[Rich76_911s]

A company is only worth the present value of it's future cash flows. P.J. has a 32% revenue growth rate for the next year, what are the projections for the next decade? It's not possible for Apple to grow at this high rate for eternity. When do they project a slowdown in earnings growth?

There is no arguing that Apple has been very innovative and successful at marketing it's products in the recent past. At the same time you can't really argue that all thier product lines are facing stiffer competition today, than they did just a year ago.

My fear is that the projections for apples growth rate over the long term are not being done conservatively. They are being done expecting the company to dominate the technology market for a long time. I'm not saying these expectations are going to be wrong. I'm just saying I would be cautious when the whole world is expecting greatness for such a long timeframe. If history is any indication, when Wall Street starts pricing in perfection for eternity it is usually a good time to be cautious. All market Fads do come to an end, and we can't argue that part of apples success is based on the fact that it's products are "in style."

That said I would, and probably did, say the same thing back when Apple was $200 a share, and analysts were making crazy predictions back then too.