Apple Is So Big That Financial Analysts Are Ignoring It

Illustration for article titled Apple Is So Big That Financial Analysts Are Ignoring It

Well, not quite. The Wall Street Journal reports that in order to understand how the financial market is faring, analysts are cutting Apple out of the picture because their dominance skews things too much. In fact, discounting Apple shows that the market isn't as strong as thought. Still: iPad 3, yeah! [WSJ]

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Unless iPad 3 sales beat analyst expectations (which is entirely possible), I don't see any huge jump in Apple next month.

Other thing to point out here is that with the way Apple's stock prices, at many multiples of it's earnings per share, Apple absolutely must continue to grow revenue at the fantastic rates it does. If they stop throwing out new products that people want to buy on day 1 (which is unlikely but not impossible) , then they'll be in trouble a lot faster, as their stock price is less about static revenues and more about maintaining and increasing the rate of revenue growth they currently are on. Investors expect Apple to continue innovating at the same pace, and I think we have a pretty solid example from how Apple struggled in the 90s as to what happens if they slow down just a bit.