Wall Street still lacking the skills to drive Apple

“Everyone knew Apple’s latest quarter was not going to be brilliant, even Apple. Apple guidance suggested income would be $50-53 billion, with gross profit of 39-39.5%,” Graham K. Rogers writes for eXtensions.

“You would think that Apple would understand its own workings, but that fails to take into account how Wall Street thinks it is driving the economy. What the analysts thought was that rather than $50-53 billion, Apple should actually come up with $52 billion, so when the actual figures – within Apple’s own estimates – did not meet what Wall Street thought, Apple fails again,” Rogers writes. “Apple just will not behave as Wall Street expects.”

“Already there have been calls for Tim Cook’s replacement, who always carries the cross that he is not Steve Jobs,” Rogers writes. “Analaysts forget of course, that when Jobs was CEO, they were pretty critical of him too.”

Read more in the full article here.

MacDailyNews Take: Wall Street lacks a lot of skills. Understanding what to expect of Wall Street’s typical Apple reactions can be very, very profitable.

8 Comments

    1. Apple doesn’t have any real problems; it has various challenges like every business has. Let’s not forget that Jobs used to complain that Wall Street manipulated Apple stock. Historically, it’s met those challenges very successfully. That holds true for recent history too, in the post-Jobs era. Apple is still one of the most successful companies on the planet.

      1. Challenges, just another word for problems, disasters, and fubar. “Challenges” sounds so nice, erudite, and benign. It’s a word to assuage guilt and culpability. It’s a word that people use when they can’t or won’t admit responsibility.

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