Apple is relying on the App Store for its future growth, now that smartphone sales are contracting.
Actually, driven by its 2.55 trillion market capitalisation, Apple has become risk averse.
The main holders of Apple's stock are pension funds, large global asset managers and Berkshire Hathaway, the business conglomerate controlled by Warren Buffett.
Since pension funds, large global asset managers and endowments are generally risk averse, this strategy translates into Apple's risk aversion.
Apple Inc has become a corporation, far away from the risk taking technology startup ways founded by Steve Jobs and Steve Wozniak. Even when it was valued at hundreds of billion of USD, Apple was taking big, significant risks under Steve Jobs. Which created the 2.2 trillion USD of wealth Apple Inc is now worth.
Project Titan or the electric vehicle manufacturing project of Apple, kept in secret is Tim Cook's attempt to break the status quo and prove that Apple can still innovate.
An Apple television set would be an interesting consumer electrons based attempt for Apple to return to its technology innovation glory.
According to my calculations, Apple's intrinsic value is 1.4 trillion USD.
Yes, I know that by the Price/Sales ratio of today standards, especially for technology companies, 1.4 trillion value for Apple seems low.
But, in my opinion we are in the biggest technology bubble in history driven by central banks's money creation and yes, some of the greater innovations in the history of the world. Many analysts and investors share the opinion that we are in another dot-com bubble.
Nasdaq has to fall from the 16 027 points of the previous peak to 7 000 points for the technology companies' valuation to be long-term sustainable and reflect the true value of the companies.
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