Apple Inc (AAPL)

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06:59 AAPL Apple shares look expensive, but does that matter? - WSJ column (38.29 )

The WSJ's "Ahead of the Tape" column discusses Apple, which is scheduled to announce results today. On a valuation basis, even after accounting for the more than $12 a share it has in cash, at $38.29 the stock looks rich compared with other computer makers. This is worrisome because Apple, with its stores and design-oriented products, is looking less like a technology co and more like a consumer-electronics concern. Consumer-electronics co's have lower profit margins and face fiercer competition. So their stocks tend to carry lower valuations than do technology shares. At the same time, when Apple bulls close their eyes, they see Christmas stockings laden with iPods. With rumors flying that Apple will launch a more-powerful version of the music player ahead of the holidays, that vision seems unlikely to be dispelled.