Wall Street panic deals undeserved thrashing to Apple (AAPL)

“Although Apple certainly is not alone in getting hammered in the midst of one of Wall Street’s worst crises ever, the company’s demonstrated resistance to the general economic slowdown should have provided some insulation. But not with a stock as notoriously volatile as AAPL,” David Zeiler reports for The Baltimore Sun.

“Despite the prevailing sense of panic on Wall Street, the AAPL selloff makes little sense. The company has reported exceptional sales and profits throughout the year, and is expected to post more eye-popping numbers for the quarter that ends Sept. 30.

“Consider: Apple had its best March quarter in company history, with revenue growing 43 percent year-over-year to $7.51 billion. Mac sales were up 51 percent year-over-year,” Zeiler reports. “In the June quarter Apple revenue rose 38 percent year-over-year, led by a 41 percent increase in Mac units shipped. The iPod chipped in with a surprising 12 percent increase in sales year-over-yea.”

“More importantly Apple appears likely to sustain its healthy growth with minimal impact from weakening consumer spending. It defies logic, but that’s what the numbers have been telling us,” Zeiler reports.

MacDailyNews Take: Actually, it’s quite logical: Mac users tend to be better educated and make more money than their Windows PC-using counterparts, and are therefore the last to be affected during “tough times,” if they’re affected at all.

“In the current environment, few companies match Apple’s potential to keep raking in money. Throw in Apple’s lack of debt and staggering $21 billion in cash and you wonder why anyone would sell the stock, particularly as it gets cheaper,” Zeiler reports. “But then again most Wall Street muckety-mucks aren’t looking particularly shrewd these days, are they?”

Full article here.

45 Comments

  1. In the past, I always thought that wall street didn’t understand apple.

    Then over the past couple of years I thought they were starting to understand how apple is different than “normal box making companies”

    Now I don’t know.

    There is no reason other than “the ceo looks too thin” crap that is keeping apple so low. Fundamentally the company looks great.

    I just don’t get it.

  2. Damn day traders….some of them must be losing their shirts.

    I am looking to buy because Appl can only start to go up once the election-induced uncertainty is over and hopefully the economy will stabilize

  3. I don’t know why investors don’t realize that Apple is recession proof. The rich are getting richer and they need to find new ways to waste their excessive amounts of money. That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.

    The rich don’t need to worry about a simultaneous rise in the cost of living and drop in wages. The rich don’t need to worry about anything. That’s why Macs, with only one model that can be purchased for less than a thousand dollars, will survive just fine. That’s why iPhones are still flying off the shelves and iPods will be hard to find. Rich white people need their toys and Apple will be there to answer the call.

  4. “That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.” BARELY MORE POWERFUL than a $500 Eee PC – lets see which operating system does that Eee PC run again? Not very powerful now is it? I can do way more with my MacBook than you can do with your Eee PC crap.

  5. You are a sick individual. What are you trying to say? People are rich for no reason? Their hard work shouldn’t be rewarded. What would the incentive to work hard be then? If you don’t have the money don’t spend it with credit cards and loans that you can’t afford. Communism is what you’re pushing. Bad, bad, idea. There are many people who abuse credit and buy things that they can’t afford. That is the problem. Then the other is the welfare abusers who could work but would rather take handouts. Last are the truly needy who should be helped.

  6. LOL, where in my post am I pushing communism? Where did I say hard work shouldn’t be rewarded?

    I just put the truth on the table without the powdered sugar. Apple is recession proof because it’s a brand for white people with higher incomes and even in the midst of economic turmoil they will still want to purchase consumer electronic goods.

    Where am I wrong? Where did I say people shouldn’t feel good that they can afford to have it all?

  7. “That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.”

    I don’t understand what you are comparing. Please show us the specifications.

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