Apple would be worth $1 trillion if market valued it like Steve Jobs-run company

“In a note that made waves this weekend, Global Equities Research’s Trip Chowdhry recently shared his displeasure with Apple Inc. management,” Jake Mann writes for Benzinga. “‘Tim Cook and the rise of Bozo Culture at Apple has destroyed $486 Billion of potential shareholder value,’ he wrote.”

Here are some key quotes from Chowdhry’s thesis:

• “Apple urgently needs to institute a “No Bozo Policy”…Investors are increasingly getting concerned about “Bozo Explosion” at Apple.”

• “Apple needs a new CEO: Jonathan Rubinstein, the father of iMac and iPod, Board Member of Amazon.com and a close associate of Steve Jobs…Tim Cook can go back to his Operations role.”

• “Apple needs a new CFO: Fred Anderson, he was CFO during Apple’s resurrection under Steve Jobs… Luca Maestri can go back to his Accountant role.”

Read more in the full article here.

MacDailyNews Take: We don’t call him Trippy Chowderhead for nothing.

They only have 60 days left to either come up with something or they will disappear. It will take years for Apple’s $130 billion in cash to vanish, but it will become an irrelevant company … it will become a zombie, if they don’t come up with an iWatch. — Trippy Chowderhead, Global Equities Research, March 20, 2014

SEE ALSO:
Analyst: Investors have ‘zero confidence’ in Apple management – September 15, 2015
Analyst: Apple to unveil Apple TV App Store as soon as next week – October 8, 2014
Apple secretly developing a 3D printer? – May 16, 2014
iWatch: Apple is not here to entertain you – April 14, 2014
Fire Tim Cook? Absurd. Cook has added $140 billion to Apple shareholder value since becoming CEO – March 19, 2014
Apple can’t replace Steve Jobs, but it must try or something – March 12, 2014

31 Comments

  1. Tim Cook definitely doesn’t inspire confidence in Apple’s future. He may be a good operations guy but my impression of him hasn’t changed much since his atrocious, first appearance as CEO introducing the 4S. The main change has been reducing his public role and having guys like Schiller and Cue carry the load. What’s the point of having a guy as your frontman, when he’s not a good public speaker and communicator?

    1. Well, do you think Satya Nadella is some grand CEO? I doubt he is yet Microsoft has seen some fairly large share gains in 2015 while not making all that much revenue. I doubt there is that much of a difference between Nadella and Cook. It’s unlikely Apple will come up with another Steve jobs but anything is possible.

  2. Maybe a bozo, but echoes a growing chorus identifying the real and only problem with AAPL and the once great company that made things that just worked and were the envy of the entire tech world. Sadly, not more and the singular cause of this condition – Tim Cook.

    1. Ah, well… I’ve been polite to this point, but — you PROMISED to stop with the Tim Cook drivel, Jay. And I keep pointing that out. So today I’ll just say “fuck off”.

      1. Don’t bother with Jay’s word or promises, he’s shown amply that he’s not on the side of truth, he’s a troll, feed him and watch him dance.

        For the record of course here is his comment, from Sept 21 2014:

        “You will be pleased to know that I’m about done with saying what I say on this board – it’s clearly been therapy for me and I’m very close to not needing it any more – I’ve reached the realm of apathy.”

    2. Apple had an uninspiring year….lots of half baked solutions… I agree…..And believe you me i am Pissed as can be looking at some of the stuff they put out and how they launched them….

      But..
      Apple has never made more money than they did in 2015…. No company in historty ever has ! That is. Fact nit an opinion! Lets keep that in mind before u all jump on the band wagon of ousting Tim Cook.
      Apple At Steves time.. Was a much smaller company…. Lets keep growing pains in mind when you decide to bash Tim.

      I personally Am looking forward to a great and inspiring 2016 from Apple…
      An Apple that stabilizes and learns from its own mistakes… ….
      I Believe Tim is the man to pull that off.. Why?
      Because his head is not in the clouds while riding his ego……
      Didnt Steve personaly pick him as Ceo.. After years and years and years of having him as his right hand man?
      Was Steve completely wrong and wrong for so long ?
      The Steve that is so superficially named in the heading of this article?

  3. I call bull.

    People didn’t respect Steve when he ran it, either. Oh, sure, “the faithful” did, but outside that circle, not so much. Little has changed in that regard. Steve is dead. *gasp!* Tim is CEO. And Apple is still Apple, and making the best products on the market. Could they be better? Sure. But that was always the case, too. Steve had his flops, but the directed Apple to the insanely great products we know and love. I love my iPad Pro. My wife and sister love their AppleWatches. Still insanely good, despite some hiccups along the way.

  4. Um…No.

    Apple’s stock is worth what is is worth; no more, no less. It is also not representative of the value of the company nor its performance.

    The sotck is down because the market is down. The market is down because of factors not related to people’s desire for consumer goods.

    There are wars and political instability throughout the world. China’s economy is ready to tank.

    Americans have major political races this year.

    Trip Chowdhry is trying to move his firm into a favorable position vis a vis Apple Stock.

  5. Sure… And pigs could fly if they had wings. Steve Jobs is long gone and he’ll never be coming back. I don’t need Apple to become a trillion dollar market cap company. I’m only asking to at least value Apple on par with other profitable tech companies. If Apple can’t be valued on par with at least Microsoft then I truly don’t understand what makes a company valuable.

    It’s been said that tech companies should have higher multiples than oil or utility companies, but ExxonMobil has a P/E of 16 to Apple’s P/E of 11. AT&T has a P/E of nearly 40. Exactly, what type of company is Apple being valued as for a company at the top of its field in earnings? Something just doesn’t seem right apart from the fact that investors are entitled to invest in companies that they think can offer them decent returns. If Apple isn’t seen that way, then maybe Apple is somehow at fault.

    I may be too stupid to understand what other investors are able to understand. For me, as long as a company has relatively high revenue, profits and a loyal and solid customer base it should be valuable whether it can grow double digits every year or not. Maybe that’s too simplistic a view. Consistently recurring revenue should count for a lot as far as an investment is concerned.

    1. That’s because you are trying to use logic in the stock market. Which does not apply. The market is not rational. It is irrational.

      In theory, traders are skating to where the puck will be, not where it is now. So their thought on AAPL is that it can’t continue to grow (“law of large numbers”, they say) and should shrink, by extension, as others poach their customers. Of course, this is and always has been BS, but that’s how they think.

      Instead, they envision that AMZN will somehow manage to expand its revenues to more than the GDP of most countries (because the law of large numbers doesn’t apply to them for some reason) by pricing products so low (at no or negative margin) they drive their competitors out of the e-commerce space. At that point, they use their near-monopoly power to raise prices so their margin will rise from approximately zero (they are actually negative if you discount their web services division) to something much larger, all the while ignoring that the moment they do raise prices, dozens of firms are there to compete with them and eat their lunch. In short, these investors are willing to shell out for a P/E of several hundred for an opportunity to drink the Bezos Kool-Aid that they should “be patient”. And here’s the killer, even if that were all true and it worked and they drove even Walmart and Target off the face of the earth, AMZN is *still* never going to give a return that justifies its **current** stock price!

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