Gene Munster: There’s a disconnect between the fundamentals of Apple and the headlines

“As Apple slowly recovers from the melee over its China revenue miss, one analyst is calling for more optimism about the tech giant given its strong fundamentals,” Aarthi Swaminathan writes for Yahoo Finance. “Gene Munster, longtime tech analyst and Loup Ventures managing partner, is still bullish on Apple stock for ‘the simple reason is that the fundamentals [and] the competitive landscape really hasn’t changed here.'”

“Munster’s belief is that there’s a ‘disconnect between the fundamentals of Apple and the headlines,’ because the company is on track to report its best earnings quarter in the history of the company — despite the miss,” Swaminathan writes.

MacDailyNews Note: Apple’s best revenue quarter ever was holiday 2017 (fiscal Q118) with $88.29 billion. In the now infamous “Letter from Tim Cook to Apple investors,” Cook wrote that Apple expects “revenue of approximately $84 billion” in Q119 (holiday 2018) and “to report a new all-time record for Apple’s earnings per share.”

“Wednesday may have been arguably one of the ‘darkest days in Apple’s history,’ but Munster believes that fears over a China slowdown are likely to subside soon under Cook’s leadership,” Swaminathan writes. “‘That cash [from the projected earnings] is something that Tim Cook has control of and he can use that to incentivize the stock,’ Munster said. ‘People don’t really wanna hear it today, but the business is actually doing really well.'”

Read more in the full article here.

MacDailyNews Take: “There’s a disconnect between the fundamentals of Apple and the headlines.” What else is new?

As we wrote on Wednesday, “The good news: This too shall pass.”

SEE ALSO:
Is the cult of Apple over? Tim Cook faces a struggle to revive the spark – January 4, 2019
Tim Cook’s defining moment as Apple CEO – January 4, 2019
2019 is make or break for Apple as CEO Tim Cook tries to save his legacy – January 4, 2019
$452 billion goes poof: Apple’s market value decline since peak easily exceeds the value of nearly any U.S. company – January 4, 2019
Wall Street analysts slash Apple target prices – January 3, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019
Two things Tim Cook just did that make Apple look guilty today – January 3, 2019
CEO Cook issues memo to employees after Apple slashes revenue outlook for the first time in almost two decades – January 3, 2019
Apple’s earnings warning means CEO Tim Cook now has a major credibility problem – January 3, 2019
Loup Ventures: We continue to expect AAPL to outperform the rest of FAANG in 2019 – January 3, 2019
Open thread: Does Apple need new leadership? – January 2, 2019
CEO Tim Cook on why Apple lowered first-quarter revenue forecasts – January 2, 2019
Apple CEO Tim Cook issues public letter to investors, lowers guidance – January 2, 2019

16 Comments

  1. The disconnect is Tim Cook. I warned everyone here on MDN back in 2012 about lazy, greedy, incompetent Cook, and I was ran out of here on a rail and excoriated. Now just look at Apple… a smoldering hot mess of a company.

    1. You seem to know a lot.

      It is a messed up company that made 933,000,000$ a day for 90 days instead of 1 billion a day…

      I want to be messed up like this company.

      Quit this forum bro, once and for all. It will be a relief for you.

  2. Still wildly profitable, and apart from the Chinese market, firing on all cylinders.

    I guess we all see what we want to see. I see a strong business adapting to change.

    1. @January

      How long can you sustain a business by ripping off and alienating your core customers and pricing millions of consumers out of your products. I’d say about 8-years. Tim Cook’s time is up. He is fully exposed and we all know what he is… a greedy, c*cksucking sychophant.

      1. Hey zero, could you turn down the foul language a little? You really need to get so worked up over a slab of glass, a chip and a battery? If you do, you have more problems than Apple or Cook.

      2. Apple has more customers than ever before and more active devices than ever before. Apple just made the second best quarter ever in its over 40 years history. Tim Cook has made me very rich and I wish that he f
        ”Fails” like this long in to the future. So ef off.

      3. I’ll answer: by prioritizing the release of cutting edge emojis…that’s how to sustain the business.
        See, emojis represent the depth of our culture and AAPL is bending down to meet the need. In addition, selling iCloud storage, Music and other Services subscriptions are the way of the future. Creating something new is so 2000, or so Jobsian.
        Tim has a little reticence to release new things in general and a very hard time releasing new things when stated. It appears almost as much of a challenge to release existing product updates in a timely manner. Again, that’s no big deal because the services income will be sufficient to make the delays and invention vacuum inconsequential.
        When a company is so successful, so popular and with such a legacy, I think it’s ok to sit on the Hill of Laurels and coast with “annuity-like” income. Don’t you? Why all the criticism…AAPL has already made their mark. Embrace the new Apple as it becomes like the other “A” company.

        1. Dream on. Name one major company that relies on mobile ARM devices for its computer needs. Any one will do. Lemme give you a little hint: Apple doesn’t even run on their own hardware.

            1. Apple canceled its servers. It killed OS X Server. It hasn’t updated the fundamentally flawed Trashcan in 5 years. Apple offers no computer affordable for education and none with powerful enough graphics for cutting edge AR, gaming development, or competive scientific computing. Apple’s fashion-first laptops suck for competent typists. Its newest Mini, like the Trashcan, requires tons of 3rd party expansion boxes to be equivalent to a similarly priced Windows PC.

              To top it all off, Apple’s computers are almost totally unrepairable and not user upgradeable so their long term value is limited IF YOU CARE ABOUT PERFORMANCE.

              Now you come in and claim that a mobile optimized ARM chip with a reduced instruction set — RISC is less process efficient at getting stuff done, CISC is more power hungry— is going to reverse Apples decade-long retreat from powerful computing????

              You definitely have to explain this. Power computing users don’t give a sh!t about battery life. For those of us that buy the computers and software that is cost effective at getting stuff done, it’s by far cheaper and more effective to stick with Intel and buy from companies that care less about fashion. Too bad Apple doesn’t have the resources to build great Macs or great Mac software anymore. You apologists can claim all you want that nobody buys powerful computers anymore but actually all major companies do. Just not from Apple. Apple products are primarily suited to coffee shop blogging. Just don’t get a crumb on your skinny clickety clack keyboard.

              Oh and about iOS: no freaking way. NEVER will there be high power software for that phone OS. Look at what leading iOS apps Apple sells: cheesy games and social media garbage. To do any engineering, science, video production, etc, you don’t blindfold yourself and tie both hands behind your back. IOS is a joke, especially when the retard marketing fools in Cupertino slap a Pro label on it.

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