“No one complains about volatility when it works in their favor,” Chuck Jaffe writes for MarketWatch. “A 1,000-point loss on the Dow Jones Industrial Average might panic investors, but a 1,000-point gain — the same percentage move, just in a different direction — would not ring their alarm bells. Likewise, few people blinked when Apple was reaching a 52-week high above $700 per share last year.”
“No one complained, because not only were they benefiting from the stock’s run, but return numbers for the S&P 500 and other indexes paled when presented with Apple’s benefits removed. Quarter after quarter, you could find graphs of the S&P’s earnings versus the previous year, and more than half of the growth for the 500 stocks was created just by the biggest one,” Jaffe writes. “Now, however, the worm has turned. Apple is down roughly 40% since it peaked last fall, and it dropped more than 12% just on Thursday alone.”
Jaffe writes, “‘If this recent drop-off has some investors worried, then maybe they should look at overlap and portfolio concentration,’ [said Geoff Bobroff, an industry consultant in East Greenwich, R.I.], ‘but long-term they still have big gains to show, and they would not have wanted to miss out on Apple’s run-up, so maybe it shows them that sometimes you have to take the bad with the good to get the best long-term results.'”
Read more in the full article here.
MacDailyNews Take: Shut up, Chuck.
No one was worried because the stock wasn’t trading at an extreme multiple when it was $700 a share. What don’t these jackasses understand about stock valuations? Stupidity abounds.
it will probably hit 400 or so then spring board back up to 550 or some nutty change over a few weeks
I agree completely, Pete.
The guy is basically saying that we don’t complain when GREAT PERFORMANCE makes the shares go UP and we should not complain if GREAT PERFORMANCE makes the shares go DOWN.
How do these prats make it to such positions of influence?
A 1,000-point loss … but a 1,000-point gain — the same percentage move
W.R.O.N.G!!!!!!!!!
This assclown needs to go back to elementary school and relearn percentages.
With an inability to do basic math, no wonder the financial markets and their lackeys, the financial media, are so fucked up!
Agreed. Record profits, so a $50+ share drop. If I add 2+2 and “predict” 5, I will be blamed as an idiot, as should be. So why are these “analysts” whose “estimates” turn out to be wrong not just dismissed as incompetents? Or is it more than incompetence? They are the cousins of those who advocating lending money to people who couldn’t pay it back. Fortunately we can be sure the SEC will investigate. Oh wait, the SEC watchdogs are also cousins.
Absolutely shut up chuck! The stock is trading at a p/e of 10.2 now, before taking the cash into consideration! This recent decline is being driven by greed and unfounded so called facts! The numbers for apple are staggering, regardless of the so called apple missing the street projections by $20m, so insignificant when they’re racking in $4.2b a week! Unfortunately, investor analysis chose not to show the full picture and the news reports captions from them which many unsophisticated investors are influenced by! Apple is in great shspe! They’ve produced an ecosystem that works better than any other ever scene and will guarantee its health! Watch these same greedy, cheating large hedge fund investors drive this thing right back up where it should be in the not to distant future, and they do it again with headlines that arent really reflective for the run up, but they’ll do it again because they know they can! A shame for the honest investor trying to invest based on true financial / business facts but doesn’t have the capability and time to read between the bullshit
Yes. What I have been repeating all along.
WS cheats, liars and manipulators. They know the casual investor does not have time to do real research and just reads the headlines lately. That group is what the WS manipulators love, they can influence them good or bad.
Some one needs to nuke WS and start over with some stricter rules.
WHY do olks that have never worked a day in their lives, inherited their food money and sits in his padded-cell office in a MURDOCH-OWNED FINANCIAL RAG, get to say ANYTHING about what we should or shouldn’t do????
Go away fat man, nobody wants you OR Murdoch’s kind out here.
Yes, another clueless ass. Maybe he could join the others on Apple’s Board.
$700 a share is only a number if you don’t look at anything else.
Note:
• AAPL’s Market Cap is now $413 billion and Apple’s last filed Total Asset is HALF that at $196 billion.
• Apple has 1/3 of it’s Market Cap in cash in the bank.
• Someone will soon be able to buy Apple with Apple’s assets and sell off what they don’t want if Apple doesn’t buy it’s shares and defend it’s investors and Apple.
• This is nuts!
