“Apple’s latest earnings report put some fear into investors, as earnings and gross margin guidance surprised many,” Bill Maurer writes for Seeking Alpha.
“Apple doesn’t feel indestructible anymore, but that doesn’t mean the best days are behind the company,” Maurer writes. “Apple can easily bounce back, but investors need to be reassured of some things.”
Maurer writes, “Here are some questions that Apple needs to answer over the next couple of quarters.”
• Are gross margins just returning to normal levels?
• What’s going on with the regular iPad?
• What are you doing with the cash?
• When does China Mobile get the iPhone?
“Right now, there is an incredible amount of fear surrounding Apple, and that provides a unique opportunity for investors. Every time we get an estimate or price target cut, it makes shares cheaper for all. I’m sure a number of places are happy now that these negative notes keep coming out. Every time the price drops to $500, more people can back up the truck and purchase more,” Maurer writes. “Those people aren’t as prominent when shares are at $600. Don’t forget, every time that an analyst cuts Apple estimates, it makes it easier for Apple to beat when they actually report.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]
Many investors are greedy bastards. No matter how much money Apple makes for them, they always want more, more, more and get as angry as rabid dogs when their ridiculous expectations aren’t met. Screw ’em!
How exactly does one “bounce back” from a record quarter?
Analysts need to shut it. Especially Wall Street analysts.
Apple does need to change anything, introduce anything, discount anything, to remain the most successful, most profitable Company in the world.
1. nothing
2. hoard it
3. never
This is the site full of blind speculation, clueless news interpretation, and TMZ style reportage. I wonder what Lindsey Lohan is up to after her stint as Liz Taylor.
Lindsey Lohan will continue to release “front-end-equipment” sucking videos…
You, sir, are going to have to pay many thousands of dollars to readers who just splattered their Cinema Displays with coffee! 🙂 Oh, the images that comment generated. My brain is fried.
Kind of old news:
“Officials said Lohan’s Porsche collided with a dump truck Friday morning on Pacific Coast Highway.”
Remember, this is all about instant greed and not investing in a company. Todays stock price only reflects how much trolls can control the market. Push the price down… BUY… Push the price up — SELL. repeat…
Google and Amazon are considered better buys than Apple??? Maybe the world will end on the 21st!!!!!! LOL
Just a thought.
got my 2013 Mayan calendar in the mail, opened it up: 12 blank pages. SELL! SELL! SELL!
You invest in a company because you think it’s profits will grow significantly. These 4 questions are important in that regard. Investors don ‘t put money in a company becsuse they like them or their products. And it is just simply prudent to wonder if Apple will be able to continue growing at this rate and keep their profits at this level. In financial terms, they have alteady been defying gravity for a long time. Every company in the history of man eho has been in this position has faced slowed growth and lower profits at some point. It would be crazy not to question if this will happen to Apple.
NO.
You use yardsticks like those used by stereotypical Wall Street Analysts to make a fast buck and to hell with whatever the company is *really* doing or how sound the company *really* is.
If you wan to maximize gross margins you put in the cheapest components and assemble them in the cheapest manner and don’t set up any infrastructure to support those end customers directly. This makes the greedy, get rich quick guys happy but eventually kills the company.
Apple is working differently. They are investing in the future of Apple! Not in the yacht of some Wall Street slug. They are even expanding manufacturing in the U.S. — not the place to manufacture if you’re trying to satisfy the greedy Wall Street bastards.
Tim Cook’s biggest paydays are still 4 and 9 years out (when his stock payments vest). He is trying to build a company that still will be great in 9 years. He’s not trying to line the pockets of those on Wall Street this week or next.
+1
Slowed growth does not mean lower profits. Apples growth has slowed but they still posted a record 4th quarter. They were never given a proper valuation for their astonishing growth in the past so to beat up the stock now based on “slowing growth” is nonsense.
I agree . Google doesn’t even earn 1/4 of apple . No matter how fast GOOGLE can grow . It doesn’t deserve the PE doubled of Apple.
Apple needs to keep on keepin’ on.
“Apple can easily bounce back, but investors need to be reassured of some things.”
