“Sanford Bernstein senior equity analyst Toni Sacconaghi said Thursday he agrees with the assessment of Apple’s stock value by Jeffrey Gundlach of DoubleLine,” Fred Imbert reports for CNBC. “‘If you adjust for cash, and look at cash flow, its cash flow multiple is more like 10 to 11 times. The market’s at 15 to 16 times, so it’s trading for a significant discount,’ Sacconaghi said in a CNBC ‘Squawk Alley’ interview.”
“Sacconaghi made his remarks a day after Gundlach said the tech giant’s stock is ‘reasonably priced,'” Imbert reports. “Nevertheless, Gundlach added that due to its size, investors may not be able to compound their growth.”
“‘The [Apple Watch]? I don’t know if that’s really going to set the world on fire,’ Gundlach said,” Imbert reports. “Regarding the wearable, Sacconaghi said, ‘It’s really important to realize that this is the first generation and the first iteration, and there isn’t a compelling use case for the watch today.'”
Read more in the full article here.
MacDailyNews Take: Regarding the Apple Watch, which we’ve now been wearing every waking moment for the last 2 months and 23 days, it doesn’t sound like either Gundlach or Sacconaghi have worn an Apple Watch for even 2 minutes and 23 seconds.
Those who wear Apple Watch understand very well that the uses are compelling and myriad. Those who’ve only read about Apple Watch or seen it in TV ads sound exactly like Gundlach and Sacconaghi. Just as in the early days of iPhone, there are the Haves and the Have Nots. The iPhone users understood what was coming, that everyone would want one soon enough, just as Apple Watch users know it today.
Go get yourselves Apple Watches and actually use them before giving your next interview, boys. Parroting back snippets of planted FUD makes you sound silly.
There are a lot of tech and financial anal-ists working for FUD inc. 🖖😀⌚️
All this “the Apple Watch is amazing and non-users don’t understand” BS is exactly BS because it’s self-creating. You love the watch BECAUSE you’re the kind of person that wants what it does and bought it immediately. But guess what: there’s a world out there of people who don’t get it, don’t want it, think it’s bulky, confusing, ugly, garish, and unnecessary. So convince us. Don’t ridicule us. Yeah, we’ve looked, we’ve researched, we’ve tried them on. Not impressed. Sorry not sorry.
Agree. Ordered one. Got it. Wearing it. Killer features: Tells time when you glance at it, usually. Sometimes saves you the trouble of removing your phone from your pocket when you get a text/email. Not sure why MDN is apoplectic, doesn’t come with Marissa Mayer on a yoga ball.
Watch is going to be a good product for Apple, but it’s not going to significantly affect Apple’s earnings one way or the other. It’s going to be a positive profit maker, but more along the lines of iTunes, App Store, TV, etc. Anyone who thought Watch was going to be the next iPhone/iPad was an idiot, especially when you need an iPhone to pair it with to truly use its capabilities.
You’re the idiot here💥😱⌚️ Yeah I’m calling you out as an idiot😜 so sue me already👀😂😩😃
That’s sort of the point. Even without Apple Watch, AAPL should be valued MUCH higher. Whatever Apple Watch does, it’s a “bonus.” And it will turn out to be a bigger bonus than many of these analysts expect, even initially; it will become bigger over time as a higher percentages of iPhone owners adopt it as an integral part of using an iPhone.
That’s the secret of Apple Watch. You start off with half a BILLION potential customers during the first year. These are Apple’s EXISTING happy customers, who have said YES to Apple for at least one iPhone. Not random people who have no relationship with Apple. Selling to existing customers is a much easier YES, especially when they are highly satisfied.
Apple gets a small percentage of that HUGE existing customer base to say YES to Apple Watch during 2015. Even 5% (1 in 20) means about 25 million sold, and Apple Watch is successful. Over time, increase that percentage steadily, while optimizing profit per unit. There’s no need get “everyone” to wear an Apple Watch overnight.
In one way, this is like the Mac business. There is a HUGE pool of existing Windows PC user (many have not upgraded since Windows XP and feel alienated by Microsoft). Apple shreds the industry average every year by convincing a small percentage of those Windows users to “get a Mac” (for the first time), while optimizing profit per unit.
Revisit the apple watch 10 yrs from now. It will be stand alone if needed and will connect with more powerful devices if needed but everyone will have or want one. IMHO wearables will become the most important individual product in peoples lives.
