Hugo van der Vlist

Earnings Power vs. Investor Sentiment

Regarding Apple, the red dots of the consensus estimate are still going up, but not as much as in the past year. However, at this moment in time it is very hard to predict Apple's earnings, because they have only just started in the phone business. It looks like they are doing extremely well in that department, so it is only logical that earnings estimates will rise in the coming year, something that's not yet reflected in the chart. And Apple has a massive amount of money to start another new venture if they wish to do so, like television, navigation or gaming. Don't forget they are doing very well in the PC business too. So I'm not too worried about the share price of AAPL.