Apple needs to answer these questions

“Apple’s latest earnings report put some fear into investors, as earnings and gross margin guidance surprised many,” Bill Maurer writes for Seeking Alpha.

“Apple doesn’t feel indestructible anymore, but that doesn’t mean the best days are behind the company,” Maurer writes. “Apple can easily bounce back, but investors need to be reassured of some things.”

Maurer writes, “Here are some questions that Apple needs to answer over the next couple of quarters.”

• Are gross margins just returning to normal levels?
• What’s going on with the regular iPad?
• What are you doing with the cash?
• When does China Mobile get the iPhone?

“Right now, there is an incredible amount of fear surrounding Apple, and that provides a unique opportunity for investors. Every time we get an estimate or price target cut, it makes shares cheaper for all. I’m sure a number of places are happy now that these negative notes keep coming out. Every time the price drops to $500, more people can back up the truck and purchase more,” Maurer writes. “Those people aren’t as prominent when shares are at $600. Don’t forget, every time that an analyst cuts Apple estimates, it makes it easier for Apple to beat when they actually report.”

Read more in the full article here.

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

44 Comments

  1. Many investors are greedy bastards. No matter how much money Apple makes for them, they always want more, more, more and get as angry as rabid dogs when their ridiculous expectations aren’t met. Screw ’em!

      1. You, sir, are going to have to pay many thousands of dollars to readers who just splattered their Cinema Displays with coffee! 🙂 Oh, the images that comment generated. My brain is fried.

  2. Remember, this is all about instant greed and not investing in a company. Todays stock price only reflects how much trolls can control the market. Push the price down… BUY… Push the price up — SELL. repeat…

    Google and Amazon are considered better buys than Apple??? Maybe the world will end on the 21st!!!!!! LOL

    Just a thought.

    1. You invest in a company because you think it’s profits will grow significantly. These 4 questions are important in that regard. Investors don ‘t put money in a company becsuse they like them or their products. And it is just simply prudent to wonder if Apple will be able to continue growing at this rate and keep their profits at this level. In financial terms, they have alteady been defying gravity for a long time. Every company in the history of man eho has been in this position has faced slowed growth and lower profits at some point. It would be crazy not to question if this will happen to Apple.

      1. NO.

        You use yardsticks like those used by stereotypical Wall Street Analysts to make a fast buck and to hell with whatever the company is *really* doing or how sound the company *really* is.

        If you wan to maximize gross margins you put in the cheapest components and assemble them in the cheapest manner and don’t set up any infrastructure to support those end customers directly. This makes the greedy, get rich quick guys happy but eventually kills the company.

        Apple is working differently. They are investing in the future of Apple! Not in the yacht of some Wall Street slug. They are even expanding manufacturing in the U.S. — not the place to manufacture if you’re trying to satisfy the greedy Wall Street bastards.

        Tim Cook’s biggest paydays are still 4 and 9 years out (when his stock payments vest). He is trying to build a company that still will be great in 9 years. He’s not trying to line the pockets of those on Wall Street this week or next.

      2. Slowed growth does not mean lower profits. Apples growth has slowed but they still posted a record 4th quarter. They were never given a proper valuation for their astonishing growth in the past so to beat up the stock now based on “slowing growth” is nonsense.

  3. “Apple can easily bounce back, but investors need to be reassured of some things.”

    I don’t know it is looking pretty grim for Apple right now. The Palm and the Zune never bounced back! I can see why these so called Analysts are worried. Will Apple even be here in 6 months? I doubt it. They got serious problems now. First they couldn’t make the iPhone 5 fast enough, and now the iPad mini might even be outselling the iPad!

    This means Apple who used to hold the number 1 spot, now holds the the Number 1 & 2 spot. How the iPad managed to fall to the number 2 spot behind the iPad in such a short time is really disappointing. I doubt they can bounce back. Time to sell their stock.

    1. “The Palm and the Zune never bounced back!” What did the Zune have to bounce back from? It was stillborn, and incapable of being resurrected. And Palm have been on a downward slide since forever, not having clue one as to how to answer Apple and Android’s OS and hardware advances, and being in total denal all the while.

    1. Sodden thought: How about gathering two or three of the popular posters hereabouts and have them go at it with several analysts on Jerry Springer. Talk about swearing. More bloodshed than an NHL game.

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