Apple finally found a Wall Street narrative

“After months of iPhone sales estimates being slashed by analysts, expectations have been reset,” Neil Cybart writes for Above Avalon. “The iPhone mega upgrade cycle of 2018 that so many were calling for is not going to happen.”

“One assumes such a reset would have been accompanied by a significant decline in Apple’s stock price,” Cybart writes. “Instead, Apple shares have outperformed the market and continue to trade near all-time highs.”

“The resiliency in Apple’s stock price reflects the company finally finding a narrative on Wall Street, and it’s not centered on the iPhone,” Cybart writes. “Apple has become a capital allocation story.”

“Narratives matter on Wall Street [see Amazon and Netflix, for two examples]. A compelling and easy to understand narrative allows companies to navigate rough waters such as a disappointing earnings report,” Cybart writes. “Apple has long struggled with Wall Street narratives… [But, finally], evidence is building that Wall Street has begun looking at Apple differently… Apple has found a narrative revolving around capital allocation. Instead of iPhone sales or Apple Services revenue gaining importance, Apple’s balance sheet strategy is driving the company’s new Wall Street narrative.”

Read more in the full article here.

MacDailyNews Take: A new, more correct narrative is certainly better than the fatally-flawed Church of Market Share narrative of old.

Another $125 billion in buybacks would be seismic.MacDailyNews, November 18, 2016

Apple dividend hike looms – April 9, 2018
Apple’s repatriation and share buyback could Trump all – November 18, 2016


  1. I fear this is wishful thinking. The Wallies are engaged in a one time greed fest leading up the the May 1 reveal of how Apple distributes its repatriated cash mountain.

    I predict that once midnight strikes on May 15 (the day the dividends announced on May 1 are paid) the Analystbots will resume their regular programing to shun Apple and love all things Amazonian/Googlish.

      1. Amazonian, Googlish ……. but You left out Microsoftian…
        Stock has been on fire too.

        But in all fairness… with exception of Amazon with PE of 250………Apple and the rest of the bunch have preformed kind if equaly ….

  2. Apple will keep making great products that earn real money. AAPL will follow. Wall Street’s irrational bullshit will eventually and consistently reward this. Since ADHD appears to rule a great deal of investment advice and decision making, maybe AAPL needs to come up with computer generated electronic Adderall.

    1. Is less about product innovation and more about money management/allocation. As a stockholder, this isn’t bad, but as one with a passion for design, I feel a bit of loss. This is the marker up Tim Cook’s Apple, imo.

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