Apple’s great quarter not good enough for some analysts and investors

“Apple’s (AAPL) sweet earnings report left a bad taste in the mouths of some analysts and investors, sending the company’s shares lower on Thursday,” Troy Wolverton reports for TheStreet.com. “Apple’s shares were recently off $3.39, or 8.3%, to $37.65. On Wednesday afternoon, the computer and electronics maker topped Wall Street’s earnings estimates by 10 cents a share and offered better-than-expected guidance for its current quarter.”

“Despite the blowout numbers, some analysts still found room to quibble. On a conference call after the earnings release Wednesday, Apple CFO Peter Oppenheimer warned that the company’s revenue growth — which hit a 70% year-over-year rate in the quarter — will likely slow to closer to 15%,” Wolverton reports. “Oppenheimer didn’t predict how soon Apple’s revenue growth will reach that rate, but in a report issued Thursday, American Technology Research analyst Shaw Wu warns that the slowdown could happen as soon as the company’s next fiscal year. That possibility is in stark contrast with investors’ expectations, Wu says.”

Full article here.

MacDailyNews Take: So did analysts think Apple was going to post enormous revenue growth increases forever? And what company does? And do they really expect Apple to come out with an iPod-like phenomenon every year? It seems to us that many are missing the real stories here: Mac sales are on the increase and are growing much faster than the PC industry as a whole and debt-free Apple now has over $7 billion in the bank or almost 25% of the company’s current market value.

That said, we really, really, really wouldn’t mind seeing AAPL bottom out at around $35. wink

28 Comments

  1. Well, I’m into AAPL for at least a medium term investment, but it still fills me drawers with hot brown suds to watch hundreds of my hard earned dollars evaporate every 15 minutes this morning. Such shady business the stock market is….it’s all gambling against other stockholders, and very little to do with the actual companies involved. Hopefully tomorrow will be a much more postive day!

  2. Bunch of idiots in the stock market. Apple is the only personal computer company doing great and there penalizing them for having such a great record breaking quarter like they lost money or something. I really don’t know what they were expecting but from what I see it was all great news and more to come.

  3. I can imagine that once Tiger is released the stock will peak again. The number of OS upgrades they plan to sell is sure to reign in a hefty sum of profit for the quarter. I expect Apple to ride the profit wave of Tiger followed by brisk holiday sales to get them to next year on a chariot made of gold. By this time next year, there will be a whole slew of new hardware and possibly some iLife/iWork updates.
    Unfortunately, I don’t own any stock in AAPL. I prefer my 401(k) to be well diversified among stocks, bonds, and mutual funds.

  4. Unless PowerMac & iMac sales pick up and there is proof that minimac and shuttle are not killing sales of higher revenue computers and ipods…Apple will not please the analysts.

    The world wants inexpensive, apple is giving them inexpensive. It Takes lots more sales to make up the revenue of the low priced products.

  5. Some of these people need to be punched in the face. I want names so I can go and punch their lights out! Anyone want to join in?

    Still, not as bad as the crash of 2001. Yet.

  6. Wall Street had already factored the increased revenue into the price, so naturally no bump from what was reported. Future not expected to be as stellar (per Apple CFO), so profit takers took their money and ran. Not a reflection that Wall Street thinks that Apple is a bad company, just that the stock price isn’t undervalued any more.

  7. Cool. The kids and I can eat grits for a week and we’ll put our food bill into AAPL shares when they hit $35. They we’ll eat lobster a week after that when its $45!

  8. I held AAPL for 2 years until today. A stop loss order turned out to be a very good idea. I think this is a necessary correction in people’s thinking about APPL. Most of the analysts and many investors hung their hats solely on iPod sales and that speculation was driving the huge price fluctuations we’ve seen. If they’ve all bailed out and taken their speculation with them, then what is left is solid value, something which I’ll put my money back into at about $35. Repeat after me…”It’s the OX [X] stupid!” Long term it will be CPUs and software that will be AAPL’s bread and butter, not iPods.

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