Apple Stock May Be Overvalued

Apple Computer is a company that has well-financed competitors and also has a high share of a market that is heating up. Investors often shy away from such companies according to in their analysis released Thursday.

The mood in the industry by some has turned from reasoned optimism about Appleis success to historical analysis of previous market leaders such as NetScape, WordPerfect, and Novell Netware who succumbed to well financed competition. The article pointed out that "Microsoft has vowed to spend hundreds of millions of dollars on its competing Zune player. Whether they will be successful is open to question, but defending its turf will certainly cost Apple something." In addition, the analysis links to a story at Playlist which claims that the music industry feels screwed by Apple. That aspect was mentioned on Wednesday at the iPod Observer.

Because Apple is now in the crosshairs of so many companies and because the stock price has almost doubled since the summer, the conclusion was that Appleis stock price is overvalued.