Reported 2 months ago
Warren Buffett, who once viewed Apple as a value stock, may be reconsidering his investment as the company's market cap has skyrocketed to $3.2 trillion while profits have only doubled to around $100 billion since mid-2017. The company’s P/E ratio has surged from 16 to 32, drastically reducing the effectiveness of its dividends and buybacks, which have fallen to yields of just 3.6%. To achieve a 10% return going forward, Apple must significantly increase profits, a daunting challenge given its size and current market conditions.
Source: YAHOO