Here's a clear explanation of what is *really* going on:
http://blogs.reuters.com/felix-salmo...-to-investors/
Quote:
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Apple is trading at an astonishingly low valuation, with a p/e ratio in single digits, because it has now become that animal investors like least: a slow-growing tech stock. Either one is fine on its own, and both slow-growing stocks and fast-growing tech stocks can support much higher multiples than Apple is seeing right now. But conservative investors, who like slow-growing stocks with high dividends, are constitutionally uncomfortable with the volatility inherent in the tech world. And technology investors, who are happy taking that kind of risk, want to see substantial growth. Apple, notwithstanding the fact that it’s one of the most valuable companies in the world, is falling through the capital-markets cracks.
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Tech investors are all about growth potential and *future* revenue growth (like Amazon) and Apple is now in Microsoft territory; a hugely profitable company, but so big that even massive growth in absolute terms looks small compared to its base size. Which is to say, stability smothers variability. Noticeable growth is hard but so is noticeable decline. Which is why they are dramatically increasing their dividends, to make themselves acceptable to conservative, non-tech investors.
As far as stockmarket gamblers are concerned, Apple is now officially boring.