Gundlach: Apple ‘a broken company’

“Apple stock could be headed to a level of $425 per share this quarter, DoubleLine CEO Jeff Gundlach said after the company reported disappointing earnings Wednesday,” Bruno J. Navarro reports for CNBC. “‘I think this is really a broken company that is over-owned,’ he said on ‘Fast Money.'”

“For the fiscal first quarter, it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier,” Navarro reports. “Gundlach also said that Apple stock remained ‘very, very much in the public’s psyche,’ which would keep share prices artificially high.”

Read more in the full article here.

MacDailyNews Take: Apple yesterday reported the fourth quarter of the most profitable year of any publicly-traded company. Ever.

[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]

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Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013

44 Comments

    1. IF Apple BREAKS – they all fall.
      The tech sector is in trouble.

      Apple has been the underdog before and will rise again on new innovations, no matter what. Are other companies ready? Hell no.

  1. Yea, world record profits are a real smoking gun, aren’t they? Does anybody think this share drop has anything to do with the rumors that Tim Cook is gay and conservative fund managers don’t like that so they manipulate the market? This whole thing stinks to high heaven. I hope the SEC is looking into the trades.

    1. I’ve been following and accurately valuing Apple’s stock with dozens of colleagues for years. At no point has any single one of my colleagues or ANYONE we interact with externally mentioned his sexuality. Your brand of ignorance is easily the most nefarious form of mob-mentality. Learn to follow the trends, understand that very few analysts have realistic/accurate projections, and enjoy the buying opportunities when they arrive. Most of us know there is nothing wrong with AAPL or TIm Cook.

    2. This may be one of the most silly things I have ever seen posted at MDN (and that’s saying something). Money Managers are about MAKING MONEY, and if you have a 401k or a pension, or any mutual funds, you should be happy that that is their motivation.

  2. If Apple with another incredible quarter isn’t worthy then GD’it who is? Only in America can tremendous success be interpreted so dire. Unbelievable. I’m getting no shortage of grief from my wife for having not cashed in last September and when will we see $700 again? (And beyond.)

    1. That’s so funny, because my wife berates me every day about exactly the same thing (“Why didn’t you sell at $700??!!”). Geej! Because I’m long on AAPL, that’s why. It WILL go back up. They just can’t keep it down forever (at least I hope they can’t). Why AAPL is treated so horrendously differently than every other stock remains a mystery to me…

      All I can say is, “keep the faith, brother”. It has GOT to get better eventually (one day everyone will wake up and actually understand AAPL’s fundamentals are so amazing)…

  3. ok, so now it is time to cue up the chorus about “anal-ists” and their impact upon share price.- (which i must say is a very tiresome refrain)

    so, that aside, despite record profits- again – the numbers did not meet “expectations” and we get clobbered – again.

    rather than bemoaning their overweight and negative impact, perhaps someone might be interested in doing some investigative journalism.

    how about “somebody” looking into exactly who generates these high expectational figures, who they work for, how these figures are generated, and how they become the consensus expectation, which mr. apple never seems to be able to meet.

    just keep in mind the two prime axiom that explains nearly everything in politics and business – “what’s in it for them” and “follow the money”

  4. I really hope that the finance department at Apple is sending large buy orders for AAPL stock this morning. I was hoping that they were going to say on the conference call that the board authorized additional share buybacks beyond the 10 billion authorized so far.

  5. It’s about growth, folks. That’s what drove the price to where it was, and that’s dragging the price to where it is. Sure it was a great Q in absolute terms, but virtually unch from a year ago. That’s after an iPad Mini and iPhone 5. All is not rosy in the garden.

    1. 14 weeks last year and 13 weeks this year…unchanged?

      iMacs unavailable from October to early December?

      iPhone 5 manufacturing constraints?

      All of these were issues that affected the quarter’s numbers.

      1. The one week shortened quarter was figured into the analysis. And yes, you do mention the facts correctly. iPad Mini, iPhone five and Mac constraints did affect sales. Had they had enough product available they would’ve had more sales and generated more revenue and the earnings call would have been better. They didn’t and it wasn’t. Those are the facts.

        1. I don’t see where they figured in the 14 weeks:

          ““For the fiscal first quarter, it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier,” Navarro reports.”

          That’s not “no growth” as was stated elsewhere.

          As to “they didn’t, it wasn’t” BS, what is being discussed here is the long term viability and profitability of Apple. To judge that on the basis of a snapshot in time, particularly when that snapshot just happens to include aberrant data (new product expenses, manufacturing glitches, etc.), is either stupid or dishonest, take your pick.

          1. Zeke, a snapshot in time is what earnings are all about. You can bury your head in the sand hold your breath whenever you want to do but that’s reality. Besides, Apple was a momentum stock that’s why it ran so high so fast. Too high too fast. Was Wall Street supposed to keep people from buying Apple as it ramped up to $705 in the blink of an eye? Why wasn’t it manipulation all the way up to $705 but it is manipulation down to $460? You can’t have it both ways Zeke.

            1. “Why wasn’t it manipulation all the way up to $705 but it is manipulation down to $460?”

              Because the fundamentals indicated that it should have been at at least $800. That’s why.

              And a balance sheet tells you very little about a business and its prospects. That’s a snapshot. If that’s how you invest then you truly have been just lucky (if, indeed, you’ve made any money at all).

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