For all you aapl traders Erin Burnett is going to have Julian Robertson commenting on aapl. The stock should move at least 5-10 dollars very qucikly on this news. Googling Robertson and aapl I see he has owned it for awhile, doubt he will say to buy it on the interview but who knows?
BIDU is at 92 times earnings, Apple is at under 20 times. How are they even comparable? A <20 PE is not a bubble, sorry.
But $500 billion is a drop in the ocean in terms of world investment capital. And where did you get the 40 PE number from? Apple is at 20.7 PE and that is not including their cash horde, if you strip that out then they are at <20 PE. For them to get to 40 PE the stock would need to go to around 650 and earnings stay flat. Yet earnings are growing rapidly. Apple could get to 1000 just by earnings doubling in the next 4-5 years and the PE going to 30, hardly an outrageous multiple for a growth stock in a bull market. Apple has sold at high PEs before e.g. at the 2007/08 highs it was at 40 PE, in 2006 it reached 44 PE. Stuff like AMZN is at huge PEs, AAPL is dirt cheap in comparison.