I like my Apple Watch a lot but I know that I can do without it just like I know that I can do without my iPhone. If I really wanted to, I could use a non-smart phone and wait until I got home to look at my computer, I could not even own a cell phone and just go to the nearest payphone, I could not even use my MBP but use a Dell POS. I like the new modern quality toys and am really enjoying my Apple Watch. I don’t have to do without anything that I really want.
Pay Phone? I haven’t seen one in years.
Hey “big media,” where’s the story about AAPL making $48.6B “appear” for Apple’s investors, in only ONE WEEK (5 days) of trading? 🙂
If AAPL is “reasonably priced” while steamrolling over everything in its path(s), and generating ungodly sums of cash in the process, then how do we rate such perennial boat anchors as MS and Amazon? “Ridiculously priced”? I’ll never make sense of this game, which is likely coz I ain’t one of a few dozen Wharton grads who run this whole scam.
An economist I once knew explained to me how everything was some kind of scam, although known by a variety of different names. When one was exposed, the establishment conspired with the press to change its name, thereby keeping the public distracted.
The biggest scam of all was market valuation, which is subject to all sorts of tampering, aka business as usual, with the regulatory agencies continuing to receive fat, plain brown envelopes to help in their so-called oversight of the hen houses.
Apple Watch is the greatest invention ever produced by Apple now and in the future. People will be erecting statues in honor of the wrist bound device and naming their children Apple Watch. Apple Watch wearers will attain divine status and, when the new Apple Mothership in Cupertino is complete, will board the interstellar vehicle and travel to Arcturus.
Can I come too, I’ve got an iPhone 6+ 128G but not an apple watch 😓
Shame on you. You may not enter.😩⌚️💥😱
I sure hope you’re right. I’d give anything to get off this sorry excuse for a planet.
Get real. The planet is WONDERFUL. It’s the parasitic infestation that’s the problem.
Yeah, that’s what I meant—not planet Earth, but Earth without the chowderheads. If that includes me, so be it.
Is that you fred the troll?
although there might be some truth in that big investors don’t pour money into aapl because of standard investment concerns of ‘too big, one product’ etc. I believe there is more to that for the crazy LOW valuation of the stock.
I believe it’s EMOTIONAL.
Apple’s success drives PC dweebs to distraction and the middle aged managers of mutual funds, hedge funds, pension plans, billionaire investors are practically all PC Excel Dinosaurs.
My proof ?
It’s anecdotal but I several years ago I withdrew my money from the ‘TECH’ mutual fund from my bank (one of the largest in the country). The TECH fund had NO aapl ! Zero in its basket which had Dell, HP, RIM , Msft…. Totally bizarre. I can only conclude that like many PC EXCEL dweeb managers (for their own ego — i.e they are ‘right’ and ‘superior’ using Windows and not Macs) refuse on emotional grounds to invest in the the ‘toy fruit’ company.
Several years ago my accountant, a nice guy , but another PC EXEL dweeb asked me to sell all my ‘vulnerable’ aapl stock, several hundred thousand dollars richer I’m glad I didn’t listen to him…
I changed brokers because of the same BS.
People who have not worn the Apple Watch and therefore don’t know about it are not at fault. The case has not been made compelling enough to make people want to jump in. I wanted an iPod, iPhone, and iPad right from the start. I’m willing to wait and see on the Apple Watch.
Unless one is strapped for cash I don’t see the point of waiting for the 2nd gen watch. No doubt the next one will be siginificantly better, but the 1st gen will still have a good resale value, so for much less than a buck a day you can start now instead of next year. And any extra bands you might buy will surely still work on the next one.
I’m not strapped for cash, but I don’t upgrade my Phone every year and wouldn’t update a watch every year either. Not getting an Apple watch now would keep me on an alternate year schedule with my phone (assuming I did look at every two years). I’ve stopped using my iPad because my iPhone and Mac basically cover all my needs in that regard. I could afford to update my Mac every year, but I don’t because I don’t need to. On the basis that I still need/want a phone an Apple Watch has to offer me more to justify buying it, and if it’s something that in two years will have been made effectively obsolete by advances in software and hardware then I’d rather hold off for a year or so, then keep it for a good few years. I would guess that an Apple Watch 2 or 3 will have a longer life than an Apple Watch 1 as the hardware improves – much like the iPad 2 held on for years longer than the iPad 1.
Agreement, obviously: “this is the first generation and the first iteration”
Disagreement, obviously: “there isn’t a compelling use case for the watch today”
So many AnalCysts enjoy pulling silly things out of their back orifice. 🙄