Except you forget that no company can grow forever.
I know this... the fine folks at Apple know this... but I'm not sure Wall Street know this.
I don't understand Wall Street... I just see Apple as a company who can make billions of dollars a quarter.
And then there are other companies who make ZERO dollars a quarter... but everyone is worried about Apple?
You forget.. If you make $1 profit, getting $2 gets you a 100% growth!!! Wow! Wall Street is impressed....
If you make $50B in profits, and get to $52B... Well, Wall Street calls you a slacker and punishes you.
Of course, if you scarf 95% of all profits... Like Apple...Well, there is only a way to grow, the whole market grows.
You're working hard for everyone else... Who truly ARE slackers and piggybacking on your back.
There is no way on earth that Amazon can EVER justify its current valuation.
Profit margins in retail are low, and if Amazon increases it, people will go elsewhere.
There is nothing special about Amazon.
Their new cloud thing; profits are low except in very specialized cases.
That boosts their revenue but not their profit... Again.
Apple works hard to keep margins up so everywhere they go, they make money.
To do that takes a lot of strategic foresight and thinking very long term.
It's probable that smart phone market will saturate, or smart phones will be good enough that people will keep them longer.... But, that will be a problem for everyone in the market, not just Apple. Others with no profit margin will be all killed when this happens and only Apple and a few others will survive.