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David Einhorn covers familiar territory, telling CNBC ZIRP is counterproductive and the Fed...

David Einhorn covers familiar territory, telling CNBC ZIRP is counterproductive and the Fed should hike 200-300 basis points. Amazon (AMZN): "It's very hard to compete against someone who doesn't feel compelled to make a profit," he says, adding that he's not short. Apple (AAPL): Substantially undervalued and headed for a $1T market cap.
Comments (14)
  • timetosave
    , contributor
    Comments (35) | Send Message
     
    The 1 trillion market cap comments always make me laugh. It will never happen.
    10 Jul 2012, 08:45 AM Reply Like
  • kmf
    , contributor
    Comments (63) | Send Message
     
    Is there something wrong with the trillion dollar level?
    How long ago was 1 billion cap said to be unattainable?
    10 Jul 2012, 09:25 AM Reply Like
  • IGUART
    , contributor
    Comments (162) | Send Message
     
    Wouldn't say never... they also said Apple would NEVER be any more then a niche company. And Apple's been laughing all the way to the bank! Taking a few savvy investor along with them I might add.
    10 Jul 2012, 09:27 AM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    See you in 2013.
    10 Jul 2012, 09:31 AM Reply Like
  • earlalbin
    , contributor
    Comments (97) | Send Message
     
    That's exactly right and burying the nay sayer shorts. The person who thinks it's isn't going to happen, put your money where your comment is, short Apple. Come on short Apple. I'm betting it will happen, my opinion, my money.
    10 Jul 2012, 10:48 AM Reply Like
  • Sacto_Joe
    , contributor
    Comments (255) | Send Message
     
    Actually, it's going to happen next year some time. Apple's yoy EPS by mid-January will be about $60/share. Its 2013 EPS will be at least $80/share. At its present P/E of 15, that's a market cap of (80x15=) $1,200/share.

     

    Read 'em and weep, timetosave....
    10 Jul 2012, 12:24 PM Reply Like
  • timetosave
    , contributor
    Comments (35) | Send Message
     
    And I'm still laughing!
    29 Jan 2013, 08:23 PM Reply Like
  • yanchaville
    , contributor
    Comment (1) | Send Message
     
    He didn't say AMAZON was not interested in making a profit...he said GOOGLE....important difference!
    10 Jul 2012, 09:44 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1564) | Send Message
     
    Are you high? why would he be talking about Google? Einhorn has spoken publicly about Amazon before....their increasing revenues but stagnant profits.
    10 Jul 2012, 10:16 AM Reply Like
  • Ken Sanders
    , contributor
    Comments (64) | Send Message
     
    Einhorn is right about both - Apple has loyal customers, high margins, big cash, huge opportunities in China and Brazil, and unrivaled vertical integration that is a high barrier to entry.. A trillion used to be real money - no longer....
    Amazon, on the other hand, seeks growth at the expense of profits, their margins keep declining, Kindle Fire is a bust, and they are being attacked directly by new major well-funded competitors, including Google and Apple... And now Amazon wants to build a phone? I predict they will actually post a small loss in Q2 - we'll see how the market reacts...
    10 Jul 2012, 12:39 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1090) | Send Message
     
    AAPL might hit a trillion dollars some day, but not in the current economic climate. Once it hit a $600 billion market cap it bounced off it like it ran into a wall. I'm long AAPL, but a trillion dollar cap is way out in the future someplace.
    10 Jul 2012, 12:52 PM Reply Like
  • robertswinter
    , contributor
    Comments (2) | Send Message
     
    Its real simple. $1T is just a number, nothing magic about it ... as long as the fundamental of the company support the value (and my guess and many others who have been accurate to date believe they will in the near term, i.e, 12-18 months). As an example, if for this quarter they hit some $12 eps then their TTM P/E is around 13 (the same as March 2009 the height of the economic crisis and that does not even take into account their cash which would make it a P/E closer to 10). (Note: the average tech company has a P/E of 18 with less past growth and as many believe less intermediate-term or better future growth.)
    10 Jul 2012, 01:10 PM Reply Like
  • Ken Sanders
    , contributor
    Comments (64) | Send Message
     
    Exactly right! If humans had eight fingers instead of ten, we wouldn't be so hung up on a base-10 number like a trillion dollars... The actual number is irrelevant, it's all about growth and relative value...
    10 Jul 2012, 02:17 PM Reply Like
  • bob depala
    , contributor
    Comment (1) | Send Message
     
    If aapl split there shares, $ 1 trillion cap is easily reachable.

     

    Bob Depala
    11 Jul 2012, 07:22 AM Reply Like
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