“One of the best (in my opinion) and largest companies in the world is on sale,” D.M. Martins Research writes for Seeking Alpha. “At least this is how I see Apple stock’s 7% dip over the past few days, as analysts turn cautious about the tech device maker’s iPhone sales ahead of the release of fiscal 2Q18 results.”
“I calculate that the implied effect of Taiwan Semiconductor’s guidance drop to Apple’s full-year net earnings would barely breach $7 billion,” Martins writes. “On the other hand, AAPL has lost a whopping $65 billion in market cap over the past few days – way too much for my taste, considering the worst-case financial impact to the company.”
“From my perspective, the bar for fiscal 2Q18 results has already been lowered enough, particularly in regards to iPhone sales and following Apple’s bursting of the ‘super-cycle bubble’ that I discussed a few months ago.,” Martins writes. “Therefore, I find it unlikely that next week’s earnings report will disappoint. I may very well accumulate shares on this most recent, silly dip.”
Read more in the full article here.
MacDailyNews Take: AAPL was undervalued before the recent BS-fest. It’s even more undervalued now.
Analysts are “worried about iPhone.” What are they worried about, that Apple’s iPhone will take 100% of the world’s smartphone profits?
Profit from the painfully gullible. — MacDailyNews, December 26, 2017
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