Investment & Investing

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Tenderloin

Why, despite the fact that Apple has 6 x grown ad revenue in last 6m is there share price not doing more?

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NotThamesWater in reply to @Tenderloin

Possibly because tech stock pricing models are often based on *potential* earnings, rather than actual earnings, which goes some way to explaining their inflated earnings ratios.

Also, if the ad revenue was *expected*, it would have limited impact, as it would have already been priced in.

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Tenderloin in reply to @NotThamesWater

The earnings were unexpected and analysts seem to have been going wild for them.

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