“Following the dizzying ups and downs of 2012, investors may be hoping for a little less drama from Apple stock in 2013,” David Zeiler writes for Money Morning. “While 2013 figures to be a very different year for Apple Inc. (AAPL), don’t plan on the ride getting much smoother.”
“With 2012 annual revenue at $156.5 billion and annual profit at almost $42 billion, Apple’s biggest challenge heading into 2013 is figuring out how to add meaningful growth,” Zeiler writes. “For example, when Apple reports earnings on Jan. 24, you won’t see a repeat of last year’s incredible December quarter year-over-year revenue growth of 73% and profit growth of 118%.”
Zeiler writes, “Indeed, Apple stock throughout 2013 will face difficult year-over-year comparisons as each quarter goes up against 2012’s record numbers. AAPL is now officially a victim of its own success.”
Read more in the full article (subscription required) here.
maybe…
Oh Really? Apple will OWN this quarter and blow away last years earnings. Oh ye of little faith!
Record numbers from record product intros – iPad mini, Retina display Macs, the brand new iMac and Mac Mini, and 11″ Air, significant updates to iPad, MacBook Pro, MacBook Air, Mac Mini, iPhone and iPod Touch. Breakthrough improvements in software from iTunes 11, and iCloud implementation.
I’m pretty sure I missed something. If we look at Apple today from the perspective of the introduction of the iPhone just 5 1/2 years ago, the company has been nothing less than transformed.
Now there is talk about Television, there’s still the AppleTV which definitely has the potential to become something much more. There are any number of new products that Apple is uniquely qualified to invent, design, develop and market to millions of excited buyers worldwide.
Moving even some of the manufacturing to the USA will add appeal for millions of potential new Mac owners..
What doesn’t really make very much sense when talking of stock prices is that AAPL is still very much a growth company. Dow stocks have 10 multiples. Tech growth companies have multiples of 20-30 or more — based on the expectation that earnings will grow.
In spite of its position as the most valuable company in the world, there is easily room for the company’s stock to be 50% higher and still be an excellent value. With dividend payouts, to boot.
What if ?? Apple does beat …
” last year’s incredible December (2011) quarter year-over-year revenue growth of 73% and profit growth of 118%.”
Will AAPL go Up? Maybe some but
negative news always gets it back down.
Buying in the low’s now 🙂
I do think AAPL is a great American company!
So what kind of background does David Zeiler have? It is not in private equity which is taught at major universities like Emory University. Here is his background: Loyola College in Maryland, BA, English/Mass Communications. Hang on, more bullshit is to come from those who have no academic background in private equity or economics.
Anal…yst…. “Stupid is as stupid does!”
Analyst use stupid numbers to make smart things look stupid.
Yes the laws of big numbers is against Apple. Otherwise it would end up with sales larger than the GDP of THE WORLD…..
If we just look at sales, I think we can keep a pretty heads up approach to how Apple is doing.
Now if you want to forment numbers for Apple stock so you have more chance to buy low and sell high…. or sell high… and buy low….. then 2013 looks like a good year !!!
Just a thought.
As one of the biggest companies out there, you can’t blame all the Wall St. folks who think they are smarter than everyone else to want to find an angle and play it. They do so with every stock they think they can game. Volatility means it’s game on. It’s not anything about Apple per se, its just about good ol’ fashioned $ suckers and greed.
Credible view – the law of large numbers begins making it difficult for Apple to continue posting blockbuster growth quarter over quarter or year over year. It’s a business/financial model issue and not product specific. That’s why good news on specific product sales such as iPhone 5 in US/China or iPad mini are met with yawn.
Investors are discounting strong current quarter sales as a one time event and anticipating seasonally weak, slow growth quarters that follow. This requires Apple to not only post strong earnings, but also strong guidance to gain any traction. It’s a tall order to expect Apple to do both. No wonder investors continue to sell into any rally.
Yup.
This is true, the days of 50% growth are soon to be over. Fortunately, the stock is priced for 0% or negative growth, Apple will continue to make tens of billions of dollars, grow their dividend steadily and hopefully institute a more aggressive buyback program. The future is still bright for shareholders, especially at the current valuation.
Zeiler writes, “Indeed, Apple stock throughout 2013 will face difficult year-over-year comparisons as each quarter goes up against 2012′s record numbers. AAPL is now officially a victim of its own success.”
Really? And how did Apple do pitting 2012 against 2011 numbers? 2011 against 2010? 2010 against 2009? And so on…
What’s different today except that FQ12011 had 14 weeks versus 13 weeks for 2012? Complete BS by a know-nothing.
Apple was never valued properly for the growth it had in previous years so why should the stock take a hit if it only grows at 25%? How many companies grow more than that?
A retina iPad mini with phone would devour the Galaxy Note.
Entry into enterprise seems to be forgotten …..and all the college grads with nothing but Apple equipment!!!!! SJ’s dream to change the world is not far off. Balmer put your dumb thumbs into that!!