That’s a dumb bet, says Katy Huberty, given 14% growth in the markets Apple serves
FORTUNE — The chart at right, posted before Apple’s (AAPL) shares lost another $12 (2.5%) Tuesday, comes out of Morgan Stanley’s “What’s in the Price?” stock analyzer. It suggests that at Monday’s $480 a share, the market was pricing in long term earning growth for Apple of -4%.
Anything is possible, of course.
But in a note to clients early Tuesday, Morgan Stanley’s Katy Huberty characterized the situation as a “free option” on Apple’s track record of innovation.
Not that the revenue growth will slow down or that revenues will not increase. But that revenues will actually decrease!
There is simply no rationality in wall Street when it comes to Apple.