“Financial services firm BGC Partners on Monday downgraded its rating on Apple stock to ‘sell’ from ‘hold’ and slashed its price target to 85 from 110,” Patrick Seitz reports for Investor’s Business Daily. “The report from BGC analyst Colin Gillis comes a day before Apple is scheduled to report fiscal third-quarter earnings. Wall Street expects Apple to post its second consecutive quarter of declining sales and earnings on a year-over-year basis amid soft iPhone sales.”
“‘Apple has peaked under the leadership of CEO Tim Cook,’ Gillis said in his research report,” Seitz reports. “‘When we ask ourselves ‘Do we see Apple gaining or losing its next $100 billion of value?’, the answer is losing,’ Gillis said. ‘We would rather be too early on this call than too late.'”
“‘With the unfolding dynamic that is the maturation of the smartphone market, Apple has had ample time and resources to build new revenue streams and categories, and the only new category that been delivered by current management in their five years is the watch that still begs for a raison d’etre,’ Gillis said,” Seitz reports. ” Apple has over $200 billion in overseas cash, which is ‘languishing on its balance sheet.’ It could have used that cash to buy ARM Holdings, which SoftBank just acquired for $32 billion. ‘Apple acquiring ARM could make so much sense,’ Gillis said. ‘It’s a high-margin business with future growth, plus there is a national security interest benefit. It positions Apple for the growing IoT (Internet of Things) market. So disappointing! Perhaps management was focused on how to remove headphone jacks.'”
Read more in the full article here.
MacDailyNews Take: Bad analysis. If Apple had purchased ARM, they’d quickly be ARM’s only customer and the rest of the world would quickly work to move on to an independent architecture. They would not settle under Apple’s considerable thumb. Therefore, ARM’s value as a business would cease to exist and there would be no “future growth” for an Apple-owned ARM. A competent analyst would see this clearly.
Additionally, the number of so-called analysts like Gillis who do not understand the value of the Apple Watch is appalling. All you have to do it wear one for a week. We suggest Gillis do so.
The childish and rather clueless jab over “headphone jacks” reveals an underlying bias that colors and greatly weakens the rest of Gillis’ so-called analysis.
We’ve i’Caled Gillis’ commentary for future use.
SEE ALSO:
Apple’s Q416 guidance could be significantly short of expectations – July 26, 2016
What to look for in Apple’s earnings report today – July 26, 2016
Jim Cramer expects ‘not great’ earnings from Apple tomorrow – July 25, 2016
Could Apple surge 10% after earnings tomorrow? – July 25, 2016
Apple is ripe for a rally – July 25, 2016
All eyes on Apple as avalanche of quarterly reports from Silicon Valley begin – July 25, 2016
Apple to release Q316 earnings, webcast live conference call on July 26th – July 22, 2016
MacDailyNews presents live notes from Apple’s Q216 Conference Call – April 26, 2016
Apple reports earnings miss in Q216 – April 26, 2016
MacDailyNews presents live notes from Apple’s Q116 Conference Call – January 26, 2016
Apple reaps $18.4 billion quarterly profit, the largest ever recorded by a single public corporation – January 26, 2016
Apple beats on earnings; sets all-time records for revenue, net income, and EPS – January 26, 2016
For many, many reasons: FIRE Tim Cook!
Ok…I’ll bite. For whom would you fire TC? Nameless ‘somebody who…” is not good enough.
Anyone else…don’t take it that I’m saying that TC is just good enough so why change. To me, Apple is just doing fine under his leadership.
Sean, don’t you think the Apple board doesn’t already have that list? No one expects Tim Cook to live forever or would not suddenly die or become incapacitated. Shit happens, Sean. There is a list and because no one had shared this list with you or has made a public announcement does not in any way suggest this list does not exist. Do you get it now, fanboy?
Gee I wonder what Paul, Mike and Mac, etc. have to say? Hmmm, I wonder what doofusity will spring from their limited mental capacities? Why don’t you surprise us and stay away and stop predictably taking the TC bait?
There are area’s TC could do better but it wouldn’t matter who was running Apple as there would always be another mindless bashing troll who would and will dripping-acid criticize. Rational criticism is one thing but these guys are anything but rational and well rounded. Just highly disturbed individuals.
