Before the results were announced, Apple's share price was up over 50% since this time last year. Share prices are based on expectations. Apple announced that revenue was up only 27% since this time last year. And the share price went up another 1.5-2%. Where's the bias now?
Perspective. From Calvin Klein.
That was deep, man.
Only 27%? At numbers above $10B? You're right, nbd. And you're trying to give me a lesson in perpective, huh? Um, thank you?
The fact that overall numbers are roughly in line with expectations doesn't explain the tepid response to earnings IMO.
What Amazed Me MOST is that VILLAIN IMPOSED A TOTAL BLACKOUT ON NEWS out of ALL THE TECH-related MAGAZINES OF THE WORLD about A High-end Prostitute killing Google EXEC who Had Been in Charge of Production & Rollout of Google Glasses with A Heroin Overdose on His Luxury Yacht off Shore of Santa Cruz Harbour
You also forgot about the Google engineer that got killed by the avalanche on Mt Everest
What's not to understand. If you look at iPad sales for the past 4 quarters and compare Year-over-Year growth of previous years' quarters, unit sales have been declining.
Declining growth is an oxymoron. You worded correctly now.
Only 27%? At numbers above $10B? You're right, nbd. And you're trying to give me a lesson in perpective, huh? Um, thank you?
The fact that overall numbers are roughly in line with expectations doesn't explain the tepid response to earnings IMO.
Then I think you definitely need to take some lessons in perspective. "In line with expectations" is a perfect explanation for the dial not moving much.
And just for some additional perspective, Apple's share price increasing by 1.8% in-hours, and around 1.3% out-of-hours represents approximately an additional $20-25bn on their market cap. i.e. exceeding profit for this quarter, of which, as you say, the majority was expected anyway, and already priced into the stock.
I have the first generation of retina iPads and although the new ones are certainly improved there is little reason for me to upgrade. I think this is what is hurting the iPad sales.
My concern is real; if the iPhone's momentum is ever gone, we'll see Apple go down like a meteor - just like Nokia was once certain of its gigantic phone cash cow.
So what about new Mac Pros?
Your problem is that you aren't looking at the big picture. Google reported a total profit of $3.5 billion this last quarter. If you take away EVERY bit of profit from the iPhone, Apple STILL had a profit of $4.08 billion! So Apple as a company made MORE profit that Google, even EXCLUDING the iPhone. Think about that.
Nokia pretty much only sold phones (and crappy ones at best to me - I checked them out, but never bought one), so when they didn't come up with a good smartphone, well of course, they tanked.
Sales of the iPhone, as long as Apple continues to add something new, are not going to tank, and there is certainly no indication that Apple is going to stop innovating any time soon. There are still a few billion people in the world that don't even have smart phones yet, so the market is nowhere near saturation.
So I questioned yesterday why the stock was up only 1% after hours and it opens this morning actually down over 1%. How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day? I'm sorry but this is BS.
So I questioned yesterday why the stock was up only 1% after hours and it opens this morning actually down over 1%. How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day? I'm sorry but this is BS.
Right, and not just beating almost anybody's expectations, which they did, but beating expectations which were very high by any normal standards. And right now down by almost 2% from yesterday's closing price. Not to mention that they are trading at a P/E of 16, which doesn't even take into consideration the almost $200 billion that they have in the bank. What would that be ex-cash, about 11 and change? Let's compare that to Amazon, which is worth more than a third of Apple by market cap, but is not currently profitable and in their entire history has made less money than Apple makes in a single quarter. That would be understandable if they were a brand-new startup still trying to figure out how to monetize their business model, but the company is 21 years old!
So I questioned yesterday why the stock was up only 1% after hours and it opens this morning actually down over 1%. How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day? I'm sorry but this is BS.
Because.. Wall Street.
But yeah, complete non sensical horse shit. Once again Apple stock and its shareholders are punished after Apple smashes expectations. Their quarter exceed the predictions of pretty much EVERY analyst, and yet, here we are a day after with a drop in the stock. Not even a temporary boost. **** it, I give up.
Right, and not just beating almost anybody's expectations, which they did, but beating expectations which were very high by any normal standards. And right now down by almost 2% from yesterday's closing price. Not to mention that they are trading at a P/E of 16, which doesn't even take into consideration the almost $200 billion that they have in the bank. What would that be ex-cash, about 11 and change? Let's compare that to Amazon, which is worth more than a third of Apple by market cap, but is not currently profitable and in their entire history has made less money than Apple makes in a single quarter. That would be understandable if they were a brand-new startup still trying to figure out how to monetize their business model, but the company is 21 years old!
