“At the core of Apple Inc.’s troubles right now is slowing growth in iPhones,” Steven Russolillo writes for The Wall Street Journal. “The situation isn’t as dire as some investors seem to think.”
“Without a hot new product to take the iPhone’s place as a growth engine, investors worry that Apple’s go-go days are over,” Russolillo writes. “This has played into the stock’s 20% loss over the past six months.”
“And it seems to cement Apple’s broader, yearslong shift from a fleet-of-foot growth stock to a stodgier value play,” Russolillo writes. “Such a transition typically doesn’t bode well. Look at what happened to Microsoft and Cisco Systems at the turn of the century.”
“But it is important to distinguish Apple’s value appeal now,” Russolillo writes. “No matter the knee-jerk reaction following fiscal first-quarter results on Tuesday, a longer-term view suggests Apple is nowhere close to following in its fellow tech bellwethers’ footsteps.”
Read more in the full article – recommended – here.
MacDailyNews Take: Apple’s ridiculously low P/E ratio proves it’s nothing like what occurred with Microsoft and Cisco.
SEE ALSO:
Apple Q116 earnings preview – January 25, 2016
What to look for in Apple’s earnings report tomorrow – January 25, 2016
Apple to release Q116 earnings, webcast live conference call on January 26th – January 22, 2016
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
Apple stock will suffer another deadly blow tomorrow after earnings no matter what the results are. It is mainly because TC is not willing to share any long term vision for the company. Secrecy is killing the company (as rumors get headlines and they are unflattering.) Apple needs new leadership.
I disagree! Secrecy is what saves the company! When the leaks come out that is what hurts the company then there are no surprises when the products are released like it used to be. No reason for Tim to share any long term vision as the photocopiers will be running full steam at MS, Google and Samsung. The rumor sites need to stop reporting on these leaks and rumors!
Blah Blah Blah
A golden earing in the nose of a pig
It would be so easy to again insult the people selling off AAPL. But tomorrow’s lovely results will speak for themselves, no doubt. Instead I’ll simply say how grand it is to have a company to champion these days. Long may Apple live on in the spirit of Woz and Jobs. 😀
Sandy,
I respect your read on this, but I must also disagree. Apple spends millions eat year fighting off rip-off artists from the Far East like Same-sung. Look how a roadmap of the future has done for Microsoft and Intel. Companies that sit around blabbing about their next great thing never seem to deliver, or they are copied by the Chinese or Koreans before they finish their sentence. Cook is fine, Apple is fine, Wall Street is the culprit here; never happy, always targeting the guys at the top.
Roadmap….we don’t need no stinking roadmap. Apple does need guiding principles so they can stay the course. But technology is changing get so fast, a road map would be out of date before the printer finished printing it. Also in many cases the customers cannot articulate what they want next, because they don’t know.
A roadmap that is shared allows others to get to the destination first by taking shortcuts, As a consumer, I do not want that.
“Apple posts record earnings, breaking all previous quarterly results . . . Stock price drops as analysts complain that (fill in the blank) did not meet their expectations” . . . . either I’m psychic, or we’ve all been here before.
Stock Market 101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “reflect” to state of the economy, let alone the state of any company represented.
For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.
If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.
Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way.
Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is simply the ability to predict what other traders might do before they do it.
I’ll get off my soap-box, now.
This! Well said.