Great buying opportunity on Apple stock right now as idiots are dumping stock against very optimistic numbers.
Large investors and the trading firms don't care whether or not a company is profitable, they care if THEY can make a profit. A brokerage makes money both selling and buying! I wouldn't be concerned about short-term stock gyrations if you intend on holding AAPL for the long run.
So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?
Wall Street guidance was less than what Apple produced. The drop I imagine is to take a loss now, rather than to take a bath later in Q1 2014 when Apple continues to crush the competition.
it's down because of the lower future gross margin guidance. present earning is far less important for a stock price when compared to projected future earnings.
How is Apple going to grow earnings going forward? Volume growth through large market-share gains in China after the ChinaMobile deal, for starters. The DoCoMo deal in Japan should also be accretive. Also, EPS should start climbing from here anyway as the buyback program continues in earnest, and that will help to provide a pretty firm floor to the stock. Combine those two factors and EPS will have a lot of support going forward.
You can have good margins on cheaper products. Go to the grocery store and look at the price of razor blades, lot and lots of margin in each package sold there.
The idea behind a cheaper product is to secure a larger share of the market.
Ok so show me all the companies producing cheap smartphones and tablets with high margins. I'd like to know who they are.
You can have good margins on cheaper products. Go to the grocery store and look at the price of razor blades, lot and lots of margin in each package sold there.
The idea behind a cheaper product is to secure a larger share of the market.
Problem is no one has high margins in the cheap cell phone market. That's why Sammy and Apple are the only ones making money.
it's down because of the lower future gross margin guidance. present earning is far less important for a stock price when compared to projected future earnings.
This is exactly right. Thankfully someone else here understands rather than just complaining about Tim Cook or how investors are wrong about everything.
This is exactly right. Thankfully someone else here understands rather than just complaining about Tim Cook or how investors are wrong about everything.
Future guidance was given to be less than expected and price dropped. That's very understandable. Some are concerned with future investment risk, while others see Apple beating sales estimates. Bulls vs. bears.
Actually, the after hours price is actually positive now ... I think the knee-jerk sell-off isn't going to net much gain for the "sell on the news" crowd this time. They may even have to buy back in for more than they what they sold.
These are solid numbers that are better than the figures that were already factored into the stocks price. The current product line-up is excellent (great iPads to propel Apple thru the Xmas quarter), and guidance is just fine. On top of that, we all know there are some completely new products to come next year.
This is exactly right. Thankfully someone else here understands rather than just complaining about Tim Cook or how investors are wrong about everything.
I wonder how much a ChinaMobile deal next month would cushion against the bad effects of margin compression. I imagine it would more than make up for it (by a long shot), but obviously, margin deterioration needs to be addressed sooner or later.
It appears that such a deal is more important than ever for earnings growth. I'm sitting on pins and needles waiting for an announcement!
So Oppenhemer explains margins include $900M software deferral. Now the stock is up after hours as analysts adjust GM for that. LOL
Oh wow, very interesting. Ugh, this is why Tim Cook needs to brush up on his PR skills. I feel like he leaves excuses in his bag, even when they're 100% legitimate and could help to prevent AAPL from getting punished in the market. Then again, his tight-lipped demeanor probably helps with the implementation of the buyback at lower prices lol.
Apple is making its new iPads with very thin margins. iPad 1 through iPad 4 had wide margins. iPad mini came out with thin margins and the stock started tanking. Now iPad Air is coming out with tiny margins again. Apple, please make a huge iPhone with humongous margins so that Wall Street valuates AAPL based on the margins and we can get AAPL into the $700 range again. And we don't need a cook to be running the show - I know he likes apples and all, but let him run some other kitchen. Fruit cake!
Oh wow, very interesting. Ugh, this is why Tim Cook needs to brush up on his PR skills. I feel like he leaves excuses in his bag, even when they're 100% legitimate and could help to prevent AAPL from getting punished in the market. Then again, his tight-lipped demeanor probably helps with the implementation of the buyback at lower prices lol.
