In December 2007, Apple (AAPL) was trading with an enterprise value/revenue ratio of 6.492 and deservingly so because it had an average 3-year revenue growth rate of 43.72%.
Today, AAPL's average 3-year revenue growth rate is down to only 11.26% or approximately 1/4 of its average 3-year revenue growth rate in December 2007. Last quarter, AAPL grew revenue by an amount equal to the rate of U.S. price inflation, which means AAPL today has no more real growth!
AAPL should realistically today be trading with an enterprise value of only 2-3X revenue. How is AAPL currently trading with an enterprise value of 6.606X revenue!?
AAPL has replaced growth with buybacks to prop up its valuation. Over the past year, AAPL has spent $84.65 billion on buybacks to keep its share price artificially high. Warren Buffett is in on this scheme to try to keep the NASDAQ at artificially high levels and the gold price artificially low. With Bitcoin collapsing, AAPL is the one last safe haven alternative to gold that is keeping gold at artificially low prices.
We don't know the exact catalyst that will break the AAPL bubble/ponzi, but when it breaks we will likely see AAPL decline by 50% and gold simultaneously rise by 50-100%.
Besides AAPL, the only other NASDAQ stock trading at a record high as a ratio to the NASDAQ Composite is Microsoft (MSFT) and it is no coincidence that MSFT has spent a record $29.29 billion on buybacks over the past year.
Preparing Americans for Hyperinflation