I don’t know it is looking pretty grim for Apple right now. The Palm and the Zune never bounced back! I can see why these so called Analysts are worried. Will Apple even be here in 6 months? I doubt it. They got serious problems now. First they couldn’t make the iPhone 5 fast enough, and now the iPad mini might even be outselling the iPad!
This means Apple who used to hold the number 1 spot, now holds the the Number 1 & 2 spot. How the iPad managed to fall to the number 2 spot behind the iPad in such a short time is really disappointing. I doubt they can bounce back. Time to sell their stock.
1
[clubs a baby seal to death]
ROFLMAO
“The Palm and the Zune never bounced back!” What did the Zune have to bounce back from? It was stillborn, and incapable of being resurrected. And Palm have been on a downward slide since forever, not having clue one as to how to answer Apple and Android’s OS and hardware advances, and being in total denal all the while.
What a bunch of utter bullshit! I find it unfathomable that people like this actually get paid for these idiotic prognostications.
=:~)
@Chas,
Seriously true! No wonder Wall Street blew up! You are correct. Idiotic is the word.
Money doesn’t talk, it swears.
Sodden thought: How about gathering two or three of the popular posters hereabouts and have them go at it with several analysts on Jerry Springer. Talk about swearing. More bloodshed than an NHL game.
Apple does not need to provide any answers demanded by Mr Maurer. Apple will communicate with their users, their shareholders, and the press in whatever way they see fit, which has worked perfectly well for the life of the company. If Mr. Maurer is not content with that he can go suck an android.
Your Apple stock will be worth shit once I’m done with my plan to convert your country into a Communist Paradise.
I got that dream from my father who regularly beat his 5 wives and drank himself to death.
FOWARD YOU DUMB ASSES!
Why don’t you get a life?
Yes, seriously.
Hey, Emperor Shithead, go lick a dog’s ass ’til it bleeds.
Its killing you isnt it? I love it. Thanks for letting us know.
Here’s what Apple really needs… for all idiots out there to simply shut the fu*k up!!!!!!
I swear I’m ready to puke at all the shite that is endlessly being spewed about the financial situation of Apple.
Answer? Like an interrogation? Hardly. However, they will demonstrate as they have done quarter after quarter.
One insider tidbit: and remember you heard it from me–Apple is saving up its cash hoard for one more huge purchase — Earth! Remember, you heard it from me first.
Apple has answered all my questions. I sold at 589.00.
Bought back in at 514.00. Today back up to 530.14.
Why not shut up and buy in? Oops you were asking questions when you should have been buying on the dip.
How bout those terrible iPhone sales to China, Sike!!
@ Mike: psych, not “Sike”
– the other Mike
Anal-ysts are operating at a sewer-level moral standard, they know they are inferior compared to Apple’s higher moral standard. Anal-ysts feel dick-short and they will try their best to destroy Apple.
Sell.
Talk down stock
Buy back at lower price.
simple. Crude manipulation of market is alive and well.
Why does Apple have to answer questions? I think Amazon needs to answer some questions, starting with which analysts on Wall Street did they pay off to justify their P/E, which today is 3,098 compared to Apple’s 12.
“Don’t forget, every time that an analyst cuts Apple estimates, it makes it easier for Apple to beat when they actually report.”
– Unfortunately, Analysts have 2 numbers. Their “estimates” that they are paid for (and seems entirely useless), and their “whisper number” that AAPL is judged by when earning are released. Why is there a colossal disconnect between the two numbers???
If their estimates are so low, why then are their “whisper numbers” so ridiculously high???
Exactly!!!
Nuke wall street, no caps on wall street out of intended disrespect for profit motivated asses who live and die for the almighty buck.
Why would Apple NEED to answer any of these questions ?
Perceived value (i.e. market value) is irrelevant to a company with no debts and loads of cash in the bank (mostly overseas btw).
Given that share prices are completely unrelated to the company’s performance, it would be futile to do anything for or answer an questions from people who are merely speculating on an arbitrary value that moves solely on the basis of their collective speculations.
I don’t get it.
First people screams that Apple needs a smaller iPad to compete with the Android 7″ tablets. When they produce one, a 7,9″ people’s ask whom it’s for. People and analysts wanted Apple to price it even lower than what they did, almost half if what it costs now. And now they are worried about the gross margin on a lower priced tablet…
I think this shows that most people and analysts does not get Apple and should not own the stock.