Unlike many here, I prefer to discuss ideas rather than attacking others. It would be refreshing if you could mature up and do the same, Peter.
Peter, you and I both are Mac Pro users. I simply don’t understand why you feel it necessary to defend a leader who has effectively stopped Mac hardware improvements. It should be predictable: no new hardware, no new buyers, poor financial results. No amount of stock buybacks can cover the glaring fundamental problem.
I withhold further commentary on Tim’s autopilot leadership style until we see how bad the financial results are this afternoon.
A lot of the Mac problems are Intel. Unlike mobile, computers are not on the yearly upgrade cycle. This is not necessarily a bad thing. It does seem that the the pro lines are getting stale, however pro machines should be design for work, not fads. I am a MBP owner not MacPro, however I do see similar complaints. To me Macs are made for types of jobs: Mac mini / MBA small businesses and students; MB / small iMac for writers and number crunchers; MBP / larg iMac / MP for graphics and video. They are for the end user of the jobs. People who don’t care a lot for upgrading and don’t want a lot of down time. They want little noise and take up little space.
Most of the complaints I hear about the MP is that it is not a tower, you can’t add this or that. These seem like gamer problems. The whole Apple has abandoned pro is BS. I see so much BS about FCPX. Instead of keeping a lot legacy and create bloat when moving to full 64bit they created something entirely new. They have kept upgrading it for free and now it’s a lot better than what it was before. It is a small market, however Apple has not completely abandoned it like Adobe wants people to believe.
Which is why Apple needs to move on from Intel long term.
Wetfx, what about the pro audio guys. Pro Audio has been left in the dust. I need a computer to put my ProTools cards, my BlackMagic Cards, SATA cards, my UAD card? Where are my card slots? How many expansion chassis do I need to by to hook all that up? The last great PRO machine Apple made was the 9600. It had 6 slots in addition to built in video and SCSI. Granted, I want the newest technology but look!! Apple hasn’t even done a processor up grade on the Mac Pro for 3 years!! The internal drive is only 1TB. I need at least 2TB for each project I work on and I’m working on 3 right now. My sound libraries are about 10 TB. How much of a rats nest of wires do we need?
What has Colin Gillis created with all his blather and FUD. nothing. Unlikely Apple could get approval for the purchase of ARM as it would allow Apple to cut off its competitors or price them out of market. Companies willing to pay royalties to ARM are unwilling to pay Apple.
He’s managed to continually draw attention to himself and his down-the-dumper prognostications, and assist AAPL in losing share price. He’s the “squeaky wheel” that gets attention.
what kind of bozak would bet against iPhone 7 and Apple Watch 2.0? we have about either 4 hours or three months of affordable AAPL depending on what happens today. so the questions is buy right now or see if it goes on sale – and if it Apple surprises, and it doesn’t, then it will cost $120/share tomorrow.
Steve: “It’s the software, stupid!”
Tim: “No, it’s de iWatch, and next year the iRing!”
Fire all analists because nobody needs them. And then ban analism by adding it to existing anti-fraud laws.
What are the first 4 letters in the term “analist”? You got it.
R-U-S-S ?
This analyst has it (as usual all wrong). If Apple had decided to buy ARM, all other mobile device manufacturers would have begun looking for alternatives. It is true that many of us want more from Apple. We want new Macs, more and better software, etc. and we can argue if another leader could have brought that sooner or not, but Tim Cook is hardly a terrible CEO. Compare him to Ginni Rometty at IBM who just announced a 17th consecutive quarter of negative growth and you will understand what I mean.
With Tim Cook at the helm, the future of IBM is the future of Apple. Bank on it.
FIRE Tim Cook!
Delusional. The company got bigger and more profitable under Cook.
But IBM is up 45 dollars since last quarter.
Apple Shareholder to Analyst – Fuck Off.
Regards.
Ok, let’s fire Tim.
Who the hell is going to take his place?
Because you still want TC in your team.
Right?
