Apple shares now trade at 22.4 times forward earnings and 5.4 times sales. The last time sales and profits were contracting at the current rate, those metrics were 12 times and three times.
But while physical sites to gamble are closed, it doesn’t mean the industry is dead. It’ll have to go through a digital transformation to survive, though.
The iPhone has been a wonderful business. Customers are loyal. The allure built a cottage industry of sycophants who believe Apple can win anywhere managers take the company. This simply is not true.
With global deflation of this magnitude and scope also comes plunging corporate earnings, widespread cancellation of dividends and a great bear market in stocks.
Investors are underestimating both the size of the addressable market and how much it will ultimately claim.
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