Apple beats Street, but treated as second class

“On Monday afternoon, technology giant Apple (AAPL) reported its fiscal fourth quarter results,” Bill Maurer writes for Seeking Alpha.

“The company beat on both the top and bottom line, and issued guidance that was decent. Unfortunately, shares had run up well into this report, and were barely moving after this report,” Maurer writes. “Again, this was a perfect case of how Apple is treated unfairly when it comes to large cap technology names.”

“Apple shares bounced around in the after-hours session. Remember, shares had rallied from $419 to $530 since the last earnings announcement, so this could have been a “buy the rumor, sell the news” event. However, I think this is a reaction to the slightly disappointing guidance, and it misses the big picture, the solid Q4 beat and revenue guidance. Again, this is a case of Apple being treated unfairly,” Maurer writes. “Apple trades at a significant discount to its peers, and yet it performs much better. Did Apple beat due to reduced expectations? Nope. Going into the Q3 report, Apple estimates for Q4 were $37.11 billion and $7.96. It came in well ahead of those numbers. Did Apple beat due to a huge tax break? Nope. Does Apple use non-GAAP numbers to make it look a lot more profitable than it really is? Nope. Does Apple have the largest buyback in corporate history, with the financial flexibility to buy back even more? Yes it does, but apparently, that’s means a huge discount to Google and Microsoft. Again, Apple is being treated unfairly.”

Read more in the full article here.

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42 Comments

  1. Stocks are rigged right now. Manipulation leaning towards Google and away from Apple, tricking investors to sell their stock, or through deceitful analysts “predictions”. Think about that for a moment.

    1. I’ve said it before and I’ll say it again.
      Wall street is nothing but crooks, liars and killers.

      They would suck the life out of any company if it meant they could get an extra $10 to put in “their” account.

      Shooting them is too nice, they need to be hanged, slowly.

        1. botvinnik, you epitomize Russell’s statement: “The trouble with the world is that the stupid are so confident while the intelligent are full of doubt.” — Bertrand Russell

            1. And I sincerely doubt your intelligence.

              You weakly attempt to force your narrow viewpoint on every topic and at every possible opportunity, no matter how unrelated. It’s just plain sad.

            2. thanks, here’s a more apropos Bertrand Russell quote:

              “One should respect public opinion insofar as is necessary to avoid starvation and keep out of prison, but anything that goes beyond this is voluntary submission to an unnecessary tyranny.”

      1. … about the “pros” in the market. I make a few dollars trading stocks and don’t steal, lie, or kill to do it.
        It’s easy. Find a “solid” stock paying a dividend in a few weeks and buy a few shares. Sell it just before the dividend is paid. You ought to earn a couple percent in a couple of weeks. Doesn’t suck ANY life out of ANY one.
        Bot … we survived the Bush league, so man-up and deal with the Obama years. He’s a conservative Democrat – YOU are a bigot.
        AAPL has been abused for over a decade. Fund managers, I suspect. Doesn’t really hurt Apple, but sure doesn’t do honest investors any good.

        1. Obama is a fascist. I am immune to your lame race-card baiting. I fought against the tyranny of Dubya with the same intensity..however, he is no longer commander-in-thief. It was announced in almost all the papers.

            1. you may compare anything you wish, but can never convince any rational American that Barack Obama is a “conservative Democrat.” That, would land you, by extension, as a big a liar as The Messiah himself.

          1. furthermore…

            Over a hundred years ago, Booker T. Washington noted: “There is another class of colored people who make a business of keeping the troubles, the wrongs, and the hardships of the Negro race before the public. Having learned that they are able to make a living out of their troubles, they have grown into the settled habit of advertising their wrongs — partly because they want sympathy and partly because it pays. Some of these people do not want the Negro to lose his grievances, because they do not want to lose their jobs.”

    2. Never forget the so-called “stock pools” of the 1920s. They actually paid the press to right glowing reports about certain stocks and damning reports about others. Not much as changed in Wall Street.

    3. I agree, plus I’m curious why TC and Co. would up guidance a couple of weeks ago–the small beat didn’t seem enough to warrant any such announcement, didn’t seem to work out for the stock price at least–not whatsoever, makes me wonder and question the sophistication of the board and upper management team lately–the last couple of years in particular ??