If not, you people don’t understand/know what Tim has been achieving at Apple all those years…
Still the number one company in the world, so keep Tim Cook. Mind you I do understand that there is a destructive lunacy coming from those within that country.
Only Apples enemies wish that Tim Cook would be gone. Tim Cook is the genius behind the Apple Production System and the Apple Money Making Machine. He started it when he became COO and now continues to print us money. Analyst who does not understand this must be laughed at and ridiculed to the obscurity.
The problem with the analysts and the Icahns are they apparently have caught the 140 character disease – impatience in the old vernacular. Every radically new product takes a ton of time. The iPhone seemed fast after the iPod touch because it uses a lot of the tech that enabled iPod Touch; iPod touch because it again used tech from Ipod click wheel versions. Each however was a major undertaking. Apple Watch likewise was a major undertaking. The car – huge. Materials, manufacturing, materials, human interfaces, safety etc. Every aspect takes time, some directions lead to dead ends etc. Building staff and facilities. All of it. Apple even under Jobs took time, got the next product to an acceptable introductory state given the then – existing tech limits and etc. A thousands nos for every Yes. Same now as then. Just watch, patiently. If you can.
FTA: “Gillis also noted that Apple’s U.S. cash has been depleted to $24 billion and its debt has increased to $72 billion.”
That’s because Apple’s board knuckled under to Karl Ichan who railed for years for Apple to get into debt, then sells off his position once they bought back the stock to enrich his position.
I agree. The guy sucks. Remember COMPUTERS Tim???
He is bringing Apple into the ground quickly. I’ve said for for a long time now. I’ll keep saying it.
“I’ll keep saying it.”
Please don’t bother. Just go buy whatever computers you think are better.
I did. But I still want a new Mac Pro because I know it could be even better. Tim Cook is failing to give us Macs that we want.
tommyr, you do know they are the 12th largest corporation in the world by revenue, don’t you? They’re nowhere near dead. They made more revenue than the other 11 corporations above them. You’d have to be seriously delusional to see Apple as a failure.
I am well aware of that. I didn’t say they were nearly dead nor a failure. Tim Cook has lost focus on Macs. Too much attention to watches and phones. The buying glut on phones and watches can’t last in the long run. The watches from what I’ve read aren’t flying off the shelves either.
Maybe the answer isn’t firing Cook, but is firing several of the execs he has surrounded himself with.. Perhaps the team has gotten old and stale. Maybe the Coach needs new offensive and defensive coordinators? If the current crop is just telling him what they think he wants to hear, it’s a huge problem.
“Financial services firm BGC Partners on Monday downgraded its rating on Apple stock to ‘sell’ from ‘hold’ and slashed its price target to 85 from 110…”
So, this firm just informed its customers that its guidance has been highly flawed for a long time and that it is incapable of reliably predicting the performance of Apple more than one day ahead. This is simply a window-dressing move to cover their butts if AAPL takes a big dive in the near term. If it doesn’t, then this guidance will eventually (and quietly) be revised upwards and the whole thing forgotten.
If you are wealthy and can afford dedicated, personal investment support, then it might help. But the general investor lacks sufficient information, insight, and market access to have a reasonable chance of beating the indices over the long term. Even the supposed pros can’t do that. And “free” investment advice from financial companies will seldom help anyone.
Tim should be there, however Apple has to stop giving free rides to Google, Amazon, Facebook, and Netflix. Apple’s stock is where it is because of the combined hot air on the stock market from those companies.
Reader: Fire Colin Gillis.
Collin eat my Sh-t!
These BGC Klowns were on CNBC after the bell to ‘analyse’ the Apple reporting. Over the years, I’ve watched a LOT of these calls and analysts that shared their interpretation of the reports. This discussion with the ZBGC folks was 1) AWFUL because the folks representing BGC were MORONS, and 2) CNBC clearly brought these BGC Klowns into the discussion to crater the Apple results ON PURPOSE.
Here ya go BGC AND CNBC…. YOU LOSE ASSKLOWNS.
Apple already owns ARM, or at least their own versions thereof. If they wanted to start selling them to whoever, they could. They don’t want to because it’s their competitive advantage. Anyway, being in the component business is definitely wrong for Apple.