Again, clueless ass and idiot!
FU** Y** Chuck Jaffe.
Stop whining?! What about open manipulation of the market today when at closing 800K shares ($350 million) were dumped in the closing moments? Guess we should just lie back and enjoy the ride???
Most would agree that Apple is like no other company. It has such a vast amount of resources that it is financially (completely) independent. Maybe they need to grow cash a bit more…maybe to $200B cash. Thats debatable. But once they reached a “good” amount ($137B or somewhere near $200B), here’s what Apple can do to shut down all manipulation and chop wall street off at the knees.
After all expenses and sustaining their cash position (i.e. accounting for inflation and making sure the “cash weapon” does not deteriorate etc.), instate a plan where all NET proceeds from a quarter are paid to shareholders who hold shares from beginning of quarter to end of quarter.
NOTE: This is way different from a simple dividend, where you only have to hold shares on one magic day and then say adios thanks for the free money. Dividend payout, as we know it today, only rewards Wall Street Shysters who take a temporary position on that ONE magic day.
Benefits of the plan would be:
1. That no one in their right mind would sell the shares at a discount, as we see today. You would only sell at the “right” price knowing that this Q they would have made $14 per share (based on $13B profit) this Q. Today the share price would be way north of $700.
2. This is probably biggest benefit of all. The share price would be independent of GROWTH. As we all know growing forever at greater than 30, 50, 75% is unsustainable. The share price would be valued at only sustaining the grown reached so far. Extra growth would be a windfall.
3. No other company could do this. Not Google, not MS, not IBM.
4. Keep all the best employees by paying them a bonus every Q. No other company could do this and would suffer from a brain drain.
You take the good, you take the bad, and there you have the facts of life.
For you youngsters – from the theme song of an old TV show “The Facts of Life”.
“No one complained”
Not true. I stopped buying as I thought the stock overpriced and I am sure I am not alone.
can a company be both publicly owned and not be in NASDAQ?
When did stock price become based on popularity and (misguided) public opinion? I’ve invested in a profitable, financially sound, innovative company (AAPL) and see my holdings drop like a stone after a record quarter, spot-on with company estimates. Something is seriously wrong.
Yeah, you f’ed up. Should have recognized that Apple stock was over valued. Sucks to be stupid, huh?
Didn’t read the article but the excerpt is about right. Be an investor, not a speculator. Learn to do a valuation. Take advantage of market irrationality. Unless you intended to sell, why does this downturn matter at all? If you can’t actually calculate or don’t have a good valuation, you really shouldn’t be in anything other than an index, which is probably 99% of the folks here. “Apple is different.” Nope. People will make and lose money with Apple the same way they do with other companies. Please learn to invest so you can make good decisions (and don’t get so upset about the current situation!).
Get rid of Tim Cook and guys like this won’t have to make up things like this because the company would then have a chance to recover. As long as Tim is around, that’s not going to happen and the stock is not going to go up any more.
Tiresome.
You are an idiot
Ppeterson, your cobbling up the idiots putting out the bad press! Yes Jobs was brilliant but you think he was alone in creativity? You gotta be kidding! Jons is still there and it’s job to get new products out there, it’s Tim cooks job to make sure it all works! You think jobs would be able to supply products to generate and supply product for $54B in qrtly revenue, $4.2B per.week when the average price is $300! I believe that’s 13M units sold and delivered world wide in 1 week,169M for the qtr! Look at the numbers and the ecosystem created and stop listening to the headlines and the bashing!
Fuck Chuck.
If FuckChuck could chuck fuck how much fuck would a FuckChuck chuck.
Apple should just take itself private.
If you don’t have a moral apprehension to capitalizing on stupidity buy as much AAPL as you can.
Fact: The DayTrader Tards (of all shapes and sizes) are gonna whine and boohoo until their keyboards short out.
Long term investors in AAPL are laughing at the short term thinking dumdums.
The problem is- It’s not true investors who are driving all this foolishness, it’s speculators. Speculators have some bizarre expectation that any company can defy the laws of physics and continue exponential growth forever. Apple is still making buckets of money- more than ever before, and more than anybody else, but did not blow out the expectations. It’s still an incredibly powerful and influential company, and I’m glad to have some money invested in it. I own Intel and Cisco as well, and wish I’d bought AAPL with that money instead.