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

1 Faculty News January 27, 2016 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/uat_027305.jpg?itok=Ipx0jiaQ)>

Excerpt from [CNBC](http://www.cnbc.com/2016/01/27/apple-earnings-gave-bulls-a-gut-punch-analyst.html) -- "'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](http://www.stern.nyu.edu/faculty/bio/aswath-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."

[Read more](http://www.cnbc.com/2016/01/27/apple-earnings-gave-bulls-a-gut-punch-analyst.html)

Additional coverage appeared on [Barron's](http://blogs.barrons.com/techtraderdaily/2016/01/27/apple-its-pfizer-no-its-altria-all-kinds-of-metaphors-for-no-growth-fears/).