Mr. Market Gives The Nod To Yahoo Over Apple: The Craziness Of Valuations

Wall Street has basically given up on Apple. The stock has tanked more than 40% from a peak of $702 last September to a new low of about ~$406 this morning. The stock is also now trading at a price-earnings ratio of 9X.

By Stephen Rosenman:Despite earnings and revenues growing over 100% and 80% respectively, Apple receives a 15 PE multiple. Is the market pricing Apple correctly? In my last article, I compared Apple with high PE stocks.

By Rocco Pendola:A shareholder took Yahoo (YHOO) CEO Carol Bartz to task at the company's recent investor gathering. While not a perfect presentation, the stockholder made several excellent points.

The Mole submits: U.S. stocks rose for a second day, erasing earlier losses as speculation the Federal Reserve will take steps to spur lending and an increase in building permits sent homebuilders and commodity producers higher and in doing so brushed off a nasty housing starts number and underwhelming numbers from Goldman Sachs (GS).

Michael Comeau submits: Yahoo (YHOO) has had an interesting week as far as weeks for Yahoo! go. CEO Carol Bartz dropped in for a disastrous interview at the TechCrunch Disrupt conference on Tuesday before rebounding back to par in a relatively tame analyst day on Wednesday.

Carol Bartz reportedly calls Yahoo Chairman Roy Bostock and his board a bunch of 'doofuses' two days after he fired her over the phone. Rumors center on Ross Levinsohn, a Yahoo vice president, as her replacement.The drama following the ouster of Yahoo Inc.

By Stephen Rosenman:Apple's (AAPL) PE has fallen off a cliff.Long-time Apple owners recall when the stock was valued at a richer PE of 250. Why, only four years ago, Apple traded at almost a PE of 50!Now 14, Apple's PE has taken quite a tumble! Yet, Apple shares the growth characteristics of companies with loftier valuations.

Jett Winter submits: Ever wonder who’s really winning in the war of Apple (AAPL) vs. Google (GOOG)?