“Is it possible that a company that grew to be the dominant axe in Technology, became the largest capitalization firm in the world, and created many new categories of products, is still misunderstood by Wall Street and the Financial Press?,” Barry Ritholtz writes for The Big Picture.
“The short answer is yes,” Ritholtz writes. “Apple (AAPL) remains an enigma to much of the Street. The longer answer is nuanced and complex. and therefore ignored by most players.”
Ritholtz writes, “In no particular order, lets look at a few points on Apple prior to their earnings report this afternoon: Apple garners most of the profits in the mobile space. Android may be capturing market share, but you get that when you give your product away for free. Will Apple use some of its huge cash hoard to raise its dividend? Possibly. Will it also do more stock buybacks? I hope not — its a colossal waste of money to anyone except Wall Street financial engineers.”
Much more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “Daddy” for the heads up.]
Not misunderstood. AAPL was the “colossal” ATM that funded the cash that moved into the other stocks.
When you upgrade everything, there is no catalyst to get people to buy AAPL now. When Timmy said, “be patient”, he told everyone, take cash out of AAPL buy something else make some money then buy AAPL later. Just don’t hold AAPL now. Tim Cook’s “Be patient” was a real amateur statement to make and I should have taken his advise and sold some to buy back in later.
I really miss Steve Jobs when these idiots screw up like this.
Yes, misunderstood is the understatement of the year.
Apple has so many revenue streams and areas of evolving development that go far beyond the obvious high profile popular ground breaking products. Also Apple refuses to spoon feed idiot analists and only issues general guidance relating to earnings…
Used to be up to analists to due their research and due diligence today they rely upon gossip and innuendo and google for what they consider a full understanding of Apple. This is why Apple always makes mince met out of their idiotic expectations, that never see the whole sum of Apple’s parts and therefore always fall short. Not because “Apple sandbags them”.
The author misunderstands what is going on. Wall Street manipulators on the other hand understand it very well
When Apple lets others talk for them or about them and don’t say anything to defend its self….this is what you get. It’s the companies own fault for letting this happen.
I think what you said is at least partially correct. What is the purpose of a public relations if it’s not used. I honestly believe a good public relations department could clear up at least half of the FUD that is being spewed about Apple. For a company to remain completely silent makes it seem as if it just doesn’t care. However, there is that freedom of the press thing that Apple can’t stop.
That’s the difference between Wall Street and morons, morons don’t misunderstand Apple.
The financial press may be clueless but the hedge funds and brokers understand Apple like bank robber Willy Sutton understood Banks.
“It’s where the money is.”