Faculty News

Professor Aswath Damodaran explains why he doesn't see Apple as a growth company now

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Excerpt from CNBC -- "'Don't [buy Apple stock] because you expect it to become a growth company again. It's not going to become a growth company,' Damodaran told CNBC's 'Squawk on the Street.' 'It's really more like [tobacco company] Altria — it's a dividend-paying, solid cash cow. I mean, people are as addicted to their iPhones as they are to cigarettes.' It might take a while for investors to swallow the transition from growth to value, Damodaran said, comparing Apple to fellow mature tech company Microsoft. But with around $200 billion in cash, Apple could keep paying dividends for the next 25 years and not feel the pain, he said."

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Additional coverage appeared on Barron's.