Has Apple peaked?

“When Apple reports its earnings on Tuesday, it’s virtually certain that the tech giant will report record quarterly profits,” Susie Poppick writes for Money. “Apple almost always does.”

“The question is, are overall iPhone sales growing or shrinking? And if they’re on the rise, will the pace of that growth be enough to cheer Wall Street and stem the recent drop in Apple’s stock, which has tumbled nearly 5% this year and 25% from its all-time highs?” Poppick writes. “Despite the recent slump, Apple AAPL 0.61% is still trading at around $100 per share, and investors have made the consumer electronics giant—with a total market value of $562 billion—the most valuable company on earth.”

“Moreover, the stock’s price is less than 11 times the earnings analysts expect for next year. That compares with a P/E ratio of 16 for the S&P 500, and 19 for rival Microsoft,” Poppick writes. “In other words, the ‘E’ in Apple’s P/E is so high that its total value must be similarly stratospheric, but investors are skeptical that Apple’s profits can grow quickly from here.”

Read more in the full article here.

MacDailyNews Take: Has Apple peaked? No.

What the analysts expect from Apple’s Q116 earnings report today – January 26, 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 “Dan K.” for the heads up.]


    1. Apple isn’t going to exaggerate on March guidance so surely the stock will fall or not move up at all. Companies need to lie to investors about guidance to get them excited and their greed overflowing.

      I expect more of the same of last year’s disappointment to whatever numbers Apple produces. Only the Wall Street darling stocks will soar and Apple shareholders will again be the biggest tech stock losers.

    1. It shouldn’t be, but Wall Street is looking for the highest growth percentage which is something else entirely. Apple could grow 2% and make extra billions of dollars. Amazon may have to grow 20% to make a few hundred million more dollars, but Wall Street prefers large percentages of growth than a greater amount of money. That doesn’t make any sense to me at all, so I’m at a loss.

      1. M…s…48, Actually its simple. Wall street anal…ysts and those in real power just cannot understand Apple. They are still looking at buggy whip companies as the next big thing. LOL

        companies that sell things (walmart) they understand.
        companies that hype selling things (Microsoft) they understand.
        companies that just do hype, they understand.

        These are the same type people who supported the crazy market…. right up to “the crash”!! To these people, money is everything, money now, if the company crashes later due to stupid management, who cares??? They made their money now…

        Also these people like charts and graphs of intangible things. Like how its wonderful for a small company to double sales and lose money, but its terrible for Apple to “only do the same business as last year” and add tens of BILLIONS of PROFIT to its balance sheet…. that is bad!!!

        Its crazy, but it is straight forward. sadly.

  1. I think only way the stock doesn’t get hammered, not matter how great the numbers or the projections, is for them to up at the dividends. If they were to return dividends comparable to say PEP, WMT, KO or MCD pay then you might see the stock price move up.

    That’s my 2-cents.

  2. I’ve been holding AAPL since 1999. For about the last ten years, four times a year, just about when they’re announcing earnings and such, the same question gets asked: Has Apple peaked? No. Next question.

    Did you hear that they’re remaking “Ghostbusters” with an all-woman cast? Wall Street and Hollywood are both out of new ideas. Apple is not.

  3. What a stupid question. Of course Apple hasn’t peaked. It’s got momentum to keep strong growth going for a few years, no matter what.

    … But it is important to keep an eye on the current management team, which seems to be losing focus or what originally made Apple great: unwavering focus on user experience. The more Apple panders to Wall Street, tax lawyers, overpaid executives, the further away from the customer they become. So Apple growth will inevitably slow as Apple becomes just another corporation, putting short-term profits before anything else.

    The indicators of Apple’s future prosperity come in product releases, not in earnings calls. That’s why the long-term thinkers out there are so disappointed in Cook’s leadership. It’s not that he doesn’t bring in the money — that would be easy for anyone who inherited the iOS App Store — the problem is that Cook’s botched launches have been mostly slow, conservative, incremental updates that do not keep Apple ahead of the competition. And if rumors of an Apple car are true, then Apple will have spent billions of dollars in a high-risk money pit. Cars are all low-margin, high-risk products — and none more risky for the manufacturer than autonymous vehicles. Apple can’t add value there. Apple could add value by updating all its stale Mac, Airport, and Display products though.

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