“Most of the time, the CEO has to answer for a company’s cratering stock price. Investors clamor for accountability when things go bad, and typically a stock’s decline is the direct result of a deteriorating business,” Evan Niu writes for The Motley Fool. “Dropping share prices should usually be commensurate with aforementioned fundamental deterioration, if there is any. That’s not always the case, though.”
“Investors should stop trying to blame Tim Cook for Apple’s [AAPL] fall,” Niu writes. “Cook has delivered numerous records for shareholders. Both holiday quarters that he has presided over set all-time highs for all of Apple’s most relevant performance metrics (other than share price). In nearly every quarter, Cook has put up iPhone unit sales higher than anything Apple ever reported under Steve Jobs. iPad units under Cook have also soared to levels unseen under Jobs.”
Niu writes, “Last quarter was quite literally the strongest quarter Apple has ever posted in terms of revenue, net income, and unit volumes for the iPhone and iPad, even if it wasn’t enough for investors… None of the above comparisons to Steve Jobs are intended to suggest Cook is better than Jobs overall as a CEO; Cook is just different. Rather, investors need to refocus on the company’s fundamentals over the share price when assessing CEO quality. In those aspects, Cook has performed admirably.”
Read more in the full article – recommended – here.
MacDailyNews Take: Ah, it’s always nice to start the day out with a bit of sanity, for a change.
[Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]
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