The reason Apple does not surge up 10% on earnings like Google and Amazon is because Apple is no longer a Growth stock it is now an Income stock. Once you actually go and learn about the difference you might learn something? But I doubt it you are still fixated on the past and remaining ignorant of these facts.
There are basically three different ways to classify stocks.
(1.) Income Stocks - These are stocks that in general pay dividends and are also considered to be less volatile than other stocks. People close to retirement sometimes buy these types of stocks as additional income because of the dividends they pay.
(2.) Value Stocks - These stocks are considered to be from profitable companies that are selling at a reasonable price compared to their true worth. These stocks tend to be in less thrilling companies such as banks and insurance companies. People who invest in these companies really need to understand the fundamentals of a company to understand their true value.
(3.) Growth Stocks - These are the wild west of the stock market. They tend to be very volatile, but offer the chance for big gains for the short term investor. These stocks usually do NOT pay any dividends and are often related to the high-tech industries.
Because Apple now pays a dividend it has now started to become more of an income stock than a growth stock as it was in the past.
I think you guys are overdoing it a bit. Apple's stock went up a lot because sales went up a lot. As sales seem to be flattening, and iPad sales continue to drop a lot, they're going to be wary. Let's try to avoid shrill reasoning for them.
Earnings per share are up 38% year over year. That's not flattening. Cook went out of his way to emphasize that sales are accelerating, not flattening. And when one of Apple's lines is down as people buy another of their lines instead, why is that a negative? Apple makes almost all the profits in the PC hardware business, regardless of whether people buy their Macs or iPads.
I've said it before and I'll say it again I can't wait until Apple goes back to being Apple, Inc. instead of iPhone, Inc. Every single question on this conference call was about iPhone and the premise of every single question was negative gloomy and bleak. As long as Apple is all about iPhone ans Wall Street believes iPhone growth is over the stock will go nowhere.
So basically you want Apple to go back to an era when it was the underdog struggling to compete with Microsoft in the computer industry. That's why it changed its name from Apple Computer to Apple inc. Now I understand you. A Dinosaur indeed!
Apple is changing. this is great for investors rather than relying on one franchise it is branching out into many categories. YEs I'll admit over relying on one product could be troubling and that is the reason why they are putting investments behind such things as iWatch, self driving cars, Apple TV, Apple Home , Apple Pay. etc Its all good. Hopefully one of them will take off and reduce their dependence on iPhone?
Someone on Bloomberg.com commented that the stock is down because big-money got it wrong; thought the quarter would be worse than it was and need to drive the stock price down to cover their shorts.
The reason Apple does not surge up 10% on earnings like Google and Amazon is because Apple is no longer a Growth stock it is now an Income stock. Once you actually go and learn about the difference you might learn something? But I doubt it you are still fixated on the past and remaining ignorant of these facts.
Apple's earnings per share are up 38% year over year. Last year they "only" went up 20% year over year. Year after year they produce these enormous gains, and year after year wise guys like you keep saying: "Apple is no longer a growth stock." And that it somehow makes sense that the earnings soar and the stock price doesn't. A kid in kindergarten could extrapolate the trend better than Wall Street.
That's like saying, a few years ago, "I can't wait until MicroSoft is no longer about Windows and Office." There is no market like the smartphone market. In third world countries, smartphones are more important than indoor plumbing. Apple owns over 90% of the profits in that market, and the market's still got a long ways to go. If you include iPad, Apple currently makes over 75% of all profits in the PC hardware business, and that is ignored, because the cell phone market is 10x larger.
Yeah and one of the reasons Microsoft is at a 10 year high is because it's no longer all about Windows (and to a lesser extent Office).
The reason Apple does not surge up 10% on earnings like Google and Amazon is because Apple is no longer a Growth stock it is now an Income stock. Once you actually go and learn about the difference you might learn something? But I doubt it you are still fixated on the past and remaining ignorant of these facts.
There are basically three different ways to classify stocks.
(1.) Income Stocks - These are stocks that in general pay dividends and are also considered to be less volatile than other stocks. People close to retirement sometimes buy these types of stocks as additional income because of the dividends they pay.
(2.) Value Stocks - These stocks are considered to be from profitable companies that are selling at a reasonable price compared to their true worth. These stocks tend to be in less thrilling companies such as banks and insurance companies. People who invest in these companies really need to understand the fundamentals of a company to understand their true value.
(3.) Growth Stocks - These are the wild west of the stock market. They tend to be very volatile, but offer the chance for big gains for the short term investor. These stocks usually do NOT pay any dividends and are often related to the high-tech industries.
Because Apple now pays a dividend it has now started to become more of an income stock than a growth stock as it was in the past.
Since when is Microsoft a growth stock? Yet they posted a 10% gain after their earnings call last week and are at a 10 year high
Look while Apple's PE is relatively low there isn't a conspiracy to harm the stock price if guidance is low.
The reason Cook was asked about Q2 (March) is because they wanted him to say he was anticipating greater growth because of lower forex issues, but Apple never forecast that far ahead.
