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Apple's 'disappointing' quarter still outperforms the most profitable US companies - Page 2

post #41 of 47
Quote:
Originally Posted by Frood View Post

 

Except Apple shares did not drop based on "bad news."  It dropped when Apple reported actual numbers, which indicated the stock price need to be realigned more with reality...Apple is fine.  Their products are great.  Their sales are great.  Their margins are high but dwindling.  Based on that they are solidly in first place market cap again.  There might be a shred of justification to drive them back up to a $507b company (but that is above even 'high' guidance).  They don't currently justify a $700b market cap, but who knows- another awesome new surprise might change that.

Apple's reported actual numbers were misinterpreted. It was not widely known that the previous year's quarter had an extra week of earnings. Adjusting that out led to a revenue increase of 27% yoy. And their margins are not "dwindling"; they are lower due to the extraordinary number of new products Apple brought on line for fy 2013 Q1. The margins are set to improve quarter by quarter.

 

The reality is that, as another poster said, Apple's P/E is being compressed by its huge size, not by some supposed failure on its part. And that kind of P/E compression is close to unique. Conventional thinking like yours fails to appreciate that salient fact and thus fails to realize that Apple more than justifies a much, much larger market cap, say with a P/E on the order of Google's (presently around 24). With EPS of $44, that would equate to a price of $1,056/share. Note that this doesn't even take into account Apple's war chest of cash.

post #42 of 47
Quote:
Originally Posted by Frood View Post

It dropped when Apple reported actual numbers, which indicated the stock price need to be realigned more with reality.

Well, that's your first bad assumption...that there is actually a tangible direct relationship between stock price movement and realignment with "reality"...whatever reality even means.  Stock prices go up and down, up and down, up and down...and if every dramatic movement of price were somehow related to realignment with reality, then damn, reality is more finicky than Morris The Cat on crack.

post #43 of 47
Quote:

Originally Posted by Frood View Post

 

Analysts didn't cause Apple to drop with bad news- reality caused Apple's share price to drop.  Analysts and media frenzy, combined with user love, caused Apple stocks to soar way above what their actual numbers justified.  When it became clear Apple couldn't meet those expectations the stock price started dropping fast.  When Apple reported its actual numbers (actual sales numbers were not only below expectations, but they were below expectations even including phones Apple was giving away for free or cheap- which constituted around half of their total sales!)- that is what drove the stock down.

 

So, when it dropped after the last CC it was based on realignment with reality, but when it soared, it was media frenzy & user love?!  Haha.  Good one.

 

The bottom line is that anyone can make up crap about why it went up or down.  I do that sometimes as well, but I know I'm mostly just entertaining myself.

 

Here's what I dare you to do as I do with anyone that seems to have such a wonderful justification as to AAPL's low share price...compare it to other comparable stocks in the stock market.  Go ahead.  And let's keep it simple, just list the other stocks with as low a PE (minus cash/SI), with as high historical and forward revenue growth, and with similar global risk (i.e. branding, customer satisfaction, industry risks, level of competition, etc.).  Find 5 of those stocks.  If you do, I'd be interested in buying shares in those companies as well.

post #44 of 47
Quote:
Originally Posted by AdamC View Post


Your last bit about shorting is too simple and very misleading.

What I understand about shorting a stock is selling it and buying it back at a lower price and make a profit from the difference.

You are correct about shorting. But the "market" does not know whether a seller is selling share they own or shares that are borrowed. All the market "sees" is a person offering shares for sale.

post #45 of 47

Apple doesn't really have a problem, not one that "analysts" or the competition have discovered, anyway. All the alleged problems with Apple are nitpicks compared with how Microsoft is floundering. The Surface Pro is a weird  design. Looked at as a tablet that can function as a PC, there is a certain logic to it, except to function as a PC, you need a keyboard and to differentiate from ultrabooks, it has a floppy keyboard (an extra-cost option) and a kickstand, so it's a laptop you can't use on your lap. Seen as a tablet, it's too expensive. I can't see why you'd buy it over an ultrabook. Most of the comparison reviews so far are vs. the MacBook Air, and contrive to create a victory out of the MBA missing a few details (conveniently miss the point that it has a proper keyboard, and that you can buy other ultrabooks if you want more for your money).

 

More at my blog.

Philip Machanick creator of Opinionations and Green Grahamstown
Department of Computer Science, Rhodes University, South Africa

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Philip Machanick creator of Opinionations and Green Grahamstown
Department of Computer Science, Rhodes University, South Africa

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post #46 of 47
LinkedIn is spinning circles around Apple. They may not be making any money, but they're growing like wildfire. Poor Apple. They have no growth left. Apple is DOOOOOOMED!
post #47 of 47

Quote:

Originally Posted by AZREOSpecialist View Post

So the argument for Apple now is "we don't suck as bad as the other guy"? Is that what you are saying, AppleInsider?

 

Yr right. Only 13Billion last quarter! Apple should close shop and give the money back to its shareholders!
 

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