“People love to talk about Apple (AAPL),” Eric Jackson writes for TheStreet.
“When the stock was above $700, everyone was talking about it. When the stock dropped below $400, everyone was talking about it,” Jackson writes. “It no longer has Steve Jobs. Its margins are lower. Where’s the innovation? You’ve heard these choruses over and over.”
MacDailyNews Take: Yes, especially from TheStreet.</blockquote
Jackson writes, "Yet, very quietly, Apple is now closing in on $510/share… Today it's difficult to imagine the scenario where Apple stock gets back above $700. Yet, the move may just be starting again."
Read more in the full article here.
Imagine this scenario: analysts do their job. Oh wait….
Imagine this scenario: a companies worth isn’t based on Wall Street gambling.
Apple is on the move like a snail. Google is on the move like a jet with full afterburners. Unbelievable. The day Apple moves one hundred and twenty points on earnings is the day the Earth spins off its axis. Apple is offering dividends and Apple is doing stock buybacks and so Apple stock should at least move upward in some respect.
Yes, it is difficult to imagine Apple ever getting back to where it was a year ago because Apple lost the best chance it ever had of dominating the mobile industry until Samsung took it all away.
Apple should just cut Googles balls of and make Duck Duck Go the default search engine. Even using Bing would ding their business model. Come on Tim this is war! Hurt these guys.
Did anyone else notice a new search option on iOS 7? In addition to Google, Yahoo and Bing is Yandex. I’ve been trying it out
It’s actually not too bad.
“Yandex is one of the largest internet companies in Europe, operating Russia’s most popular search engine and its most visited website. According to LiveInternet, as of July 2013, we generated 62.0% of all search traffic in Russia. We also operate in Ukraine, Kazakhstan, Belarus and Turkey. Yandex is in the world’s top five search engines by number of searches.”
Complete BS. Apple invented the products that are being copied by everyone else. And it did so largely on Cook’s watch as either interim or permanent CEO. That watch has covered most of the last 4 years, when SJ was either gone or very sick. What did smart phones look like before the iPhone (hint: think Blackberry with dozens of buttons)? How successful was Microsoft’s 10 year foray into the tablet market?
Yes, there have been glitches, but I’m unwilling to lay them at the feet of Cook. There were glitches and mistakes under SJ as well. That’s an occupational hazard of being the CEO of a company that’s constantly on the leading edge.
If you believed the pessimism and FUD over the last 4 months you didn’t sell at $440 in June and buy back a couple weeks later at $402, and you’re not now sitting on $100 per share (25%) profit in 4 months. I didn’t. I haven’t believed it since prior to 2003, when I bought my first shares for $7.49. Apple is doing just fine, thanks. And now that the legal system is catching up with those who’ve been ripping off Apple’s patented non-FRAND intellectual property, things are looking even better.
a. Apple has risen about 30% in less than a year – who’s calling that quiet?
b. The world isn’t crazy and/or happy/safe enough to push Apple that high again unless they do something truly industry-melting again, and right now no one can imagine what that might look like (NOT gonna be a watch, TV, goggles, or food processor). Of course, if Apple gets exclusive hold of on-demand, subscription-based content delivery of first-run movies and TV shows at the time of release, fire the stock rockets up. But then again, that’s never going to happen.
Eric Jackson opines, “Today it’s difficult to imagine the scenario where Apple stock gets back above $700.”
Really? That’s taxing to your imagination? Surely you must have a pretty expansive imagination if you’ve been tapped to write for such a venerable establishment as TheStreet. Can’t you apply just a little of that amazing creative talent that lies waiting at your disposal, to imagine such a crazy scenario.
Think a little bit, Mr Jackson: Google’s P/E is 29. Amazon’s is undefined because it is still losing money. Apple must have some insane multiple if it’s beyond your impressive imagination to picture a world where it’s price goes up just 38%.