Hmm...last quarter after Apple reported the markets were down the next day and dragged Apple with them. Now we're seeing that again this quarter. Except today Apple is down more than Amazon, Google or Facebook all of which have had nice run ups recently. And Microsoft is actually up over 1.5% this morning. Something stinks and stinks bad.
How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day?
Yes... insane. It was up pre-market (last night) but fell once the market opened.
Silver lining = buying opportunity for those with cash.
But yeah, complete non sensical horse shit. Once again Apple stock and its shareholders are punished after Apple smashes expectations. Their quarter exceed the predictions of pretty much EVERY analyst, and yet, here we are a day after with a drop in the stock. Not even a temporary boost. **** it, I give up.
Of course people will say 'well the market over all is down today and taking Apple with it'. But I can damn well guarantee you if Amazon or Google (or anyone really) had the quarter Apple did NO WAY would they be down 2% right now. It's complete bullshit.
Yes... insane. It was up pre-market (last night) but fell once the market opened.
Silver lining = buying opportunity for those with cash.
Yes, especially if you're somebody like, um, Tim Cook or Luca Maestri, who have quite a few billion that they need to spend on Apple shares in the near future. In a way, it's actually kind of good for shareholders that Apple is down right now, unless they need to sell right now, because it means Apple can buy back more of its shares for the same cash, which makes the outstanding shares that much more valuable in the long run.
Of course people will say 'well the market over all is down today and taking Apple with it'. But I can damn well guarantee you if Amazon or Google (or anyone really) had the quarter Apple did NO WAY would they be down 2% right now. It's complete bullshit.
The market is down overall today. . .
Even Sog wouldn't have any other explanation for this one.
This is why I find investing in a business which I understand to be a better and more reliable use of my money than investing in the stock market which no one seems to understand.
Of course people will say 'well the market over all is down today and taking Apple with it'. But I can damn well guarantee you if Amazon or Google (or anyone really) had the quarter Apple did NO WAY would they be down 2% right now. It's complete bullshit.
and why do you care about one day trading fluctuation? ofcourse i agree it does not make sense but until you need to sell today, sit down and relax and wait for long term. Fundamentals are so strong that it should recover quickly.
and why do you care about one day trading fluctuation? ofcourse i agree it does not make sense but until you need to sell today, sit down and relax and wait for long term. Fundamentals are so strong that it should recover quickly.
It just pisses me off that a company can have a record quarter and Wall Street basically says 'meh'. Also I struggle with things that don't make any sense. Any other company posting results like Apple did would not be down today.
It just pisses me off that a company can have a record quarter and Wall Street basically says 'meh'. Also I struggle with things that don't make any sense. Any other company posting results like Apple did would not be down today.
i agree, but AAPL is special kind with its valuation 760B, so we need to accept it or not to invest. So WS says "meh" today and tomorrow is just another day. Personally i think:
- there will be lot of analyst upgrades
- Carl Icahn will tweet he wants $200 share price
All this should help recover AAPL relatively quickly, because before earnings P/E was almost 18, now it is 16.
So with P*E 17 we should be at $137, with P/E 18 at $145.
i agree, but AAPL is special kind with its valuation 760B, so we need to accept it or not to invest. So WS says "meh" today and tomorrow is just another day. Personally i think:
- there will be lot of analyst upgrades
- Carl Icahn will tweet he wants $200 share price
All this should help recover AAPL relatively quickly, because before earnings P/E was almost 18, now it is 16.
So with P*E 17 we should be at $137, with P/E 18 at $145.
CNBC's explanation is the thought by Wall Street is how can things get better. So basically if Apple reports an OK or bad quarter it's DOOM but if Apple reports a record quarter that's DOOM too because it can't get any better. It's nuts.
Comments
That was deep, man.
Only 27%? At numbers above $10B? You're right, nbd. And you're trying to give me a lesson in perpective, huh? Um, thank you?
The fact that overall numbers are roughly in line with expectations doesn't explain the tepid response to earnings IMO.
You also forgot about the Google engineer that got killed by the avalanche on Mt Everest
Declining growth is an oxymoron. You worded correctly now.
Declining growth is an oxymoron. You worded correctly now.
Gotcha!
I do enjoy his posts.
That was deep, man.
Only 27%? At numbers above $10B? You're right, nbd. And you're trying to give me a lesson in perpective, huh? Um, thank you?
The fact that overall numbers are roughly in line with expectations doesn't explain the tepid response to earnings IMO.
Then I think you definitely need to take some lessons in perspective. "In line with expectations" is a perfect explanation for the dial not moving much.
And just for some additional perspective, Apple's share price increasing by 1.8% in-hours, and around 1.3% out-of-hours represents approximately an additional $20-25bn on their market cap. i.e. exceeding profit for this quarter, of which, as you say, the majority was expected anyway, and already priced into the stock.
