Apple’s not dead and never was

“Is anyone really that surprised to see Apple’s (AAPL) stock rally the way it has after it announced its second quarter earnings and upcoming plans?” Matthew McMichen writes for The Motley Fool.

“It always amuses me when the market, driven in the short term by the whims and subjective feelings of its uninformed participants, overreacts to bad news and writes a largely successful company off as a dying species,” McMichen writes. “This is exactly what happened over the past 7 months as Apple’s stock plummeted nearly 77% [sic] (from September 2012 to April 2013, pre-release).”

MacDailyNews Note: Apple’s stock declined some 45%, not 77%, over the time period stated. (Thanks to Jersey Trader for the heads up).

McMichen writes, “A 77% drop for a company that has historically proven itself as a leading innovator and competition crusher? A decline that significant for a company such as Apple simply reeked of an undervaluing due to investor overreaction.”

Read more in the full article here.

MacDailyNews Take: The fleecing of the sheep looks to be done this time around. Time for the shearers to turn profits on the wool!

Related articles:
Apple closing above $463.58 would signal sustainable rally – May 2, 2013
Apple beats Street on EPS and revenue; ups quarterly dividend by 15%; ups buybacks to $60 billion – April 23, 2013
The Street beats Apple – January 24, 2013
Apple’s results aren’t the total disaster implied by the market meltdown – January 24, 2013
Apple stock drops 12%, trips short-sale circuit breaker – January 24, 2013
Apple CEO Tim Cook: ‘No technology company has ever reported these kinds of results’ – January 24, 2013
Apple’s all-time record earnings drag down NASDAQ futures – January 24, 2013
Gundlach: Apple ‘a broken company’ – January 24, 2013
Apple’s all-time record quarterly earnings disappoint – January 23, 2013
Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’ – January 23, 2013
After posting new all-time record revenue, Apple shares collapse in after-hours trading – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013

16 Comments

  1. Ok, math isn’t their strong point. (Not sure how they evaluate stocks without math.) A drop from $705.07 to $385.10 is 45.38% not 77%.

    1. For those still in grammar school:
      45.38% = ( 1 – $385.10 / $705.07 ) * 100%

      77% would have been $162.17 per share and if Apple did not go private prior to that someone else would have bought Apple with Apple’s own assets.

    2. Maybe they are calculating what AAPL need to grow to get back to $705.07 from when it was $398.34 a share. What ever it is, they really do not understand math and need to share their thoughts on something they really understand. Stocks isn’t it.

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