But wait, AAPL’s P/E is just 12.7. And if you subtract out its cash position, it’s UNDER 9! So the market has valued Google’s enterprise at THREE TIMES as much as Apple, as a multiple of revenues.
So now I guess I don’t understand why you can’t imagine a 38% increase in Apple’s share price, when it would take a 6,900% increase to equal Google’s P/E. Maybe you just don’t have any imagination?
Sorry, misspoke. 320% increase, not 6,900%.
announce an iCar and the stock will shoot up.
Maybe the best way is to announce Apple is going for market share with zero to losing money every quarter. That should sky rocket the stock,,, per Wall Street.
God no. Then we’d have a Samsung car on the market.
I don’t think I could live with that.
That is OK with a little luck the first major recall would hurt em’ bad
Fully agreed whole heartedly, People are addicted to talk about Apple and its late CEO. People liked drama, they talked so much about Apple that how doomed Apple is. There were so much negative headlines and stories about Apple from left to right. May Apple be strong and doing what it’s doing best for many years to come. 🙂
I have a boatload of AAPL and would *love* to believe a quiet, sustained move upward is starting again. But, IMHO, it is not. GOOG, AMZN, and PCLN are the darlings of Wall Street and will remain so for the foreseeable future. Nothing Apple/Cook can do will erase the memory of Steve Jobs and the astronomical growth that occurred under his leadership. Nothing.
I have held this stock since the 80’s and have done very well with it, buying/selling on the up/down market moves . . . but the ONLY reason I’m holding it now is for the $3.05 dividend. Without that, AAPL is, in the words of a great many influential anal-ysts, dead money.
How I do wish it were otherwise.
“You ain’t seen nothing yet!”—Al Jolson, The Jazz Singer-1927.
Apple’s share price will recover when it can show decent YOY growth again. Where’s the China Mobile deal?
Apple kind of needs google for search and Samsung for chip fab, displays and memory. Samsung needs Apple to copy design and for revenue. Google needs Samsung and Apple for Adwords and Display ad revenue. Google needs Apple to copy for Android when they cannot get its features and interface right.
Now picture what happens to the respective stocks when anything in the above equation changes. Ask yourself what are the most likely supply chain changes and why Apple and Samsung don’t want more revenue share of the pie that just put GOOG stock over $1K.
Why can’t Apple do search and search & display advertising better than google?
Why doesn’t Apple just skip the bottom feeder stuff and own interactive 4K TV advertising? Because they probably already are.
The funny thing is AAPL under Jobs did all the same thing it has done under Cook. Big ups and big downs. It rises on stupid rumors and falls on stupid rumors. When it was above 700 rumors were rife about the new TV, that hasn’t yet materialized. When it was at 400 it was the iWatch. The fact is that people day trading AAPL does not drive the stocks up an down. Hedge funds and high profits people do that. AAPL has always been misunderstood and as long as they run their company profitably, it will always do well by it’s shareholders. When it dropped from 700 to 400 I lost 330,000 dollars, but I still had the 450,000 dollar profit I had made getting to 400. It is all relative. Google’s money disappears the day someone else makes a better search engine. Samsung is a diversified company. It’s consumer electronics business has always knocked off everyone else, but it’s semiconductor business is another story. Apple got lambasted for Maps, which is flawed, but matched up with Google fairly well on iOS devices. Apple has Siri for search of a different type. Car iOS will make great strides in iOS devices in cars. When the internet sites like Netflix are replaced by broadcast quality stations like CBS, NBC, ABC, HBO, Showtime, then Apple will disrupt the TV industry. It will replace oil with solar and fuel cells and run factories on batteries. Everything Apple does, it does with an eye upon where the puck is going. Everyone else it competes with has an eye on where Apple is going. Those that don’t compete with it are caught flatfooted when it decides to come into a new industry and anticipate what works better, looks better and has cachet. As long as it does not compete for the cheap seats AAPL will continue to rise over time and surpass anyone’s ability to predict where it will end.