Because their "expected" future profit margins are significantly lower than Apple's.
Caveat: "Expected" does not mean fact. But it is understandable why investors believe this.
Caveat: "Expected" does not mean fact. But it is understandable why investors believe this.
Yes, this is what I said. Stock markets factor in future potential (a little too much I think) and not just current performance. Hence their growing diversion from reality.
It hasn’t been till the last year where Apple finally broke the market average and squeezed into a low 20 PE ratio. Fir comparison, Amazon hasn’t been below 60 in forever.