Many investors are puzzled about Apple’s stock price growth. In effect, Apple’s stock price seems to be greatly lagging its earnings growth. Horace Dediu, writing on his blog asymco.com, offers a possible explanation that makes sense to me. He believes that the market does not understand how Apple has produce and sold its blockbuster products, iPod, iPhone, iPad, over the past few years. Each of these products seemingly came out of nowhere.
A disruptive company is inherently unpredictable. Success and growth are unrewarded because there no understanding of the underlying causes of these phenomena and therefore there is no expectation of repetition.
The entire article is worth a careful read if you are an Apple investor.
Disclosure: I am long AAPL.