In the absence of such reassurance the analysts assume that the 4% growth will be the yearly growth rate, and that's a rate close to a y-o-y decline. Which might happen. In any case they are anticipating low to no growth in calendar 2016
Once again Apple is punished for providing guidance.
Apple absolutely killed it with massive revenue and profit growth in Q4. But Wall Street does not like the guidance for 4% revenue growth next quarter.
So no matter how well Apple did in Q4 the stock would not go up because of guidance.
Apple needs to STOP REPORTING GUIDANCE IMMEDIATELY. Let the current quarter stand on its own. If Apple has an amazing quarter let it get rewarded. By providing guidance Wall Street can totally ignore amazing quarters and immediatly bash next quarter.
Google does not provide guidance, thus Wall Street rewards Google when they have a strong quarter.
So basically you want Apple to go back to an era when it was the underdog struggling to compete with Microsoft in the computer industry. That's why it changed its name from Apple Computer to Apple inc. Now I understand you. A Dinosaur indeed!
Apple is changing. this is great for investors rather than relying on one franchise it is branching out into many categories. YEs I'll admit over relying on one product could be troubling and that is the reason why they are putting investments behind such things as iWatch, self driving cars, Apple TV, Apple Home , Apple Pay. etc Its all good. Hopefully one of them will take off and reduce their dependence on iPhone?
No I want the focus to be not 100% iPhone. Every single question on this conference call was about iPhone. I'm saying I can't wait until that is no longer the case.
Look while Apple's PE is relatively low there isn't a conspiracy to harm the stock price if guidance is low.
The reason Cook was asked about Q2 (March) is because they wanted him to say he was anticipating greater growth because of lower forex issues, but Apple never forecast that far ahead.
In the absence of such reassurance the analysts assume that the 4% growth will be the yearly growth rate, and that's a rate close to a y-o-y decline. Which might happen. In any case they are anticipating low to no growth in calendar 2016
Again like I said earlier Wall Street is convinced iPhone growth is over and nothing Apple reports or Tim says can change it. Of course Tim isn't going to give guidance two quarters out.
CFO and Cook said they were guiding for 7% currecny effect.
So with constant currency they were guiding for 11% revenue growth next quarter. Thats great growth for a company trading at sub 10 PE less cash.
Yes I did. But that number is apple's internal figure which analysts can't really verify. It's specifically why the analysts asked about the next quarter, and currency hedging. They want to know if cook would say that this headwind was a once off or not.of course he can't really say.
This is like expecting people not to ask Google about adverising on their conference calls.
But the difference is Google's search and advertising business is considered a monopoly. With Apple Wall Street is convinced a) no growth left for iPhone and/or b) iPhone can/will be disrupted by someone else (build a better mousetrap as CNBC's Joe Kernan would say). I don't agree with it but that is definitely the sentiment.
Yes I did. But that number is apple's internal figure which analysts can't really verify. It's specifically why the analysts asked about the next quarter, and currency hedging. They want to know if cook would say that this headwind was a once off or not.of course he can't really say.
Did Wall Street ask Google, Microsoft or Amazon about the March 2016 quarter? It's amazing every time Apple reports earnings somebody has a reason why it makes sense that the stock is flat or down. So we should all be jittery now because Apple won't give guidance two quarters out?
A monopoly? Hell no. Facebook is growing their advertising revenue much faster than Google. Amazon and Apple is also stealing search revenue from Google.
The bottom line is Wall Street is manipulating because they want to continue to make money selling options on Apple stock.
There is ZERO logic for valuing Apple at a sub 10 PE after taking out cash.
I'm just telling you what Wall Street thinks and the bottom line is in their eyes Google is a monopoly that can't be disrupted. Same with Amazon and apparently they feel that way about Microsoft's cloud business too.
Did Wall Street ask Google, Microsoft or Amazon about the March 2016 quarter? It's amazing every time Apple reports earnings somebody has a reason why it makes sense that the stock is flat or down. So we should all be jittery now because Apple won't give guidance two quarters out?
I am giving the analyst reasoning. Cook got in the 7% currency in an answer ( it's not in the formal transcript) and subsequently the next question was about how Apple anticipated revenue growth post Q1, that is post this once off headwind. Of course Cook can't be specific, or even have the numbers on that yet.
I'm just telling you what Wall Street thinks and the bottom line is in their eyes Google is a monopoly that can't be disrupted. Same with Amazon and apparently they feel that way about Microsoft's cloud business too.
I don't think they see both AWS and Azure as monopolies, they see huge growth there.
Comments
The reason Apple does not surge up 10% on earnings like Google and Amazon is because Apple is no longer a Growth stock it is now an Income stock. Once you actually go and learn about the difference you might learn something? But I doubt it you are still fixated on the past and remaining ignorant of these facts.
There are basically three different ways to classify stocks.
(1.) Income Stocks - These are stocks that in general pay dividends and are also considered to be less volatile than other stocks. People close to retirement sometimes buy these types of stocks as additional income because of the dividends they pay.
