“Reading different news and financial website you can find three stories a day telling you to buy Apple, and at the same time find three articles to sell the stock. On any given day I hear the next price of Apple to be $170 per share, and another for it to drop more,” Tom Dorsey writes for Seeking Alpha. “I understand why investors are confused and don’t know where to go.”
“As an analyst, I reviewed Apple’s first quarterly financial report and I liked most of what I saw,” Dorsey writes. “Then the naysayers in the marketplace ripped Apple’s drop in overall earnings and their projections with a massive amount of press reporting to encourage the drop in stock price from $105.08 on April 25, 2016, to a close on April 29 of $93.74.”
“Some analysts compared this year’s quarterly revenue of $50.6 billion to last year’s (same quarter) of $58 billion and cried the loss of $7.4 billion of revenue. I remember Apple just released its S6 series iPhones in the U.S. in the fall of 2014 and customers were still trying to update into first quarter of 2015. Apple also expanded sales to other countries that were not able to get them in 2014,” Dorsey writes. “Fast forward a year and Apple is preparing to release its next iPhone this fall, but sales exceeded expectations for this quarter. Although the revenue was down, this is part of the cycle of a new product last year and this year we are seeing the pre-release waiting period. This was not a bad quarter for Apple – just some analysts did not bring in all the facts for their readers.”
“The company reported net income of $10.5 billion in 90 days,” Dorsey writes. “Not too many companies are doing that consistently.”
Read more in the full article here.
MacDailyNews Take: Well, 91 days* to be exact, but the point remains.
*Apple’s fiscal Q216: December 27, 2015 – March 26, 2016
SEE ALSO:
What everyone’s missing in Apple’s across-the-board earnings miss – April 28, 2016
The silver lining in Apple’s across-the-board miss – April 27, 2016
Apple reports earnings miss in Q216 – April 26, 2016
Apparently $10 billion is not enough if it is less than expected, less than previous quarters, and the rate of decrease significant.
I agree with Icahn on the following.
The fact of the matter is clearly that China doesn’t need Apple, it is Apple who absolutely needs China.
In other words, China couldn’t care less for Apple’s business.
If Apple refuses to comply with the Chinese government’s requirements, Apple will likely be barred from China, plain and simple.
As would any other corporation who refuses to comply with the Chinese government.
Kinda slightly wrong on this one.
Do you know how many people Apple is giving work in China?
They both have weight in their plate. This is why Apple is working on the India side of things… Trust me, China is proud of having the greatest American company ever to have their factory in China. They are strict but proud. Apple moving to India as a wild card is totally in play and China knows it. Global economy is struggling and stability is welcome. As they occidentalize, China knows this.
Icahn has always been great at braindead poor fact. A cry baby with less than a teen’s brain. Wealth and money doesn’t bring intelligence. It is all good now that Carl is out of Apple stuff.
Calculate what percentage of China works for Apple in any capacity.
If there is a collision between Chinese political interests and Apple, China won’t hesitate to turn screws on Apple.
And as hilarious pointed out, Apple doesn’t have any good alternatives. Attempts to perform assembly in Brazil and other places have not panned out well.
Wall Strret expects Apple profits more than $50 billion each quarter😀, damn that is tough love. 😜
Definitely not enough in terms of profits. Even so, when Apple was selling iPhone 6 units last year at a pretty decent rate and yet the share price was still dropping. Why on Earth would any new investor want to own stock in a company that isn’t going to give you share price increases almost no matter how many units they sell? No smart big investor wants to touch Apple because it’s become the sort of stock that is a Wall Street and news media joke with Tim Cook as the laughable Court Jester.
It seems every product or service Apple comes out with is said to be a failure. It may not be actually true but the general consensus says it is. That’s like owning a company with a black cloud hanging over it. The big investors probably don’t like Tim Cook at all because he doesn’t inspire much in the way of confidence and his lifestyle isn’t something any Bible Belt investor would want to support.
Apple’s share price is going nowhere and even long term shareholders like myself realize that much. There’s simply no shareholder value besides dividends that makes it worth owning the stock at this point. Goodness gracious, Amazon is just crushing the mess out of Apple in terms of share gains. What a total embarrassment for Apple shareholders. Now they’re even saying Amazon Kindles are better than Apple iPads. And the insults just keep on being tossed at Apple.
Amazon and Apple may be the two best run businesses in the world. They are run very differently from other companies and from each other, so a lot of people fail to understand them.
But Wallstreet has figured out Amazon. It would be nice if the also figured out Apple.
Apple has no “S6 series iPhones”.
Greedy investors will be the ruination of the whole investment game if something isn’t done to stop them from jerking stock prices around with their totally unrealistic expectations.
Now now, Apple’s $10 billion quarterly profit is enough for Wall Street to let the stock be worth more than a dollar. That’s pretty good news.
The usual points:
A) WallNut Street is high on amphetamines, coke and meth, demanding fast and fat returns now now now.
B) Apple doomsaying is perennial, not matter what’s actually going on: Apple Death Knell Counter
C) Stupid is the new status quo of the USA. That’s what you get when the priority is Feed the Rich; Kill the Poor; Make War, Not Educaton.