I'm not making a reference here to any of the world's great religions. Instead, this is a reference to the "religious" fervor that characterizes the holders of stocks of companies like Apple. Other examples used to include Starbucks, and Ben and Jerry's, when the latter was independent.
Apple always had a devoted "do or die" following. Its early problem was that its computer systems were considered "quirky," in an otherwise IBM-dominated world, meaning that it's following constituted a "fringe" minority of computer users. As such, Apple grew quickly to a certain size, until it had captured most of this minority, and then hit a brick wall in the early 1980s.
It earned a new "lease on life" with its 2005 introduction of the iPod. This was a product aimed at consumer, rather than business use. As such, it was not "capped" in this market by someone like IBM, meaning that the "hardcoreness" of its computer following worked to its advantage in the new sector.
The company then alternated between conventional (computer) products like the 2006 introduction of boot camp, and more consumer applications IPad. Not surprisingly, earnings and the stock price soared.
Apple has almost always enjoyed a high multiple of earnings. This reflects the awe-struck, "religious"-type following of its investors. Unlike some other companies, this may actually be justified. The reason is that the end users of Apple, unlike those of some other companies, embrace its products with a comparable "religious" fervor.
Is Apple a "Religion" Stock?
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.