Meh. There will come a point where iPhone sales will no longer continue to grow every quarter. We're probably getting close right now.
At which point Apple will have to "settle" for only selling 250 million iPhones every year to upgraders and "sufffer" with the $150 billion or so in revenue they will generate. Apple is doomed.
We need to get our heads around the disconnect between Apple the company and AAPL the stock. There are lots of successful companies who make lots of money but whose stock is not favored by Wall Street because they are not growing at the rate investors think they should be. I think Apple is slowly becoming a value stock rather than a growth stock. In other words it’s becoming a bluechip like AT&T, whose stock price trades in a very narrow range but lots of people own it because it pays good dividends and is reliable, not much of a gamble. It’s utter nonsense to believe that Apple or AAPL is on the brink of collapse and only the stupid would even entertain such an idea. But never underestimate the stupidity of iHaters and Fandroids.
Apple's ex-cash p/e is still close to half of AT&T's p/e, so presumably Wall St thinks that even AT&T will grow twice as fast as Apple. (AT&T only has about 5bn in cash, so ex-cash isn't much different.) At this point, I'd actually be glad to see Apple valued like AT&T.
Given that WS consensus is forecasting a drop in sales and shipments anyway, where is the smoke that indicates a worrying decline, the consensus is more than three million units lower sales than last year and around two billion less in revenue.
Did you actually read what I wrote. I don't think so. Last year was off the chart, no one predicted, sales. It even surpassed Apple's own guidance and certainly what anyone else was predicting.
So, that this year would be lower than that is almost expected. Yet. you basically , just doddered the Wall street echo.
Wall Street is NEVER IMPRESSED, or they would have had a much higher PE ratio 2 years ago .
Basically, for Wall Street, the bottom has been dropping out almost for even year of the last 15 years.... If it wasn't the case, the PE ratio would actually be more than a grocery store...
Stock price went up, but much much less than other tech firms with similar growth (or a lot less growth...) over the last 15 years.
Yes I read what you said, and sorry but the June quarter last year Apple missed Wall Street estimates, the expected iPhone shipments where more than the 47 million Apple reported, the market expected around 50 million.
I'm getting tired that, from time to time, an overreacting Apple fan or investor accused me of being with Wall Street sentiment against Apple. So for one and for all I will write it, I only will write it once, so please READ IT CAREFULLY.
I am an Apple shareholder since 2000, I bought 100 shares at $100. Now they are 2800. My target sell price is much more than the current one, even higher than the one Icahn said was his last year target price for Apple ($240). That's the bearish sentiment of Apple I got, OK? That means that I will wait till it happens, nope, because what I watch is the performance of my portfolio as a whole, and if it reaches a level where I feel satisfied, I will sell.
And yes, I'm with you that Apple is undervalued by far. But sorry guy, maybe is because i'm old, but whatever we think about Wall Street, they will do what they think is correct, I assume that in Wall Street are pros as much as ordinary people like you and me, so blaming Wall Street is blaming ourselves. I hope Apple stock go up with time, is my bet. And I don't have any intention to get out of it any time soon. The market is wrong and the PE is too low, and time will prove it. So calm down, relax, and wait to see your profits get to your door. Because if you have your money where seems to be your mouth (mine is there), sooner or later a tide of profits will ring your door bell.
If what I said don't likes you, sorry. But here in Europe is late, and I'm taking care of an ALS diagnosed close relative, so I don't have the time, the strength, and the interest to argue with you about this issue anymore. I'm with you about Wall Street attitude with Apple, I'm not with you in the expectations of Wall Street last June quarter, period. Any other thing I have said, forget it, I'm physically tired, Scared with my relative desease, and tired of getting forever in the loop of the PE argument. Yes, WS is wrong, but we must give them the time to understand it, live has prove them right other times, and they think they are right this time too, and they have the right to believe in their arguments, and we to believe they are wrong. TIME WILL TELL...
Again, not a bad thing as far as business goes, just further proof that we need to accept the days of Earth-shaking reality-altering announcements and sales numbers are gone, and here we find ourselves, computing in the sweet hereafter.
Then we also need to accept that there is no individual, no company, no startup in existence or on the horizon that has any chance of replacing Apple in that rare atmosphere of “Earth-shaking, reality-altering announcements and sales numbers,” certainly not the current lineup of tech companies out there. They all look to Apple for inspiration and direction in the first place. The innovation engine is grinding to a halt globally.
The only word those greedy morons on Wall Street understand is "More!" Pathetic.
