“You’re going to come across quite a bit of commentary today that will try and pin Apple’s earnings miss to some vague notion of the weakening global macroeconomic environment, to the death of Steve Jobs or to the beginning of a general slowdown at Apple,” Andy M. Zaky writes for Fortune.
“Those who know very little about the company will try to argue that Apple has finally succumbed to intensifying global growth concerns, and that without its master chief architect, Apple’s best days are now behind it,” Zaky writes. “They will point to Apple’s fiscal fourth quarter miss as a clear warning sign that the stock has peaked and that all investors have to look forward to is lower prices from here.”
Zaky writes, “First of all, these arguments are total nonsense. Anyone who says that Apple (AAPL) has topped or that it cannot go any higher has zero working knowledge about the company or its financials. The company is going to have more cash than its entire market cap in less than three years.”
Read more in the full article – highly recommended – here.
MacDailyNews Take: What we wrote yesterday when reporting Apple’s earnings: “Expect the bears to jump all over this ‘miss’ in Street expectations, while never mentioning the record revenue or that Apple did significantly better than Apple themselves guided. They will say ‘it’s all over because Steve is dead,’ that not enough iPhones were sold (while ignoring that most expected a new iPhone in the fall), and anything and everything else they can dream up to beat down the shares. In other words, expect an ‘AAPL sale.'”
The analysts like to through numbers that they don’t grasp out there and pretend its a miss. They got it wrong. That’s all. Apple is still on its record breaking path. Wall street doesn’t matter for Apple’s growth.
“Wall Street doesn’t matter for Apple’s growth”
You are right, the only thing that matters for Apple’s growth is making products that people want to buy. This is the reason Wall Street beats up on Apple. They have ZERO control and influence on Apple, and its driving them batguano insane. They want the power and control over Apple that they have over almost every other company, and they want to get their greedy hands on the cashpile that Apple is sitting on. Apple thumbs their nose and blows a razberry to Wall Street with every successful product launch and quarterly report.
As an investor the lack of proper analysis by so-called analysts shows me just how clueless they must be reporting on everyone else too. I’ve noticed over the years the more you know inside about an event and then read the reporting on it you realize just how much reporters screw it up to their own nefarious ends or agenda or just plain stupidity. It all gives creedence to the old expression “Don’t believe everything you read” in the paper or especially on the Internets.
Well said.
… wrong in saying “Anyone who says that Apple (AAPL) … cannot go any higher has zero working knowledge about the company or its financials” – but that’s just cynical me. Cynical Me saying “these are cheats trying to force the price down so they can Buy Low”. It’s a Wall Street thing.
Sheer madness to me. It’s like a runner setting a new world record by 14 seconds, but because some yahoos in the arena expected him to beat it by 20 seconds, he’s punished instead of rewarded. Madness.
Good analogy.
It happens all the time in gaming — uh, gambling. Check it out in Las Vega. The Cards could win the World Series in 4 straight games, but if they miss the point spread, well, you still lose money. Sounds like a stupid way to spend your time and your money, IMNSHO.
Apple this well WITHOUT releasing a new iPhone this quarter. A wave is building folks!
People covering their asses can spin the story any way they want. The reality is: Apple shares down $20 ($404), ISRG shares up $37 ($420). It doesn’t matter who, what, where or why. A stock either performs up to expectations or it doesn’t. Apple is flopping around like a rag doll. ISRG is standing tall. Apple shareholders are weeping, ISRG shareholders are laughing.
Apple and the analysts can talk about wait until the next quarter all they want. They already said the exact same thing last quarter. The current reality is that Apple disappointed shareholders big time thanks to overzealous hype. No apologies or excuses necessary. Apple, the company, is raking in huge amounts of money and making the rest of the tech industry pale by comparison, yet the share price is all over the place like a poorly-designed rollercoaster. The stock is clearly being manipulated and nothing can be done about it. So, no matter how much money Apple brings in, the stock will continue taking wide up and down swings. There will never be a smooth ride for Apple shareholders.
Apple beat their guidance by the same margins as it always does.
Get it. Beat their expectations.
Apple investors listen to Apple’s guidance and know what a record quarter means. The only reason the stock is down is because 70% of it is owned by institutions like hedge funds, who can dump a big quantity (like they did) minutes before earnings became public (they have faster access to the news) to create an illusion of panic selling. They can do this without losing a substantial share of their holdings and when they knock it substantially down, they then load up again and buy back at huge discounts created by this manipulative and selfishly greedy move that they repeat over and over again.
Now they sit pretty for the holiday 1st quarter, till which they’ll create several false alarms and load up even more.
They hurt small ignorant investors who panic and sell at huge losses, but can’t fool the real Apple investors. Apple will be over $500 at next earnings in January- bet your ass on it.
PS: Gene Munster’s TV is still looming
This is maddening. WHO would pull their money out of Apple after yesterdays call ?
I’ll tell you who – moron investors who don’t understand the first thing about Apple and Wall Street (so they can catch another ride back up $).
Every time someone an Apple farts people react.
Do us all a favor and let the stock grow .
If analysts spent 5 minutes observing when Apple ships their products, they’d be in the ballpark. Such basic ignorance shows just how little anyone should trust the advice of these idiots.
http://themacadvocate.com/2011/10/18/wow-is-wall-street-stupid/