Like many people, I am optimistic about AAPL.
I bought about 5 years ago and obviously the returns are really wonderful. I made a prediction in 2001 and everything turned out great.
But at this point, the valuation is still based on what happened in recent financials. This is how Wall Street values companies.
Wall Street is extremely sucky at predicting the future strategic moves of companies, and especially, the value of intellectual property a company is NOT using today but could use next year.
AAPL was at one time valued at only the cash Apple had in the bank!! The patents, sales and innovation were valued at absolutely ZERO!!!! This is why I bought in.
Today, the same factor is still somewhat true. Apple is not a coal mining firm. But analysts persist in valuing it that way. I see it a bit differently. What we have is a gamble. Apple could grow into a mammoth company by sales, especially regarding cell phones. It is transpiring that every man, woman and child in a number of countries will have a handheld computer / phone / entertainment device. Should Apple become the leader of that, and also grow in industrial computing, Apple will be one of the world's top firms by value (in the 100s of billions). This is because of (1) Apple's intellectual property and (2) its efficient marketing/sales of those ideas.
AAPL's position with consumers is exceptional. Their reputation in industry and government is growing by leaps and bounds.
There is no reason why, at the peak of this rise, Apple will not hold 20% of the US PC market (among comsumers, maybe 40%) and perhaps 5% of the phone market (even worldwide). When that happens, AAPL will be worth at least $250, one of the world's largest companies at $200 billion market cap. I believe it is somewhat likely (40%) that Apple will achieve this. With that in mind, AAPL is a decent buy at $90. That is why people are bidding it up that high.