For me it's not about the short term. It's about Apple having a PE of 13 while Google's is 30 and Microsoft's is 36. And according to the talking heads on CNBC both of those stocks are "cheap". Last quarter Apple's revenues were up 30%+ YOY, they beat top and bottom line guidance and EPS and the stock tanked because it didn't meet some stupid "whisper numbers". Microsoft had nothing close to 30% YOY revenue growth yet their stock is up over 12% the last two days.
Few years ago, Apple and Google had similar PE's(about 17). Microsoft's PE was around 15 before Satya Nadella took over. Just because Google's PE is 30 now doesn't mean it will stay that way(in fact, most likely it will fall).
The main reason Apple's stock is trading weak is because the wall street thinks Apple can't possibly do better than last year's iPhone 6. By next spring/summer when Apple has proven that it can continue to grow, I can see PE going back up to 16-18.
Your response is setting up a false and limited choice. The main thrust is AAPL is not performing from an investors (not the same as a trader) perspective for the past 3 years. No one has suggested that they stop work on the ecosystem or go into financial engineering or whatever.
Increasing shareholder value is the primary responsibility of the CEO. Cook, along with the Board, has WASTED $100,000,000,000 in useless buybacks, share price is about where it was 3 years ago, innovation is lagging and Wall Street is punishing AAPL accordingly.
Cook and the Board need to step up and perform on this part of their job as well.
You think major (as in "largest in the world") corporations have no political clout in this country?
Pathetic indeed.
I disagree with your assessment that Tim Cook can "rectify" Apple's share price by fixing Wall Street due to phone calls to SEC/FTC or whoever else you're referring to. And stop calling me profane names. Hope you get banned. At minimum you're blocked.
I second the idea of no guidance, less things to pick at. Side note: I remember the last time AAPL crept over the 18.0 p/e threshold USA Today came out with some article specifically talking about how Apple can't break this 18.2-3 hurdle. Sure enough they didn't and soon after it came down from there.
The stock price in the LONG-TERM does not reflect economic reality. Who thinks that MSFT has been more successful than Apple the last 5 years? No one. Yet the manipulated stock price says MSFT has been destroying Apple. Sick of this shit.
The economic reality is the last 5 years MSFT has been a huge LOSER getting destroyed in Mobile and losing big time. Apple has been dominating the market. Yet the stock price is the EXACT opposite. FOR FIVE YEARS!!!! This shit needs to stop. Time to take the company private so Wall Street manipulators, day traders, short traders, option manipulators, and algo machines are excluded from touching the stock.
If Apple goes private its shares can be held in a Mutual fund that does not allow day trading, options trading, and algo machine trading. That would move the stock price up 30-40% in a matter of weeks.
This chart is garbage. MS did nothing for 15 years and only recently jumped up. We can do the same snapshot from early 2015 or another period and come to the reverse conclusion. The point of being long is that you think growth or appreciation is in the future. If you believe AAPL is undervalued as many of us do, buy more! Assuming taking Apple were possible (and that's a big if) we as investors would have no opportunity to benefit from owning it. For this and many other reasons, going private is a stupid proposition
Your response is setting up a false and limited choice. The main thrust is AAPL is not performing from an investors (not the same as a trader) perspective for the past 3 years. No one has suggested that they stop work on the ecosystem or go into financial engineering or whatever.
Increasing shareholder value is the primary responsibility of the CEO. Cook, along with the Board, has WASTED $100,000,000,000 in useless buybacks, share price is about where it was 3 years ago, innovation is lagging and Wall Street is punishing AAPL accordingly.
Cook and the Board need to step up and perform on this part of their job as well.
You talk like a fracking analyst. Exact same BS crap pulled out of their ass.
"innovation is lagging" is not a justification for Wall Street, and certainly not for you because it's not true.
And even if it was...
There are 100 tech companies on Wall Street who did much better in the stock market
while producing garbage products for the last 5 years,
producing less revenue, less revenue growth, less profits and less profit growth (if not actually losing money)
and that includes Amazon, google and Microsoft and a whole litany
of crap overvalued companies that those "genius" dumbass on betting on.
Many of which will eventually implode with a poor sucker holding the bag at the end.
You act like those Wall Street analysts actually know what the hell they're talking
when looking beyond the current quarter in tech : It is obvious they don''t as they''re so often wrong.
For them, and probably you, Apple was doomed 4 years ago.
Afraid to dig up the damn quotes?
Come up with something better, something that actually makes sense with the facts at hand and then justify it, and then we can talk.
Otherwise its just some narrative you cooked in your head.
You would not have to sell shares if Apple went private. Your shares would simply be converted to private shares held in a Mutual fund that would still pay dividends and that you could still buy and sell like any Mutual fund.
