Is Apple on the verge of collapse?

“Apple (AAPL) is more than 10% off its highs for the year as a litany of less than stellar news has caused some fearful investors to flee the stock,” Joe Tenebruso writes for The Motley Fool. “First it was Apple’s ‘earnings miss,’ when the company reported revenue and profits below what Wall Street analysts were expecting. Then it was rumors of slowing demand for Apple’s iPhone based on ‘supply checks.'”

Tenebruso writes, “As for Apple’s so-called earnings miss, the company surpassed its own guidance for the fourth quarter and then went on to issue guidance above Wall Street’s expectations for the current quarter. As for the rumors regarding slowing iPhone demand, my esteemed Foolish colleague Eric Bleeker pointed out that these types of warnings have in the past often been misguided, and investors and even professional analysts often misinterpret their impact on Apple’s earnings.”

Tenebruso writes, “And what if Apple remains … Apple? What if booming international sales help Apple sell many more iPhone 4S units than analysts are currently expecting? What if Apple continues to innovate and launches a blockbuster new Apple TV sometime next year? What if Tim Cook turns out to be an excellent CEO and superbly executes the long-term strategic plan that he and Steve Jobs put in place? Could Apple — dare I say it — continue to outperform? I believe the answer is yes.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]


  1. Considering that Jobs was heavily involved on the development of the next gen iPhone, and iTV (as I have heard), I think Apple still has a good chance of staying on top.

    Plus, I’ve heard that when jobs was on leave cook would full in. And from his past performance, he seems to know what he is doing so I will not loose faith in him and apple just yet

    1. … BABBLING about? He explained the bogus reasons behind the current dip in the price of AAPL, then suggested the price could easily continue into the stratosphere.
      The Fool and I are with Ellis D.“Buying opportunity”!

      1. Yes, he explained it is manipulation, but “politely” avoided calling it that. The SEC turns a blind eye to it, and we need to be blunt about it. I’d say the SEC is useless, except that’s just our perspective — the SEC is very useful, to those who have been wrecking the coming the past decade.

  2. Motley Fool lost all credibility back in the 1990s when they promoted a bunch of methods and ran portfolios on them, and then when those methods blew up and turned out to not be good advice, they just buried the portfolios and pretended it never happened.

    Now they let a buch of yahoos post there…. it’s like the weekly world news of investing… not exactly authoritative or worth listening to.

    1. There really is some good advice in there. Their subscription services are outstanding for the most part. I subscribe to two of their services and my investments have performed significantly better than the overall market as a result. I would not have found most of those investments without them. And the ones I have found without them have done signficantly better than my investments prior to using their service because I now have a much better understanding of what is likely to make a good investment.

  3. One of my teachers, who is teaching Bible & Consumer Math, told me a few days ago that Apple stock was going down in price. He attributed it to the fact that Steve Jobs had died, however I attribute it to stupid people listening to stupid iPhone 5 rumors and becoming dissappointed by the iPhone 4S, which is still an overall great phone. This is only temporary, and I hope to see Apple stock go up by the time I start consumer math so I can get a really nice grade on the assignment.

  4. About a QUARTER of the current value of AAPL is pure CASH in the bank.

    About midway through December, the “manipulators” will start talking AAPL up. And the cycle will start again, as Apple announces results for this quarter in January.

    Invest for the long(er) term and mostly ignore the short-term movement. To me, the manipulations just allow buying slightly lower than the “moving average,” and eventually selling slightly higher. Use it to advantage.

    1. Just remember that Wall Street hates Apple because of all that CASH in the bank. You know they’re always saying that money belongs to shareholders and not to Apple. I’m not sure whether Apple is ready to collapse or not, but there are factions out there that seem to believe that Apple is on the verge of collapse as unlikely to me as it seems. I’ve seen Apple get run down before for no particular reason except some rumor. As you say, it may be manipulation, but Apple is really turning the computer industry upside-down and I’m sure there are a lot of pro-Microsoft or pro-Google shareholders that are very unhappy and probably wish Apple would go away.

      Even as a long-term shareholder I’m sometimes disappointed in Apple share movement considering 48 analysts median target price is somewhere’s around $500 a share and Apple is currently sitting at around $380. Not even close. Going by those 48 analysts’ calculations, Apple should at least be consistently around $425 and definitely not below $400.

      1. They are “target” prices. By definition, they are NOT the current price.

        And Apple regularly reaches and exceeds analysts’ targets. Sometimes, they can’t revise their targets fast enough to keep up. Other times, AAPL drops 10% below recent highs.

