Frazell Thomas, on 20 August 2012 - 18:43, said:
This is nothing more than Tulip Mania
. Investors aren't buying the underlying company on sound investment principals. Instead they are frantically rushing to buy into house in the sky mania.
It's true, I planted a Steve Jobs in my yard last week, once he gets some branches on him, I'll be rich!
One of the best supply chains and design teams in the industry, vertically integrated, sitting on piles of cash, and a major influence in every industry they've entered (audio, mobile phones, and probably soon TV). You can argue they're overvalued, but they're hardly tulips.
vcfan, on 20 August 2012 - 19:09, said:
market cap doesnt actually tell you what the real value is. yes the stock price is high, maybe because of some excitement of some of their products, but you have to remember they only have a few products they are banking on,and these are electronic gadgets that people use to play games on, not some life dependant technology. one **** up and it could bring them back down to irrelevancy. one **** up and the market cap could drop to extremely low levels like they had years ago.
Who would you rather invest in, a life saving tech company with incredibly low profit margins thanks to research costs, regulations, and the fact that you can't price gouge on life saving tech, or Apple, with huge profits margins and huge demand for their products?