The benefit is Mutual funds are not subject to option trading, day trading, and high speed computer trading. Those are the elements that force Apple's stock price down.
Yes, but you'd be sacrificing an unlimited amount of upside potential. Correct me if I'm wrong, but the value of a privately held stock is equal to it's book value, which is significantly less than the market value for publicly traded stocks (on average)
Comments
For me it's not about the short term. It's about Apple having a PE of 13 while Google's is 30 and Microsoft's is 36. And according to the talking heads on CNBC both of those stocks are "cheap". Last quarter Apple's revenues were up 30%+ YOY, they beat top and bottom line guidance and EPS and the stock tanked because it didn't meet some stupid "whisper numbers". Microsoft had nothing close to 30% YOY revenue growth yet their stock is up over 12% the last two days.
Few years ago, Apple and Google had similar PE's(about 17). Microsoft's PE was around 15 before Satya Nadella took over. Just because Google's PE is 30 now doesn't mean it will stay that way(in fact, most likely it will fall).
The main reason Apple's stock is trading weak is because the wall street thinks Apple can't possibly do better than last year's iPhone 6. By next spring/summer when Apple has proven that it can continue to grow, I can see PE going back up to 16-18.
Your response is setting up a false and limited choice. The main thrust is AAPL is not performing from an investors (not the same as a trader) perspective for the past 3 years. No one has suggested that they stop work on the ecosystem or go into financial engineering or whatever.
Increasing shareholder value is the primary responsibility of the CEO. Cook, along with the Board, has WASTED $100,000,000,000 in useless buybacks, share price is about where it was 3 years ago, innovation is lagging and Wall Street is punishing AAPL accordingly.
Cook and the Board need to step up and perform on this part of their job as well.
You think major (as in "largest in the world") corporations have no political clout in this country?
Pathetic indeed.
I disagree with your assessment that Tim Cook can "rectify" Apple's share price by fixing Wall Street due to phone calls to SEC/FTC or whoever else you're referring to. And stop calling me profane names. Hope you get banned. At minimum you're blocked.
I've never sold a single share of AAPL and have no plans to do so soon.
This chart is garbage. MS did nothing for 15 years and only recently jumped up. We can do the same snapshot from early 2015 or another period and come to the reverse conclusion. The point of being long is that you think growth or appreciation is in the future. If you believe AAPL is undervalued as many of us do, buy more! Assuming taking Apple were possible (and that's a big if) we as investors would have no opportunity to benefit from owning it. For this and many other reasons, going private is a stupid proposition
Tim Cook is part of the problem! I wish Steve was coming back.
He'd be awfully squishy by now, smell pretty bad too.
Your response is setting up a false and limited choice. The main thrust is AAPL is not performing from an investors (not the same as a trader) perspective for the past 3 years. No one has suggested that they stop work on the ecosystem or go into financial engineering or whatever.
Increasing shareholder value is the primary responsibility of the CEO. Cook, along with the Board, has WASTED $100,000,000,000 in useless buybacks, share price is about where it was 3 years ago, innovation is lagging and Wall Street is punishing AAPL accordingly.
Cook and the Board need to step up and perform on this part of their job as well.
You talk like a fracking analyst. Exact same BS crap pulled out of their ass.
"innovation is lagging" is not a justification for Wall Street, and certainly not for you because it's not true.
And even if it was...
There are 100 tech companies on Wall Street who did much better in the stock market
while producing garbage products for the last 5 years,
producing less revenue, less revenue growth, less profits and less profit growth (if not actually losing money)
and that includes Amazon, google and Microsoft and a whole litany
of crap overvalued companies that those "genius" dumbass on betting on.
Many of which will eventually implode with a poor sucker holding the bag at the end.
You act like those Wall Street analysts actually know what the hell they're talking
when looking beyond the current quarter in tech : It is obvious they don''t as they''re so often wrong.
For them, and probably you, Apple was doomed 4 years ago.
Afraid to dig up the damn quotes?
Come up with something better, something that actually makes sense with the facts at hand and then justify it, and then we can talk.
Otherwise its just some narrative you cooked in your head.
Yes, but you'd be sacrificing an unlimited amount of upside potential. Correct me if I'm wrong, but the value of a privately held stock is equal to it's book value, which is significantly less than the market value for publicly traded stocks (on average)
Apple "beat the Street":
Apple reporting $1.96/share on 51.5B revenue. Beating the street.
10/27/15, 1:30 PM
iPhone up 22% YOY to 48M, iPad down 20% YOY to 10M, Mac record 5.7M, up 3.3% YOY 39.9% margin
10/27/15, 1:31 PM
China revenue up 99%
10/27/15, 1:31 PM