What investors want to know is whether its stock will ever pop
The investors who follow the ups and downs of Apple’s (AAPL) share price on The Mac Observer’s Apple Finance Board often look with a mixture of envy and dismay at the price-to-earnings ratios of Amazon (81) and Netflix (76). Apple, by comparison, seems downright cheap with a trailing P/E of 15.57.
It’s a situation Jeff Fosberg, who posts on AFB as Mercel, interprets optimistically in the chart above. As he sees it, Apple’s share price is a coiled spring, ready to pop like a Jack in the Box.