Over the past 52 weeks Intel Corp. is easily outperforming Apple in share gains despite all the supposed decline in PC sales and now they've decided they need to lay off 12,000 employees. I'm willing to bet Intel Corp. continues to see higher gains than Apple and Apple will still be considered the main company that's ripe for failure. There's just not going to be any share gains in sight for Apple shareholders thanks to plenty of negative advance reports of poor iPhone sales. We're going to have to depend upon Apple giving us dividend increases to make it worthwhile owning Apple stock. Apple's institutional ownership percentage continues to fall as the big boys don't think Apple is worth buying despite buybacks and dividends. There's simply something about Apple that the big investors don't like and I'm not sure what it is. My guess is they don't like Tim Cook. There's something about him that doesn't instill investor confidence.
Meh. There will come a point where iPhone sales will no longer continue to grow every quarter. We're probably getting close right now.
At which point Apple will have to "settle" for only selling 250 million iPhones every year to upgraders and "sufffer" with the $150 billion or so in revenue they will generate. Apple is doomed.
We need to get our heads around the disconnect between Apple the company and AAPL the stock. There are lots of successful companies who make lots of money but whose stock is not favored by Wall Street because they are not growing at the rate investors think they should be. I think Apple is slowly becoming a value stock rather than a growth stock. In other words it’s becoming a bluechip like AT&T, whose stock price trades in a very narrow range but lots of people own it because it pays good dividends and is reliable, not much of a gamble. It’s utter nonsense to believe that Apple or AAPL is on the brink of collapse and only the stupid would even entertain such an idea.
Well put. Don't expect massive growth opportunities anymore, but definitely take the healthy dividend.
Oh forget about the p/e and sales. It is so transparent that this goddamn stock is in a HARNESS. There is so much hedging involved it is impossible for it to rise any any good news. The "AAPL is now a value stock" meme has been circulating since 2012! If the stock didn't go up wildly in 2014 and 2015 on those historic sales increases then it is NEVER going up again. The manipulation here is just staggering. The govt watchdogs?--are waiting with sharpened knives to attack--Apple!
Think about what a sure thing this scheme is for these market Players. They can speculate on other stocks but secure their month-end profit results from the dumb mule they have in the harness, reliably plowing away with no-one to ever question what's really going on.
I guess this is proof for me that "the market can stay irrational longer than you can stay solvent". One of these days actual profits and cash will matter again.
Just let's wait and see. iPhone 4, 4s, 5 devices are now being replaced with 6s and 5SE in droves. I just went from a 3GS to a 6s. I wonder how long plastic iPhone lookalikes last.
Comments
I'm getting tired that, from time to time, an overreacting Apple fan or investor accused me of being with Wall Street sentiment against Apple. So for one and for all I will write it, I only will write it once, so please READ IT CAREFULLY.
I am an Apple shareholder since 2000, I bought 100 shares at $100. Now they are 2800. My target sell price is much more than the current one, even higher than the one Icahn said was his last year target price for Apple ($240). That's the bearish sentiment of Apple I got, OK? That means that I will wait till it happens, nope, because what I watch is the performance of my portfolio as a whole, and if it reaches a level where I feel satisfied, I will sell.
And yes, I'm with you that Apple is undervalued by far. But sorry guy, maybe is because i'm old, but whatever we think about Wall Street, they will do what they think is correct, I assume that in Wall Street are pros as much as ordinary people like you and me, so blaming Wall Street is blaming ourselves. I hope Apple stock go up with time, is my bet. And I don't have any intention to get out of it any time soon. The market is wrong and the PE is too low, and time will prove it. So calm down, relax, and wait to see your profits get to your door. Because if you have your money where seems to be your mouth (mine is there), sooner or later a tide of profits will ring your door bell.
If what I said don't likes you, sorry. But here in Europe is late, and I'm taking care of an ALS diagnosed close relative, so I don't have the time, the strength, and the interest to argue with you about this issue anymore. I'm with you about Wall Street attitude with Apple, I'm not with you in the expectations of Wall Street last June quarter, period. Any other thing I have said, forget it, I'm physically tired, Scared with my relative desease, and tired of getting forever in the loop of the PE argument. Yes, WS is wrong, but we must give them the time to understand it, live has prove them right other times, and they think they are right this time too, and they have the right to believe in their arguments, and we to believe they are wrong. TIME WILL TELL...
iPhone 4, 4s, 5 devices are now being replaced with 6s and 5SE in droves. I just went from a 3GS to a 6s.
I wonder how long plastic iPhone lookalikes last.