        The more volatile a stocks price, the more opportunity there is to make money. Even a long (or longer) term investor can take advantage of that, instead of fighting it. But trying to time things to take advantage on the short term is too uncertain (for me). Someone who bought AAPL at $420 will probably see profit at some point in the next 12 months, and a significant profit within two years. But if someone bought now below $380, needing that money back (with profit) within the next two months (or the used call options), AAPL could easily be another 10% lower in that time frame.

        Let’s all hope the overall market does not “collapse.”

  5. Record sales. Three week waits for a phone that supposedly disappointed the pundits. Record lines mean record profits, and record profits are not typical of a collapse. The public has decided what kind of phone they want, and they are going after it with startling enthusiasm. Can you imagine how high this stock will go when the public pundits finally figure this out?

  6. No I believe a good number of loyal customers are right royally pissed off. Lion only available via download? BS Wireless Flakey?
    Far too much trying to lock the customer into their walled garden. This is a very longtime Apple loyalist (aka fanboy) talking so if Apple doesn’t work on some existing issues instead of working overtime on RFD then of course the stock price will tumble. It’s about QUALITY not quantity, a lesson not learned YET.

    1. Actually, as someone in tech support, 9 times out of 10 this is due to people using cheap, low quality $30-$40 routers… Thats like buying a Mercedes and then putting used oil in it.

      It’s the same whiners over and over and over again bitching about it. I’ve assisted over 100 people upgrad to lion wirelessly… And when there were issues, we had them buy a better router or an airport extreme… You can’t expect a 7 year old linksys POS to work forever…

      Next thing you know, you’re gonna bitch about not being able to buy VHS new releases for your VCR… Idiot.

    2. If you’re going to take the time to lie, please take the time to insure your lies are plausible. Lion has been available on USB for quite some time.

      Now that you’re an established liar, we can disregard any and everything you write.

      Move along.

    3. Yes, it’s only available for download. It’s the 21st century. Please join us. Oh, but please leave the Beta Max and the rotary dial phone, you won’t need those here.

    4. I bet you believe in the Tooth Fairy, the moon being made of green cheese, Father Christmas, and the world being flat too. Meanwhile the rest of us carry on living in the 21st century where we don’t have to pay through the nose for software on a shiny disc in totally unnecessary packaging.
      Either download or a USB thumb drive for a much lower price is the way it should have been for ages.

    1. When you start to realize that we are all in the world together and if several countries have difficulties, we all will suffer somewhat until we move to help each other.

      The European failures shake the confidence of anyone who buys and sells there. If they can’t do business, they have to cut something like . . . US sales and purchases with Europe.

      It is only by cooperation that business works. Steve Jobs didn’t design, build, write software and sell all Apple’s products by himself. His real magic was to get many people to work cooperatively for mutual rewards.

  7. Everything is going down these days. All this “The myth of the continuous growth” is just coming to its logical stop. Why should Apple’s be an exception? It’s all built on the same concepts as all the rest of this society…

    1. Yeah, don’t care what the article really says or refutes after a hit mongering headline like that.

      And in fairness to MDN, they just copied the headline from the article, the original article is to blame

  8. When there is no news, just make some up!

    Yeah it’s time for the god ol’ Apple s doomed stuff. It always finds plenty of as swipes to run in the street and shout the “news”!

  9. Time management forces people to skim more than they actually read. There are those that will just see this article title and subsequently, pass that information along. If they are an influential communicator, others may interpret it as fact. The key word in this article is “rumors,” and its consequences on analyst projections, investor stability, and stock buoyancy.

  10. Back in 2010, apple broke historical records by blowing past every conceivable street target. AND THEIR STOCK DROPPED ALMOST 10%. It’s all manipulation, plain and simple.

    1. Recipe For Cooking Stock
      © Derek Currie, 2011

      1) Pour all current stock holdings down the sink and recover cash reward.

      2) Dress up one stock manipulator in sheep herder clothing. Example: Jim Cramer.

      3) Stir in millions of DayTraderTard sheeple.

      4) Add a pinch of FUD (Fear, Uncertainty and Doubt).

      5) Bake on high dudgeon until the stock valuation falls.

      6) Use previously cooked cash reward to recover dumped stock from the sink.

      7) Sit around enjoying the aroma of your stock simmering to a golden brown.

      8) When you get bored, return to step #1 and repeat.

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