Tech leads stocks lower; Apple slides below $600

“Stocks were lower across the board before the end of trading Monday, with the Nasdaq leading the decline, off 0.7%, compared to the Dow’s 0.2% slide and the S&P 500‘s 0.5% fall,” Teresa Rivas reports for Barron’s.

“Apple (AAPL) slipped below $600 for the first time since its earnings report; the New York Times profiled the methods it and other tech companies use to lower their tax bills,” Rivas reports. “Netflix (NFLX) was also falling as Apple is reported to be in talks with EPIX to stream its content on their digital devices.”

Read more in the full article here.

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Apple in talks to stream EPIX movies for upcoming TV, say sources – April 27, 2012
Rush Limbaugh: New York Times targeting Apple; latest hit piece based on erroneous tax data – April 30, 2012
Does Apple know how to use its money better than the U.S. federal government? – April 30, 2012
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The New York Times blows it again: Incorrectly reports Apple’s tax rate – April 30, 2012
Apple to The New York Times: We are among the top payers of U.S. income tax – April 29, 2012
The New York Times: How Apple sidesteps billions in global taxes – April 28, 2012
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The New York Times continues idiotic vendetta, claims Apple’s new iPad only offers ‘modest changes’ (UPDATED) – March 7, 2012

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10 Comments

  1. Another blowout quarter wasted on Wall Street. It’s getting to be a rather bad habit. As earnings go up the P/E goes down further. That’s pretty much a no-win situation for Apple and shareholders. I’m not sure if that’s the conspiracy, but it certainly is a fact. Apple shares fall before earnings, shares rise on blowout earnings, shares fall after earnings. That’s a rather nasty cycle.

    1. Long term Apple investors are doing quite well. Even given the irrationally low valuation of AAPL, the share price has climbed substantially in recent years (just not nearly as fast as earnings or profit growth). In addition, the P/E can only drop so low – institutional investors own about 70% of outstanding AAPL shares, and they will not pass up great value buying opportunities.

    2. The great money to be made on Apple has already been made. Fanbois might make a few $ on Apple, but the time to buy was when nobody on Wall Street gave a shit about Apple. Playing options is a good way to lose your shirt- long term.

      I started buying at less than $10/share ($5 split adjusted) and stopped at about $320. Sold some at $402 last year and am holding the rest. Even if my remaining holdings went to zero, I’m still way ahead. There is a nice car sitting in the driveway that was entirely paid for by the stock.

    3. Apple’s share price should not really climb from the December quarter to the March quarter because, even though they did an amazing job of matching the holiday quarter during a traditionally slow one, the profit is about the same as the december quarter. Thus if we stay at a PE of 14, then the shares stay the same. Remember, we doubled profit from last march quarter so the shares are roughly double. If next march we double profit again from this past march quarter (which seems likely) the shares will be double while at a PE of 14 – yes, around $1000 a share!

      Yes, it would be nice if the PE would show more optimism since apple’s growth seems like a solid story, but for aapl share holders, even at a PE hugging the lower boundary, we will see doubling of share price. Now, if apple ever gets into the euphoric zone of a PE of 100 or more like Amazon – sell temporarily! But for the forceable future, stay in while it is at the lower boundary of its PE.

      In the coming three quarters we will see the climb continue as we get close to the next holiday season.

  2. Screw all of that… keep declining. Let Apple buy it all back and remove itself from a publicly traded company and go private. Then they can really concentrate on insanely great products and not worry what assinine media outlets and analysts thing of them.

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