Here's a measure of how much Wall Street has beaten up shares of Apple over the past three months, as the company's stock plunged from a record high $705 to today's close of $451 a share:
The measure is the price-to-earnings ratio, or P/E. In general, a high P/E suggests investors are expecting higher earnings growth in the future compared to companies with a lower P/E, according to Investopedia.
Key performance numbers, based on today's closing prices:
10.14
AAPL's P/E
11
GCI's P/E
-37%
decline in AAPL's price, last three months
8%
increase in GCI's price, last three months
[Data: Google Finance]
Lets keep things in perspective here:
ReplyDeleteTODAY, Apple's price dropped $63, a drop in market cap of just under $60 billion. Apple also pays a dividend of $10.60/year, meaning the company returns $10 billion A YEAR to stockholders.
TODAY, Gannett's market cap is $4.7 billion. GCI pays a dividend of 80 cents a year, meaning the company returns $184 million a year to stockholders.
In other words, every six months, Apple pays out enough money to buy EVERY outstanding GCI share, with enough left over to pay disability retirements to Gracia and Maryam if they both slip getting off the plane in Davos.
It's comments such as this that make wish there was a "like" button.
DeleteGannett has far more apple polishers.
DeleteJust nine years ago Gannett was still bigger than Apple. Now Apple has enough CASH to cut a check tomorrow for a couple of dozen Gannetts.
DeleteJim is a knob polisher.
DeleteOK, feet held to the fire, who are you betting on for future success and longevity...Gannett or Apple?
ReplyDeleteEnough said.