Investors have been “penalizing the company heavily ahead of what is expected to be the slowest year on record for its key product — the iPhone,” Dan Gallagher reports for The Wall Street Journal. “Apple’s share price ended 2015 down 4.6%, marking its first annual drop in seven years and underperforming all major indexes.”
“But that selloff now looks overdone, even if one accepts the prevailing view that the iPhone 6S won’t register much if any growth,” Gallagher reports. “Consider that Apple is now the cheapest stock among the 10 largest tech companies in the S&P 500, once its huge net cash pile of $150 billion is excluded. That means Apple is cheaper than other growth-challenged giants like Microsoft, Oracle, Cisco Systems and International Business Machines.”
“Tech investors have been gravitating toward growth stories; Amazon and Netflix more than doubled in 2015 while Apple languished. But while rapid growth may be sexy, raw earnings power shouldn’t be discounted,” Gallagher reports. “And Apple earned more in its last quarter than those two companies have in their entire existence — combined.”
Read more in the full article here.
MacDailyNews Take: Investors have nothing to do with it. Traders are the issue, not investors.
One more time: Apple earned more in its last quarter than Amazon and Netflix have in their entire existence — combined.
Fact don’t matter to DDs, Donald Trump.
No Compelling Reason to read any of your lame comments… Ha
The 6s camera alone is more thsn a good reason, you stupid dumb igno.
I assume that you already know, (though if you don’t I am scared, very scared) that putting the 3D Touch technology into a giant iPad is at present practically impossible in terms of cost and reliability, until certain challenges are mastered. I guess you and your fellow travellers, would be the first to complain if Apple did so and it didn’t work reliably. And in the end that is the raison d’etre of the dullards like yourself (paid trolls or otherwise) who come on here and spew your half baked theories of technological existence. One moment you complain about things not being implimented and then (usually under some other momentary identity) criticise supposed poor quality when it is included. Apple simply can’t win, which is why its competitors spend more time in trying to peddle this garbage directly and indirectly through compliant lickspittles than actually competing successfully.
Thankfully few in the real world are taken in by such self serving smoke and mirrors because using the products, or reading objective critiques, despite the odd glitch or mis-step that is fundamental to the business but needs more focus none the less, shows the overwhelming superiority of the overall product and eco system as compared to real time competitors.
Facts don’t matter to DDs, ask Donald Trump.
Correct. Investors are not the problem, wall street criminals are.
I’m not pessimistic and lower capital gains equal lower taxes! Take that Obama.
Investors, traders, anal-ists are all to blame. They beat on Apple even with record profits with made up stories of failure for one excuse or another and no real facts to back them up with. It makes me sick. I am just trying to save a few bucks extra for a rainy day and all of these idiots keep driving the stock down with there made up fantasies of failure.
Growth seems to be the only thing that matters to Wall Street investors/traders. Get rich quick, even if a company has no legs. If they see a trend, they just jump on it until it burns itself out then they’re gone. Most of those companies will never earn close to the revenue their multiple indicates. Amazon will never earn 962X its current revenue nor will Google earn 35X its current revenue. That’s just crazy but that’s what investors seem to believe. It goes against all laws of accounting to me but I guess I’m too old-fashioned to understand why Wall Street should be used like a gambling casino.
MDN, you have it wrong! If investors would get excited about the stock again, they would move their money into it and create demand. The traders would notice that trend and start trading based on the rise in price. The stock would take off with the traders pumping it more.
I think most of the business analyst are homo phobic. downgrading the stock because Cook is gay,
No. WallNut Street Investors simple have NO-CLUE about Apple. The Apple Bear Bullshit has been going on for YEARS! And what does Apple do in response? Keep on growing to record profits every year.
IOW: STUPID investors. Sorry! But this is now a historical fact and I’m going to ENJOY reading the book.
Apple Death Knell Counter
Manipulate and denigrate AAPL all you like! The spring only coils more tightly, waiting to unwind. And it will! You can’t hide from reality forever kiddies.
Indeed I had forgotten about the death Knell counter of the 80s and 90s. Puts into perspective the present circumstances but shows just how long the market, the analysts and their cronies have had it in for Apple for most of its existence. And the core for this is that the company has always refused to play its game. For a long period when Apple grew almost beyond belief these critics bit their tongue and simply took advantage and got rich but the inherent underlying distrust and dislike has never truly gone away, just waiting to find any excuse to re-emerge and strike at its prey. The problem for Apple is that no matter what it does it can’t help at its present size but look less dynamic than those amazing years of growth. And that my friends is enough for the critics. Very self destructive to the American economy but since when has that been a concern for the self serving.
Yes, Apple refuses to play the BizTard Biznizz Bozo Gamez. Bravo Apple!
Then again, as has been pointed out many times here at MDN during 2015, Apple has shown many signs of losing ‘FOCUS’, as Steve Jobs warned.
In general, I see selfish, self-destructive parasites having little tizzy fits about not being able to make massive percentage profits off their investments like the ‘good old days’ when they could get away with MASSIVELY inflated real estate prices, before the scouring of that market in 2007 by the likes of Goldman Sachs and the ‘too big to fail’ gluttonous mortgage banks.
The big fat opportunities for big fat investment profits are new few and far between. The spoiled brats of the investment community take it out on the biggest scapegoat they can find. Apple has to be at fault because they’re not playing the parasite game like all the BizTards in the yard.
And so on. It all fits into ‘Desperation Mind Set Mode’ IMHO. No more ‘good old days’ because these same self-destructive morons destroyed any chance of further ‘good old days’.
Or something like that. As I say, someone more insightful that I will write a great book about this idiotic era of economics and the Neo-Conservative raping of America’s future (just to throw in some politics and make certain people extra angry at me). 😀
Appreciate the coiled spring analogy, unless the spring gets to the point where it breaks and then creates a big mess. I was thinking about the buoy analogy on another post and thought, if the buoy gets dragged down deep enough the pressure may just crush it and cause it to sink faster. 🙁
If the coiled spring breaks, or even loses its ability to unwind again… (I recently repaired a music box that had a spring left wound too tight for too long)… that’s when Apple should consider buying itself back again and getting the hell out of loony, FUD infested WallNut Street.
And yup, your buoy analogy is excellent. When I was studying marine biology, we used to take styrofoam cups down with us on dives and bring back up crushed cups about half the size of the original.
Attempting a real world comment: Bash anyone long enough and they learn to HATE you and begin to enact retribution behavior. We’ve seen this behavior happen with the media industry where customers are so incredibly sick of being ripped off and being treated as Default Criminals (DRM, encrypted video data, the TPP and TTIP trade treaties, ad nauseam… that the media industry has literally incentivized media robbery. If the customer is going to be treated as a default criminal, then of course they’ll respond by acting as criminals. Stupid BizTard repercussions.
How Apple would enact retribution, if at all, I have no idea. But they certainly have deep reasons to at least MISTRUST WallNut Street at this point in time. There is NO logic at this time regarding the price of AAPL. Zero.
…Sorry to go off on a rant. It’s a favorite subject and my mania kicks in. 😉
No prob. Good to vent now and then. 🙂