“After months of iPhone sales estimates being slashed by analysts, expectations have been reset,” Neil Cybart writes for Above Avalon. “The iPhone mega upgrade cycle of 2018 that so many were calling for is not going to happen.”

“One assumes such a reset would have been accompanied by a significant decline in Apple’s stock price,” Cybart writes. “Instead, Apple shares have outperformed the market and continue to trade near all-time highs.”

“The resiliency in Apple’s stock price reflects the company finally finding a narrative on Wall Street, and it’s not centered on the iPhone,” Cybart writes. “Apple has become a capital allocation story.”

“Narratives matter on Wall Street [see Amazon and Netflix, for two examples]. A compelling and easy to understand narrative allows companies to navigate rough waters such as a disappointing earnings report,” Cybart writes. “Apple has long struggled with Wall Street narratives… [But, finally], evidence is building that Wall Street has begun looking at Apple differently… Apple has found a narrative revolving around capital allocation. Instead of iPhone sales or Apple Services revenue gaining importance, Apple’s balance sheet strategy is driving the company’s new Wall Street narrative.”

Read more in the full article here.

MacDailyNews Take: A new, more correct narrative is certainly better than the fatally-flawed Church of Market Share narrative of old.

Another $125 billion in buybacks would be seismic.MacDailyNews, November 18, 2016

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