David Einhorn says Apple isn’t a below-average company, it’s just priced like one

“Hedge fund manager David Einhorn has made no secret of his confidence in Apple, a significant holding for his firm Greenlight Capital,” Steve Schaefer reports for Forbes.

“The billionaire extolled the virtues of the company during a recent presentation at the Ira Sohn Investment Conference in New York, echoing themes from his first-quarter investor letter,” Schaefer reports. “Even with a market cap well north of $500 billion, Einhorn argues that Apple remains ‘one of the most misunderstood stocks in the market,’ because investors treat it like a hardware company rather than a software company.”

Schaefer reports, “‘Not only do we think the skeptics are misguided, we believe the shares remain cheap,’ Einhorn writes, given that shares trade at multiples below the average of the S&P 500. ‘We have a hard time seeing how anyone ranks AAPL as below average.'”

Read more in the full article here.

MacDailyNews Take: The whole world is out to get Apple. That statement works on multiple levels. If only the market would get around to figuring out what’s actually going on and fairly value the world’s greatest company for a change. Three months of the-sky-is-falling delusion punctuated by a couple days of earnings astonishment is a really silly cycle in which to be mired.

12 Comments

  1. Still waiting for that first Mac Virus….

    When the realization of no viruses finally hits home, so will the misguided mindsets change for the better?

  2. I have known this very sentiment for over 25 YEARS!!!! & the ANAL HOLE ANALISTS still collect PAYCHECKS!!!
    UN FCKING BELIEVABLE!!!!! Now it takes a BILLIONAIRE truthful take on Apple for this to sink in? Unfortunately this still won’t change the minds of Apple haters across the globe. Some people YOU JUST CAN’T REACH!

  3. There are so many companies and entities that will go belly up due to Apple’s extraordinary products and services, it’s no wonder they all instinctively get on the same page with the “doom and gloom.”

    Their livelihood depends on ignorance, and they’ll prolong it as long as humanly possible.

    And…as is so often the case, the more dire their own outlook becomes, the crazier their talk is gonna get!

    1. Yes!! +1 million.

      Many people still do not grasp that this is all manipulation.
      All the stock brokers that have been around a while know how to game the system.

      They know Apple stock is worth $1,000 or more.
      They want to get in and make a “quick” buck, not a long term buck, but a “quick” one.

      So they do what has been repeated over and over.

      1- Push out rumors or stories that creates a little doubt.
      2- Stock dips a small amount.
      3- Repeat step 1 if they want it lower.
      4- Buy a bunch of the stock.
      5- Wait a short amount of time because it is Apple, the stock will bounce back up quickly.
      6- Sell for nice tidy profit.
      7- Wait a few months, do it all over again.

      There is no accountability in the financial press. They can report anything bad about a company and lie about it for days.
      Many reporters are too cozy with brokers and just get fed anything the brokers want to feed them. The next days headlines.

      Massively detailed at this website:
      http://www.deepcapture.com

      1. So, if this is the state Apple is in then what chance do shareholders have of ever having the stock reach to $700 or $800. Manipulation will remain in force and there’s nothing that can be done about it. If it’s the case of manipulation, there’s no point in believing when analysts make price target estimates that they’ll ever happen. Apple shareholders will remain screwed to some degree forever.

  4. And who shows up on CNBC this morning? Gillis and Guano (yet again – video trolls). As insipid as the “advice” Guano spews about Apple is he actually has a Buy rating on RIM!!! Incredible. And Gillis still has his Hold rating on AAPL while Guano still has a $400 price target and a Perform rating on AAPL Dunderheads!

  5. The value of Apple is not unlike the value of any company that sells products in that provided that the consumer confidence is such that they spend money like drunken sailors on every new gadget then life is good. This said, the opposite of this is where it gets interesting to say the least. Did anyone ask Maddof what he thinks? Trust me every Analyst has an agenda and this clown David Einhorn is no different.

  6. “MacDailyNews Take: The whole world is out to get Apple. That statement works on multiple levels. If only the market would get around to figuring out what’s actually going on and fairly value the world’s greatest company for a change. Three months of the-sky-is-falling delusion punctuated by a couple days of earnings astonishment is a really silly cycle in which to be mired.”

    The market has “misunderstood” AAPLApple for the past 6 years. Why should it be any different now?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.