“The recent slide in Apple (AAPL) shares can be attributed to one thing: Steve Jobs playing games with expectations. Now it is coming back to haunt shareholders. Here is how it typically goes: Jobs gives guidance that he knows is too low and then Apple blows it away and the stock surges. Analysts have relied on those expectations to make their estimates and have traditionally been too low,” Todd Sullivan writes for Seeking Alpha.
“Not being idiots, they caught on to the game and have ratcheted their expectations higher than they expect Jobs to ‘guide them,'” Sullivan writes.
“A funny thing happened this week. Apple guided analysts lower than what they thought the ‘low ball’ expectation would be… The problem is that people just do not believe what Jobs is telling them,” Sullivan writes.
“In the current environment, indecision equates to fear and shareholders are suffering,” Sullivan writes. “If you are going to give guidance, conservative is one thing but playing games like Jobs has with it is just wrong because eventually it comes back to bite you. No one can doubt his genius or showmanship, it was hubris that was his downfall once and is hurting him again now.”
Full article here.
[Thanks to MacDailyNews Reader “MacVicta” for the heads up.]