  2. Pack up and move Apple, move to Germany and Japan but keep the designing team in the US. You will be loved and respected there. Americans’ analysts, WS will never treat you right regardless you great you are doing.

  3. More reason for Apple to find a way to go private. The Stock Market has turn in to ultimate con game. Winner are loser and loser are winners, no wonder Apple is treated as second class because they are always a winner.

    1. “Apple” is a corporation (representing a large group of owners, including me). Apple the corporation has no opinion, favorable or otherwise, on going private. It is simply a legal entity.

      Cook or Gates or some group of people or organizations could attempt to amass sufficient funds and lines of credit to tender and offer for Apple or even attempt a takeover of Apple. But it would take a *lot* of money to have any chance of success – at a minimum, I would guess at least 30% to 50% above its current market cap. To start with, Apple has nearly $150B in cash and marketable securities and relatively little debt. Additionally, Apple is earning tens of billions per year. You would have to do a lot to convince me to sell my (small number of) shares. That probably holds true for most investors.

      Besides, how can you be so confident that Apple would do better by its customers as a privately-owned company?? What if Ballmer had the controlling interest?

  4. A new iOS that disappoints with its appearance while actually performing better than the previous version. Form over function is a killer. A new OS that ushers in dumbed down essential apps throughout iWork and iLife makes it appear that the company is now writing software for actual children – not just the sophomoric crowd that dominates MDN’s discussion boards. An amazing new Mac Pro that leaves everyone wondering just what kind of truck the mobile device company has rolled out further confusing consumers and Wall Street alike. All this points to the very essence of the Tim Cook era in which there is very little confidence among investors even while consumers are snapping up the new stuff. Toys and gadgets have a limited life span. Investors aren’t interested in trying to figure out when Apple’s will run out. Results? Take a look and accept the stark facts of life in the once great company.

    1. Apparently u believe what u think is the absolute truth …
      I have news for u! It is not!
      Next time add ” in my opinion” to you posts… Will make u sound more legit and not so much a TROLL!

  5. Gee talk about stating the obvious. I wonder if there is a non corrupt journalist who is willing to get to the basic facts of who is treating Apple as second class, how they are doing it and most importantly how Apple can be treated fairly, though that might take government intervention so that probably won’t work.

    Otherwise, it’s just the obvious to the numbers.

  6. Why does everyone worry so much about this since it can only impact the short term valuation of the stock. Don’t forget that this is a business and profits will eventually win the battle regardless of what anyone says.

    1. Because Amazon and Netflix represent all that is wrong, with business in America (Wall Street, banking, insurance), note Apple isn’t perfect they just get more things right.

  7. All Apple needs to do is to leak it is considering taking the Company private. The stock will soar because everyone will demand a “fair valuation” to submit their stock for redemption.

    1. So you understand that they can’t just “decide” to go private, right? The only way that could happen is if an outside group of investors came in and offered the board a reasonable price for the company. The CANNOT use the cash they have on hand to take the company private.

  8. Ha! No change in Wall Street’s attitude then.

    They just luurve treating Apple as Cinders before the ball.

    Doubt there’ll be any change, no matter what. And I bet Apple management doesn’t lose too much sleep, either.

  9. my personal feelings for why this is so is because human beings, above ALL, want to be RIGHT. The current crop of investors are leftover Microsofties, and they simply can’t fathom how wrong they were, and they are clinging to the belief that Apple is doomed, thinking that this time it will be Google/Samsung, etc. that will kill them. Don’t worry, they are all gonna get old and die. The next generation is 90% Apple, and when they hold court, Apple will be valued at the normal rate (2x current).

  10. This is the way Apple has always been treated by the market.
    They still to this day don’t understand Apple’s business. They think Apple has to do everything like everybody else. Make cheap crap and a lot of it. That’s the markets idea of a company and how it’s supposed to do business. They are never happy with Apple’s results no matter how great they are. They always have excuses to pull Apple’s stock down even when 99% of the time they are lame and totally untrue. Many times they will pull Apple’s stock down when other businesses do poorly yet have nothing to do with Apple what so ever. I really give up figuring what they are really after that would really make them happy. Yet in the end Apple is still making record profits and the greatest products that everyone loves.

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