jdnc123
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Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'
foggyhill said:jdnc123 said:Honest question. How do you think Steve Jobs would feel about the market saying Google is a better and thus more valuable company as it is today. Google has an enterprise value of $420 billion versus Apple at $372 billion. Google is about to pass Apple in market cap also. The stock is lower than it was in 2012 due to massive multiple compression, which has happened because the Street saw the growth slowing, apparently even before the CEO did. Google has increased by $200 billion or so in value since 2012, MIcrosoft by $150 billion, Netflix by $40 billion, Amazon by $175 billion, all while Apple lost $130 billion of total enterprise value. The idea that this is just 'the market' is complete and utter garbage. Its an Apple problem, not a market problem. I'm a lover of Apple products and owner of the stock, but I can't convince myself that the other companies I mentioned havent been making bolder moves than Apple under Tim Cook.
I personally think Jobs is rolling in his grave because Cook has allowed Google to surpass Apple in value. Given how much he hated them, he has to be.
If they fucking anticipated the slowdown .... Right.... Why didn't those moron anticipate 200B in profits and reflect it the god damn price like they're supposed to.
Price of stock is supposed to reflect present value of future profit, are you telling me that's what Wall street did 3 years ago; are you for god damn real?
Please start making sense in your argument.
Wall street shits out a number based who the knows what. Google would need to quadruple its profit within 3-4 years for its valuation to make sense; well, good luck on that with Facebook breathing down their necks and their moonshots all using up money instead of generating it.
Apple is currently on a negative growth trajectory. They have more cash than any company in the history of the world and can't grow. That's the main problem. All the resources anyone can imagine and they can't muster up an idea to show growth from here. It's reality until they prove the Street wrong and I got no sense from the conf call that they are prepared to change that view this year. Frankly, it sounded pathetic and like panic. Last quarter Cook says no problems in China and now this quarter they are experiencing a slowdown like they've never seen before. Good fcking hell, everyone and their mother has been saying China was slowing down for a year and yet Cook got caught by surprise by it. Maybe he didn't see it as early, but given all the datapoints out there that it was slowing he sure as heck could have made some contingencies versus just dismissing only 3 months ago.
I worry about employee retention. Anyone who joined the company in the last three years is working for salary only and not stock comp as the options aren't increasing in value like they did in the past. Much easier to argue to yourself that you can kill it at a smaller startup (or at Google based on recent stock performance) if you are a talented engineer by NOT going to Apple. -
Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'
rogifan_old said:Every time Apple goes through a bit of a downturn people panic and come up with crazy ideas. Back in 2013 one analyst started floating rumors about the board looking to replace Tim Cook. Now you have analysts saying Apple to spend its cash to buy growth. Right, because large acquisitions have turned out great for other companies in the past. Then you get the clowns that say Wall Street loves Google and Facebook so Apple needs to get into ads and social networking. It's all nonsense. Maybe Apple isn't a growth story so much anymore. So what? Who else is generating the kind of revenue, profits and cash flow that Apple is? No one. Sure Amazon can grow their top line 20% but they have next to no profit to show for it and there's zero indication meaningful profits will be flowing anytime soon. Has there ever been a company receiving so much doom and gloom after reporting 18 BILLION in profit for ONE QUARTER? Most Fortune 500 companies don't post that for an entire year much less one quarter yet here we are questioning whether we're seeing peak Apple. Seriously? -
Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'
adrayven said:sog35 said:And who's fault is that?
Did Tim Cook give us guidance for revenue for the rest of 2016?
Did he give us guidance for 2017?
Did he gives us guidance regarding what the install base will be in 3 years, 5 years, and 10 years?
Did he give us guidance for what he expects service revenue (the next growth product) to be in the next 3 years?
NO.
Or course Wall Street only looks 3 months ahead. Because that's all Tim Cook will talk about in solid terms. He is too secretive about the future so Wall Street does not give them any credit for the future.
This goes back to what I've been saying for YEARS. Tim Cook has no vision. Or he does but does not articulate it clearly to Wall Street. Wall Street sees Apple simply as a hardware company. Yesterday was the first time Apple even tried to hint at services being a massive part of Apple in the future. $30 billion in services is massive for 2015. Yet I don't see a single headline talking about that. Sad. The reason is he should have been pushing the install base/services/monitize install base theme YEARS AGO. Now it looks like a desperate move.
Stock has lost $30 billion today. Total lost is over $250 billion since last year. We could easily see $80 stock price in a few days. All because Apple is run by a CEO who has no idea how to control the narrative of the company.
I personally think Jobs is rolling in his grave because Cook has allowed Google to surpass Apple in value. Given how much he hated them, he has to be.