“Apple’s stock hit a 2016 high on Wednesday, with its market value peaking above $600 billion for the first time since April as Wall Street bet the technology company’s newest iPhone would help shore up falling sales,” Noel Randewich reports for Reuters.
“Fueled by U.S. wireless carriers’ reports of strong early orders for the iPhone 7 as well as arch-rival Samsung Electronics’ widely-publicized recall of potentially exploding Galaxy Note 7 smartphones, shares of Apple rose as much as 4.7 percent to $113.03 for a gain of 10 percent in the past three days,” Randewich reports. “Its market capitalization reached nearly $607 billion, compared to $535 billion for Alphabet (GOOGL.O) and $440 billion for Microsoft.”
“After sinking to a two-year low in July that had portfolio managers describing Apple as a value stock and no longer a growth play, shares of the world’s most valuable listed company have since rebounded 25 percent,” Randewich reports. “Also up on Wednesday were companies supplying chips and other technology for iPhones: Cirrus Logic (CRUS.O) rallied 4.3 percent, Skyworks Solutions gained 3.8 percent and Jabil Circuit added 2.8 percent.”
Read more in the full article here.
MacDailyNews Take: From our jam-packed iCal, July 2016:
Our opinion [is] that Apple has peaked under the leadership of CEO Tim Cook. — Colin Gillis of BGC Financial L.P. as he downgraded the stock to ‘Sell’ and lowered his price target by 23% to $85.
SEE ALSO:
Analyst downgrades Apple, says company has ‘peaked under the leadership of CEO Tim Cook’ – July 25, 2016
Explosive iPhone sales and explosive Samsung phones – A perfect storm for AAPL.
We have to wait, there will be a somethingate happening that will bring the stock down or put it in idle…
Wish I am wrong.
Great news, the stock has overall, been going us since Tim Cook has been at the helm.
More exciting stuff yet to come that should bring the stock back to where it should be all along.
I do wonder, would Apple’s share price have been so jittery the last few years had the company been more forthright about their plans? — it does seem that just about any rumour, however sketchy, is taken too seriously by the Wall Street establishment and can jettison value in huge volumes. What sense does it make to remain so secretive if your stockholders suffer? I can only conclude that Apple leadership has valued the secrecy surrounding their R&D as possessing far more value than what would be lost by telegraphing their intentions to competitors, or by depressing their signal advantage, that of surprise and delight to their customers. — Apple essentially represents the fresh, the new, the bold foray into a beckoning love affair, something to relieve the tedium of daily life; a spray of eau de la vive on the wrist to inform a later date with delicious destiny. Something to look forward to, to mark in one’s diary with a drawing of a little heart…hopefully to be followed by the details of a torrid encounter with a wicked Mac Pro. ✨✨
Of course Apple could release their plans to the market and Samsung would rush to cobble something together before Apple got it perfected. With this repeated pattern, the stock market would continually downgrade AAPL until the company couldn’t produce anything without being last to market.
The market generally “buys on rumour” and “sells on news”. The Apple rumour mill is big business and has driven up the stock for a long time. Notice how the stock sharply drops after every Apple product presentation? If Apple was to announce their plans, the market would sell on that news and would buy Apples competitors’ stock because they would anticipate the products coming from them first and stealing the perceived all important ‘market share’.
The long and the short of it is Apple is doing the right thing in being true to their mission: produce products that delight their customers.
Apple takes the long term view, you’re taking the short term view. Do you think the price today would be higher if they had been releasing their plans early during the previous several years? Why would it?
Competitors are eager to know every move Apple is making. What are the disadvantages of telling them?
What about “plans” that don’t work out? Surely there are some things we’ve never heard about that didn’t make to being a product. If Apple had talked about those wouldn’t be seen as a failure? Wouldn’t the price be dropping when Apple announced something didn’t work out?
R&D is best left behind closed doors. Finished products get the limelight.
There is a good chance as others have pointed out that the stock price would be very stable if Apple were more open, less secretive, trading around the ten dollar mark.
The reason to suffer is quite well established, the mantra of short term pain for long term gain, that’s part of the value.
It’s like you and I enjoying a refreshing drink together, say at a terrace, enjoying the last days of summer, bright and sunny and just right. We sip, we chat, we experience ourselves, learn how we interact with our environment and the others around us and savor the elixir of life.