(2.) Value Stocks - These stocks are considered to be from profitable companies that are selling at a reasonable price compared to their true worth. These stocks tend to be in less thrilling companies such as banks and insurance companies. People who invest in these companies really need to understand the fundamentals of a company to understand their true value.
(3.) Growth Stocks - These are the wild west of the stock market. They tend to be very volatile, but offer the chance for big gains for the short term investor. These stocks usually do NOT pay any dividends and are often related to the high-tech industries.
Because Apple now pays a dividend it has now started to become more of an income stock than a growth stock as it was in the past.
I think you guys are overdoing it a bit. Apple's stock went up a lot because sales went up a lot. As sales seem to be flattening, and iPad sales continue to drop a lot, they're going to be wary. Let's try to avoid shrill reasoning for them.
Earnings per share are up 38% year over year. That's not flattening. Cook went out of his way to emphasize that sales are accelerating, not flattening. And when one of Apple's lines is down as people buy another of their lines instead, why is that a negative? Apple makes almost all the profits in the PC hardware business, regardless of whether people buy their Macs or iPads.
I've said it before and I'll say it again I can't wait until Apple goes back to being Apple, Inc. instead of iPhone, Inc. Every single question on this conference call was about iPhone and the premise of every single question was negative gloomy and bleak. As long as Apple is all about iPhone ans Wall Street believes iPhone growth is over the stock will go nowhere.
So basically you want Apple to go back to an era when it was the underdog struggling to compete with Microsoft in the computer industry. That's why it changed its name from Apple Computer to Apple inc. Now I understand you. A Dinosaur indeed!
Apple is changing. this is great for investors rather than relying on one franchise it is branching out into many categories. YEs I'll admit over relying on one product could be troubling and that is the reason why they are putting investments behind such things as iWatch, self driving cars, Apple TV, Apple Home , Apple Pay. etc Its all good. Hopefully one of them will take off and reduce their dependence on iPhone?
Not to mention some of the most idiotic advice anyone can financially suggest for a corporation targeted for $1 Trillion in valuation.
The reason Apple does not surge up 10% on earnings like Google and Amazon is because Apple is no longer a Growth stock it is now an Income stock. Once you actually go and learn about the difference you might learn something? But I doubt it you are still fixated on the past and remaining ignorant of these facts.
Apple's earnings per share are up 38% year over year. Last year they "only" went up 20% year over year. Year after year they produce these enormous gains, and year after year wise guys like you keep saying: "Apple is no longer a growth stock." And that it somehow makes sense that the earnings soar and the stock price doesn't. A kid in kindergarten could extrapolate the trend better than Wall Street.
Yeah and one of the reasons Microsoft is at a 10 year high is because it's no longer all about Windows (and to a lesser extent Office).
Since when is Microsoft a growth stock? Yet they posted a 10% gain after their earnings call last week and are at a 10 year high
The reason Cook was asked about Q2 (March) is because they wanted him to say he was anticipating greater growth because of lower forex issues, but Apple never forecast that far ahead.
In the absence of such reassurance the analysts assume that the 4% growth will be the yearly growth rate, and that's a rate close to a y-o-y decline. Which might happen. In any case they are anticipating low to no growth in calendar 2016
Don't they? I thought it was a requirement.
If Apple stop now people will assume the worst.
No I want the focus to be not 100% iPhone. Every single question on this conference call was about iPhone. I'm saying I can't wait until that is no longer the case.
Again like I said earlier Wall Street is convinced iPhone growth is over and nothing Apple reports or Tim says can change it. Of course Tim isn't going to give guidance two quarters out.
Yes I did. But that number is apple's internal figure which analysts can't really verify. It's specifically why the analysts asked about the next quarter, and currency hedging. They want to know if cook would say that this headwind was a once off or not.of course he can't really say.
But the difference is Google's search and advertising business is considered a monopoly. With Apple Wall Street is convinced a) no growth left for iPhone and/or b) iPhone can/will be disrupted by someone else (build a better mousetrap as CNBC's Joe Kernan would say). I don't agree with it but that is definitely the sentiment.
Did Wall Street ask Google, Microsoft or Amazon about the March 2016 quarter? It's amazing every time Apple reports earnings somebody has a reason why it makes sense that the stock is flat or down. So we should all be jittery now because Apple won't give guidance two quarters out?
I'm just telling you what Wall Street thinks and the bottom line is in their eyes Google is a monopoly that can't be disrupted. Same with Amazon and apparently they feel that way about Microsoft's cloud business too.
I am giving the analyst reasoning. Cook got in the 7% currency in an answer ( it's not in the formal transcript) and subsequently the next question was about how Apple anticipated revenue growth post Q1, that is post this once off headwind. Of course Cook can't be specific, or even have the numbers on that yet.
I don't think they see both AWS and Azure as monopolies, they see huge growth there.
Right. But they don't expect anyone else to disrupt either of them. That's my point.