My concern is real; if the iPhone's momentum is ever gone, we'll see Apple go down like a meteor - just like Nokia was once certain of its gigantic phone cash cow.
So what about new Mac Pros?
Your problem is that you aren't looking at the big picture. Google reported a total profit of $3.5 billion this last quarter. If you take away EVERY bit of profit from the iPhone, Apple STILL had a profit of $4.08 billion! So Apple as a company made MORE profit that Google, even EXCLUDING the iPhone. Think about that.
Nokia pretty much only sold phones (and crappy ones at best to me - I checked them out, but never bought one), so when they didn't come up with a good smartphone, well of course, they tanked.
Sales of the iPhone, as long as Apple continues to add something new, are not going to tank, and there is certainly no indication that Apple is going to stop innovating any time soon. There are still a few billion people in the world that don't even have smart phones yet, so the market is nowhere near saturation.
So I questioned yesterday why the stock was up only 1% after hours and it opens this morning actually down over 1%. How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day? I'm sorry but this is BS.
Right, and not just beating almost anybody's expectations, which they did, but beating expectations which were very high by any normal standards. And right now down by almost 2% from yesterday's closing price. Not to mention that they are trading at a P/E of 16, which doesn't even take into consideration the almost $200 billion that they have in the bank. What would that be ex-cash, about 11 and change? Let's compare that to Amazon, which is worth more than a third of Apple by market cap, but is not currently profitable and in their entire history has made less money than Apple makes in a single quarter. That would be understandable if they were a brand-new startup still trying to figure out how to monetize their business model, but the company is 21 years old!
Because.. Wall Street.
But yeah, complete non sensical horse shit. Once again Apple stock and its shareholders are punished after Apple smashes expectations. Their quarter exceed the predictions of pretty much EVERY analyst, and yet, here we are a day after with a drop in the stock. Not even a temporary boost. **** it, I give up.
Hmm...last quarter after Apple reported the markets were down the next day and dragged Apple with them. Now we're seeing that again this quarter. Except today Apple is down more than Amazon, Google or Facebook all of which have had nice run ups recently. And Microsoft is actually up over 1.5% this morning. Something stinks and stinks bad.
How the hell do you announce a quarter like Apple did, beating on both the top and bottom line, beating on gross margins and providing strong guidance and have the stock drop over 1% the next day?
Yes... insane. It was up pre-market (last night) but fell once the market opened.
Silver lining = buying opportunity for those with cash.
Of course people will say 'well the market over all is down today and taking Apple with it'. But I can damn well guarantee you if Amazon or Google (or anyone really) had the quarter Apple did NO WAY would they be down 2% right now. It's complete bullshit.
Yes... insane. It was up pre-market (last night) but fell once the market opened.
Silver lining = buying opportunity for those with cash.
Yes, especially if you're somebody like, um, Tim Cook or Luca Maestri, who have quite a few billion that they need to spend on Apple shares in the near future. In a way, it's actually kind of good for shareholders that Apple is down right now, unless they need to sell right now, because it means Apple can buy back more of its shares for the same cash, which makes the outstanding shares that much more valuable in the long run.
Even Sog wouldn't have any other explanation for this one.
This is why I find investing in a business which I understand to be a better and more reliable use of my money than investing in the stock market which no one seems to understand.
Of course people will say 'well the market over all is down today and taking Apple with it'. But I can damn well guarantee you if Amazon or Google (or anyone really) had the quarter Apple did NO WAY would they be down 2% right now. It's complete bullshit.
and why do you care about one day trading fluctuation? ofcourse i agree it does not make sense but until you need to sell today, sit down and relax and wait for long term. Fundamentals are so strong that it should recover quickly.
It just pisses me off that a company can have a record quarter and Wall Street basically says 'meh'. Also I struggle with things that don't make any sense. Any other company posting results like Apple did would not be down today.
It just pisses me off that a company can have a record quarter and Wall Street basically says 'meh'. Also I struggle with things that don't make any sense. Any other company posting results like Apple did would not be down today.
i agree, but AAPL is special kind with its valuation 760B, so we need to accept it or not to invest. So WS says "meh" today and tomorrow is just another day. Personally i think:
- there will be lot of analyst upgrades
- Carl Icahn will tweet he wants $200 share price
All this should help recover AAPL relatively quickly, because before earnings P/E was almost 18, now it is 16.
So with P*E 17 we should be at $137, with P/E 18 at $145.
CNBC's explanation is the thought by Wall Street is how can things get better. So basically if Apple reports an OK or bad quarter it's DOOM but if Apple reports a record quarter that's DOOM too because it can't get any better. It's nuts.