Every publicly held company is assessed under different expectations. Some companies are expected to have even higher YoY growth. Most are not.
I realize these concepts are very difficult for many readers at tech news sites to grasp (and not just AI, MacRumors, Macworld).
And these expectations change over time. Do you remember Apple in 1997? I guarantee you that the Street did not expect 30% YoY growth from AAPL in the mid-Nineties.
It's amazing that a company like Apple which has profits every year in the tens (hundreds) of billions of dollars, have record revenue YoY can be crucified by Wall Street for "not meeting revenue forecasts" that they fabricated out of thin air...
And then we have companies like Tesla which can barely make a profit since essentially from day one, and have a worse PE ration and people just keep making TSLA climb.
It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly.
You’re a lot smarter than your financial advisor.
Yes he is, mine was also a douche when it came to Apple if I had listened to him I would poorer, everything was just a number/symbol he knew nothing about what companies actually did in any real detail.
Long since 2005, started out with an initial investment of 18,000 dollars, now in the multiple 7 digits all due to Apple, First Solar, and Monster Drink, but primarily due to Apple, thank you Apple, I’m dumbfounded, and perplexed every time.
It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly.
My 401k holdings are about the same value as my AAPL stock. The AAPL stock was purchased between 2003 and 2008 with an initial investment of ~15K. On average I have put in 15K per year into my 401K since 2002. Whilst the 401K has done okay it pales into insignificance compared to the performance of AAPL. Of course there has been ups and downs but the same can be said for my 401K funds. If I had listened to my financial advisors I would have half of the value in my retirement fund. Sure it is risky to have a lot in one stock but since it really only cost me 15K it has been worth the risk. Also I know Apple's performance and stability very well and whilst the market has knee jerk reactions, I have yet to see any signs that Apple is faltering in their approach. If anything, innovations like AppleSilicon, continuing iPhone success, growth of the services business and wearables makes me more bullish than ever.
It’s Apple, what more can anyone say? According to Wall Street the company is a failure. I had to order my financial advisor to put some AAPL in my portfolio. He did so reluctantly.
My 401k holdings are about the same value as my AAPL stock. The AAPL stock was purchased between 2003 and 2008 with an initial investment of ~15K. On average I have put in 15K per year into my 401K since 2002. Whilst the 401K has done okay it pales into insignificance compared to the performance of AAPL. Of course there has been ups and downs but the same can be said for my 401K funds. If I had listened to my financial advisors I would have half of the value in my retirement fund. Sure it is risky to have a lot in one stock but since it really only cost me 15K it has been worth the risk. Also I know Apple's performance and stability very well and whilst the market has knee jerk reactions, I have yet to see any signs that Apple is faltering in their approach. If anything, innovations like AppleSilicon, continuing iPhone success, growth of the services business and wearables makes me more bullish than ever.
Wall Street doesn’t care by and large but the M series system on a chip cpu (in the new PowerBook) by Apple, screams….. stock buying opportunity.
Apple's stock is up by over 30% yoy. A negative correction of a couple percentage points because the stock was inflated by expectations that weren't met is entirely normal.
As I wrote on another thread recently, this sort of thing is a key part of what’s wrong with the financial sector. I predicted the ‘strong earnings, but falls short of expectations, so stock price falls’ scenario, not because I’m brilliant, but because it’s so obvious.
Apple plays this quarterly earnings game because they’re legally required to, and then they go back to operating on a much longer time scale. That’s why they continue to be successful.
Most of the finance industry’s incentives reward short-term thinking and short-term actions. It makes a few people rich, but it also makes a mess of things for everyone else.
Apple can afford to ignore a drop in their stock price in spite of reporting record earnings. Others with the same whiplash could be more negatively impacted, with corporate boards in a constant panic, demanding the company do things (like cut R&D or labor costs) to hit quarterly targets, even at the expense of long-term objectives.
Microsoft has now replaced Apple as the world's most valuable public company. Is that a result of this week's earnings announcements? I seriously had no idea they were so close in valuation.
AMZN is a better buying opportunity. It's way off it's 52 week high and it's down 4% in after hours trading. FB is also way off its 52 week high also it is mostly unmoved today in after hours.
AAPL is still very close to its 52 week high. NVDA, NFLX, and TSLA are all trading near their 52 week highs.
Apple is not doing itself any favors by withholding guidance.
With all the uncertainty about the supply chains effects this holiday
Apple gives no guidance ... wall street pushes it down since they don't get easy information to manipulate Apple gives guidance but is too optimistic and misses ... wall street pushes it down and frames it as a company on the decline Apple gives guidance beneath what wall street wants to see ... wall streets pushes stock down because a number doesn't match a made up number in their head despite them consistently being wrong on Apple.
I say don't give them anything and concentrate on making great products and getting them to consumers.
Microsoft has now replaced Apple as the world's most valuable public company. Is that a result of this week's earnings announcements? I seriously had no idea they were so close in valuation.
MSFT market value exceeds AAPL has happened before. But it was reversed a few months later.
Comments
In the short run, the stock market is a voting machine.
In the long run, the stock market is a weighing machine.
The company just put up great numbers but not as great as some analysts predicted. As such, the stock is going to be beat up a bit. It happens.
As long as the company makes great products that the public wants to buy, the stock will be fine in the long run.
(Don't take any advice from me. I bought AAPL at $13ish... and sold at like $27.
Yes he is, mine was also a douche when it came to Apple if I had listened to him I would poorer, everything was just a number/symbol he knew nothing about what companies actually did in any real detail.
Long since 2005, started out with an initial investment of 18,000 dollars, now in the multiple 7 digits all due to Apple, First Solar, and Monster Drink, but primarily due to Apple, thank you Apple, I’m dumbfounded, and perplexed every time.
Ask 2021 Intel about Apple disruption their CEO was pitching Vaporware Heaven…..
Of course there has been ups and downs but the same can be said for my 401K funds. If I had listened to my financial advisors I would have half of the value in my retirement fund.
Sure it is risky to have a lot in one stock but since it really only cost me 15K it has been worth the risk. Also I know Apple's performance and stability very well and whilst the market has knee jerk reactions, I have yet to see any signs that Apple is faltering in their approach. If anything, innovations like AppleSilicon, continuing iPhone success, growth of the services business and wearables makes me more bullish than ever.
Wall Street doesn’t care by and large but the M series system on a chip cpu (in the new PowerBook) by Apple, screams….. stock buying opportunity.
Apple gives no guidance ... wall street pushes it down since they don't get easy information to manipulate
Apple gives guidance but is too optimistic and misses ... wall street pushes it down and frames it as a company on the decline
Apple gives guidance beneath what wall street wants to see ... wall streets pushes stock down because a number doesn't match a made up number in their head despite them consistently being wrong on Apple.
I say don't give them anything and concentrate on making great products and getting them to consumers.