isn’t. The people of Earth aren’t going to suddenly buying five iPhones apiece. It’s just going to keep growing a few percent every year.
Yet none of this matters, since buyers see fit to keep bidding AAPL to the ionosphere. We’re just a few percentage points – – that is, just one more good day for the stock – – to become the first $2 trillion company ever.
Seems hard to believe that this is the same company that almost went bankrupt back when I was running Prophet.net.
