“One place in today’s market that numbers are misleading are in regards to Apple (AAPL),” Bill Maurer writes for Seeking Alpha.
“With Apple being so big, there are millions of numbers you could use to analyze Apple,” Maurer writes. ” For the average investor, that may be too much. But lately, Apple’s stock has come down quite a bit, and investors might not understand fully why. It has to do with some Apple math that investors don’t quite understand, and that’s a mistake.”
Maurer writes, “Today, I’ll show a bunch of numbers that don’t show the whole truth, and why Apple is still a great buy at current levels… Investors see Apple’s guidance, and think revenue growth is slowing tremendously and earnings are plunging. That’s not exactly the case. Investors see conservative guidance, and they get spooked. Well, that’s the history of Apple. Investors see Apple proclaiming low margins, and they panic. But that will mostly be a one quarter issue, they will rebound. Numbers are sometimes misleading, and they have built up so much fear around Apple that the stock keeps dropping. Once people understand the numbers, they’ll realize Apple is still doing quite well. Last year, I stated that buying Apple under $375 was a tremendous opportunity when there was just as much fear. This year, Apple under $550 is just as good of an opportunity.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Tayster” for the heads up.]