Apple’s biggest problem: Wall Street

“It’s truly amazing to see the market react to a fantastic quarter from Apple with such indifference,” Bob Ciura writes for The Motley Fool.

MacDailyNews Note: “Indifference?” Make that “outright hostility.”

“Shares of the technology giant fell 4% on the day the report was released, and the stock has continued to gradually dip lower — even though Apple’s putting up quarterly numbers that any other company would kill for,” Ciura writes. “Apple grew revenue, the iPhone average selling price, gross margin, and earnings, all by significant percentages year over year. Yet the market seemed disappointed. For investors wondering how this could be possible, the answer may simply be that Apple once again fell victim to Wall Street’s short-term thinking.”

Ciura writes, “While Wall Street analysts obsess over whether Apple beat expectations by a wide enough margin, long-term investors shouldn’t be discouraged. Apple stock shouldn’t be viewed as a trading vehicle, but instead as a long-term investment in one of the world’s strongest businesses.”

Read more in the full article here.

MacDailyNews Take: Ah, it’s always comforting to hear a voice of reason, as rare as it may be of late.

SEE ALSO:
Apple stock will rebound for the same reason it’s swooning – August 6, 2015
Morgan Stanley: This is your chance to buy shares of Apple at a discount – August 6, 2015
Apple stock implosion shreds $113.4 billion and counting – August 4, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015

14 Comments

  1. You don’t say!!!!

    Wall Street is the symptom, the problem lies within the legislatures. They are meant to regulate markets and have set up bodies to do so., but do they act when confronted with such blatant manipulation of stocks? NO!
    Because the next time they have to campaign to keep their offices, they will call upon the manipulators to fund their electioneering.
    Call a spade a spade but don’t call a trowel a spade to win favours from a fork!!! Even though a fork has many good uses, it can and will be used to stab you or drive you out of office by pitchfork carrying mobs!

    1. “Wall Street is the symptom, the problem lies within the legislatures.”

      I’d suggest not. Wall Street isn’t a SYMPTOM, it’s THE DISEASE. Full of heartless, psychopathic scum. Yes, the doctor should do more about treatment. But it’s disgusting they should need to do so much. (And no, right-wingers, “market forces” won’t control Wall Street.)

      1. It seems clear that Wall Street has a lot more control over what happens in Washington than Washington has over what happens on Wall Street.

        Wall Street is concerned with accumulating Wealth and Power – and lots of both. Wall Street is not concerned about patriotism, the people, the welfare of the nation, justice, fairness, equality, freedom, happiness, health, or anything having to do with the quality of life of the people in the U.S. or anywhere else. Wall Street is concerned with accumulating Wealth and Power, not the best interests of people.
        It is the function of government to provide a socio-economic structure within which its people can thrive. As long as Wall Street, corporations, and the super wealthy have control over Washington (& the Republican and Democratic Parties) the deck will remain stacked against 99.5% of the common citizens.

        The only solution seems to be to elect independent outsiders with no Wall Street, Corporate, Wealth connections.

      2. There was some collusion involved in this. . . the Financial news media was ready with completely NEGATIVE news headlines that were released at the stroke of the close of market on the day Apple released it’s 3rd quarter financial report claiming huge misses in EARNINGS and then claiming an 18% -23% forward looking growth guidance for the next quarter as “disappointingly low,” when they were anything but misses or disappointing! This was misleading and DELIBERATE!

  2. I’m sure Amazon is viewed as a long-term play but it’s still beating the crap out of Apple when it comes to share gains over the last five years. I don’t see Jeff Bezos being bothered by unhappy investors. It’s funny how Apple is always considered overvalued, but truthfully I haven’t seen Amazon’s P/E for years so it’s hard to tell whether it’s overvalued or not. Most investors are patient with Amazon, but Apple grates on investors nerves every damn quarter. Apple has attracted the worst investor scum-buckets and can’t get rid of them.

  3. I think Apple stocks was very smooth for a while, because of the buybacks, dividends, and stock split designed to reduce it’s volatility. But now, it seems like it’s starting to go back to the old up-and-down days of AAPL manipulation. Hopefully this latest round of volatility will be short lived, but either way, I don’t think it affects Apple’s stock price over the long run.

    Trader shenanigans like this seem to have no effect on Apple stock’s long term growth. Historically, holding Apple stock over any long enough period time has been very profitable. Apple investors do well when they ignore the jarring downs (and ups) that correct each other over time and stick to the fundamentals.

  4. BS.
    Another apologist for WS instead of calling it for what it is.
    And to think that APPLE management has given billions to WS thru the buy backs.

    The buy backs are the biggest scam costing Apple shareholders while WS laughs. Let me sum this up assuming $40 billion in buy backs.
    Loan $40 billion WS fees (30 basis points): $120 million
    Buy shares transaction fees: (30 basis points): $120 million
    Sell shares transaction fees: (30 basis points): $120 million
    Based on the fact that buy backs are negotiated prices and past history (Q average pps was 124 while buy back price was 134) WS has another spread of 10/124 = .08 x $40 billion = $3.2 billion.
    Total WS: $3.5 billion while Apple share holders loss in equity $150 billion from price manipulation. Mind you this is not counting the options sales that WS can arbitrage based on the negotiated price of the buyback.
    Cook is so naive. They are after him. They want another ex-soda salesman like in there. Already other carnival barkers are after that position. They are salivating about the chance to get a piece of the cash hoard.
    Why do you think one company is trying to say that they are in the forefront of car and battery technology? Their genius of a CEO will then be first in line for replacing Cook. Apple’s skunk works is partly about cars and batteries. Cook will be/is being stabbed in the back by apple’sfinancial folks and the board of directors.
    Now if the buy backs were instead pure dividends the stock would not have lost its value. The clamor will rise for Cook’s replacement.
    With another ex-soda salesman like person in place, apple’s technology will be shared with others plus ARMwill be replaced by intel. You can iCal this.
    It is both comic and tragic that Cook has given WS the funding/means to do what they have always wanted to do to Jobs. I really miss the guy. He was the only one who could stand up to these shysters.

    1. You are insulting ethically challenged attorneys everywhere by calling the journalists and traders on Wall Street “shysters.” The ones who pulled this off are low-life thieves and swindlers. At least ethically challenged attorneys provide a service for a fee. These guys plotted and schemed to STEAL what they wanted from the pensions of widows and orphans.

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