Monday, February 13, 2012

The Apple effect on equity markets

Zero Hedge points to the astonishing impact of the performance of Apple Inc on the technology sector stocks. The graphic captures the earnings per share of S&P 500 technology firms with and without Apple.



Tyler Durden is spot on in his assessment of the concern arising from this graphic,

While ignoring Apple as a provider of 'wealth' is akin to Monty Python's "What Have The Romans Ever Done For Us?" comment, we worry that so much 'expectations' burden should fall on the shoulders of a company that relies on constant 'successful' innovation and constant low cost wages (no growth) to merely maintain current growth and earnings while facing constant and massive competitive threats from every side of its business.

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