Yet deep down inside within the recess is that pain. It’s slight at first, but it starts to gnaw. And that’s the rub, because if you attend to it, it could disrupt the magic that is starting to manifest itself.
The comfortable body position, the dilated pupils, the satisfaction that comes the though of an amusing anecdote, laughter. The special magic when some bird flies to the edge of the table to pick up a crumb right in front of you. Something like that, shared with someone who was there with you.
It only intensifies the pain the desire to relieve it, as the internal machinations whirr on delicate butterfly wings. A breeze could spoil it, an awkward touch, an intrusive passer by, anything and everything could cause it to blow off kilter and to take it to the one extreme of pain, death, failure, destruction.
It’s riding the razor’s edge, taking that journey to launch a thousand ships, beyond the moon, and no doubt the moon is shinning the stars are bright and the cafe is long gone, it’s just us.
With the pain being unbearable, but moving through it, staying the course, relentless to precipitate the dream into reality.
All that pain and jitters, a prelude to a kiss. You don’t know how it happens, a not so awkward touch, a request, a closeness and yet is happens….
that kiss.
I do wonder, would Apple’s share price have been so jittery the last few years had the company been more forthright about their plans? — it does seem that just about any rumour, however sketchy, is taken too seriously by the Wall Street establishment and can jettison value in huge volumes. What sense does it make to remain so secretive if your stockholders suffer? I can only conclude that Apple leadership has valued the secrecy surrounding their R&D as possessing far more value than what would be lost by telegraphing their intentions to competitors, or by depressing their signal advantage, that of surprise and delight to their customers. — Apple essentially represents the fresh, the new, the bold foray into a beckoning love affair, something to relieve the tedium of daily life; a spray of eau de la vive on the wrist to inform a later date with delicious destiny. Something to look forward to, to mark in one’s diary with a drawing of a little heart…hopefully to be followed by the details of a torrid encounter with a wicked Mac Pro. ✨
Well played, Road Warrior 🍀
There’s patronizing about looking down on the WallNut Street dummies and handing them an outline of future plans. That’s not an Apple thing to do. Apple also is THE tech innovation company and is ripped off right and left. Keeping a market advantage by keeping their plans secret is in their best interest. We must note, however, that it’s hard to keep secrets when workers at third party manufacturing and assembly plants compete with one another to sell Apple parts and pieces to rumor mongers. *cough*China*cough*
*cough* Correction: There’s SOMETHING patronizing about…
More caffeine please.
Call the java man from Columbia.
This afternoon’s coffee was from Costa Rica. Wonderful stuff.
Had coffee at IHOP this a.m. Couldn’t finish the stuff
I had a full French press carafe down the street yesterday. I couldn’t finish it either, despite the major yum factor.
Evidence for individual investors to consider:
These guys will take your money – lots of money- in exchange for inaccurate guesses. If they are really any good at predicting the market and individual stocks (outside of insider information!), then they would be independently wealthy and not bothering to pander for your dollars. Instead, they play the casino strategy…let the other guy put up the money and take the risk while I skim off my cut. It doesn’t matter if the market goes up or down, I make money.
Very few actively managed funds beat the broad market indices for any extended period. The best bet for individual investors is to select low-cost index mutual funds with expense ratios of 0.25% or less and no 12b-1 fees. If you want to have a little fun and take a little risk, take a portion of your investing capital and choose a few individual stocks with which you are familiar. That’s why I choose Apple.
“Blasting” to a price that is about one-third of where the stock should be isn’t much of a blast. We shareholders would be enjoying a far better investment decision if the company had a CEO that Wall Street trusted to be leading the world’s largest that just happens to be missing the bonanza of growth potential at its doorstep if all its talent and resources weren’t focused just on phones and gadgets. Everybody is making phones. Very good ones and very competitive with loyal consumers. Only Apple has demonstrated the ability to build far and away superior personal computers but has basically abandoned the potential in this vast world wide market. Very sad state of affairs lingers on in Cupertino. Very sad.
Jay, thanks for playing. Long time, no see. Too bad it had to end.
There is one company out there that is attempting to incinerate its loyal customers. That will change things a bit…
Cook is doing fine. He cares as little about your opinions as the rest of us.