I'll be happy if the stock is flat tomorrow. But clearly a knee jerk reaction as the stock went from $14 down to basically flat.
Still waiting for names. Last time I checked HTC and Nokia are struggling to make profits and Motorola is a money pit for Google (though Wall Street doesn't seem to care). And LG just reported a not so great quarter in part to lackluster smartphone business. Perhaps Samsung has high margins on cheaper phones but I'm not aware of anyone else who does.
Comments
Your title is wrong. It's not Apple reports earnings of $7.5 Billion, but reports Net Profits of $7.5 Billion.
Earnings = Profits = Net Income = Net Profits.
Great buying opportunity on Apple stock right now as idiots are dumping stock against very optimistic numbers.
Large investors and the trading firms don't care whether or not a company is profitable, they care if THEY can make a profit. A brokerage makes money both selling and buying! I wouldn't be concerned about short-term stock gyrations if you intend on holding AAPL for the long run.
Your title is wrong. It's not Apple reports earnings of $7.5 Billion, but reports Net Profits of $7.5 Billion.
? Earnings is perfectly acceptable to use here. Apple reported $7.5 billion in net income, i.e. earnings. The article is fine.
So Apple beats estimates and yet they're down over 2% after hours supposedly because of lower margins. Yet I keep reading articles about how Apple needs cheaper iPhones and iPads. How exactly would that increase margins?
THANK YOU!!
Wall Street guidance was less than what Apple produced. The drop I imagine is to take a loss now, rather than to take a bath later in Q1 2014 when Apple continues to crush the competition.
it's down because of the lower future gross margin guidance. present earning is far less important for a stock price when compared to projected future earnings.
How is Apple going to grow earnings going forward? Volume growth through large market-share gains in China after the ChinaMobile deal, for starters. The DoCoMo deal in Japan should also be accretive. Also, EPS should start climbing from here anyway as the buyback program continues in earnest, and that will help to provide a pretty firm floor to the stock. Combine those two factors and EPS will have a lot of support going forward.
Ok so show me all the companies producing cheap smartphones and tablets with high margins. I'd like to know who they are.
Problem is no one has high margins in the cheap cell phone market. That's why Sammy and Apple are the only ones making money.
it's down because of the lower future gross margin guidance. present earning is far less important for a stock price when compared to projected future earnings.
This is exactly right. Thankfully someone else here understands rather than just complaining about Tim Cook or how investors are wrong about everything.
AAPL is now up $6 after market.
AAPL is now up $6 after market.
Future guidance was given to be less than expected and price dropped. That's very understandable. Some are concerned with future investment risk, while others see Apple beating sales estimates. Bulls vs. bears.
These are solid numbers that are better than the figures that were already factored into the stocks price. The current product line-up is excellent (great iPads to propel Apple thru the Xmas quarter), and guidance is just fine. On top of that, we all know there are some completely new products to come next year.
This is exactly right. Thankfully someone else here understands rather than just complaining about Tim Cook or how investors are wrong about everything.
I wonder how much a ChinaMobile deal next month would cushion against the bad effects of margin compression. I imagine it would more than make up for it (by a long shot), but obviously, margin deterioration needs to be addressed sooner or later.
It appears that such a deal is more important than ever for earnings growth. I'm sitting on pins and needles waiting for an announcement!
So Oppenhemer explains margins include $900M software deferral. Now the stock is up after hours as analysts adjust GM for that. LOL
Oh wow, very interesting. Ugh, this is why Tim Cook needs to brush up on his PR skills. I feel like he leaves excuses in his bag, even when they're 100% legitimate and could help to prevent AAPL from getting punished in the market. Then again, his tight-lipped demeanor probably helps with the implementation of the buyback at lower prices lol.
Ok so show me all the companies producing cheap smartphones and tablets with high margins. I'd like to know who they are.
"Cheaper".
My worry is that this hit on the stock will cause Icahn to buy more shares, thus cause more problems for the company.