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How Steve Jobs Buys a Company and Why Apple Bought Lala

iGrip

iGrip

macrumors 68000
Jul 1, 2010
1,626
0
cappadonna said:
Because the company's financials are not declining. It's not a 1:1 relationship when it comes to AAPL. All indications are that Apple has a monster qtr, but "unnamed sources" are driving the stock down.

If apples numbers on Wednesday justify the drop in stock price, then ok. But there's no indication that that's the case other than these unnamed sources.

Att said they had a record qtr for iPhones.

Verizon says that had a "higher mix" of iPhones sold in the qtr

Apple sold five million phones in three days in the US

Apple sold two million phones (without China mobile) in three days in China

Apple had the fastest rollout in their history for the iPhone 5

The mini is a huge hit as verified by apple

With all these confirmed sources, why is the stock down?

Like I said, if they start reporting declines in sales, revenues, profits then yes it's time to worry. But apple may be the only company in the planet that can make 8 billion dollars/qtr and still be a "miss"
Click to expand...

Stocks are not priced on what the company did yesterday. Instead, they are priced based upon what one expects will happen in the future. That is why stock indexes are treated as leading indicators. Generally, the time frame is thought to be around 6 months, or two calendar quarters.

Clearly, as of late, many investors think Apple will be unable to continue growing profits at its recent pace. Each factor you cite is insufficient to make Apple investors think that tomorrow will be more profitable than yesterday.
 
MacDav

MacDav

macrumors 65816
Mar 24, 2004
1,031
0
SvK said:
President Obama and his team are doing just fine fixing the economy.
Click to expand...

Really? List ten things they've done to fix the economy. List three. List things that a bipartisan sample of the population would agree on. ;)
 
T

Towhead

macrumors regular
Nov 3, 2007
104
0
KnightWRX said:
The comic ? no. The comic used the word googol, a representation of a very big number.
Googol is an actual word :
Click to expand...

I stand corrected - it's googol, One followed by a hundred zeros. The comic came out nearly 40 years ago so it was hard to remember ...

Still, I wonder if the REAL source was a Richie Rich comic ... if it was they'd not admit it anyway.
 
MacDav

MacDav

macrumors 65816
Mar 24, 2004
1,031
0
Only if "saying precisely what I mean" = "being slippery".[COLOR="#808080" said:
I hate to break it to you but precisely everything you cited regarding how Government should be run, results in large bloated Government. ;)
Click to expand...
 
AidenShaw

AidenShaw

macrumors P6
Feb 8, 2003
18,667
4,676
The Peninsula
or, if a core demographic turns against them....

cappadonna said:
Because the company's financials are not declining. It's not a 1:1 relationship when it comes to AAPL. All indications are that Apple has a monster qtr, but "unnamed sources" are driving the stock down.

If apples numbers on Wednesday justify the drop in stock price, then ok. But there's no indication that that's the case other than these unnamed sources.

Att said they had a record qtr for iPhones.

Verizon says that had a "higher mix" of iPhones sold in the qtr

Apple sold five million phones in three days in the US

Apple sold two million phones (without China mobile) in three days in China

Apple had the fastest rollout in their history for the iPhone 5

The mini is a huge hit as verified by apple

With all these confirmed sources, why is the stock down?

Like I said, if they start reporting declines in sales, revenues, profits then yes it's time to worry. But apple may be the only company in the planet that can make 8 billion dollars/qtr and still be a "miss"
Click to expand...

apple-is-no-longer-cool

new-research-suggests-teens-think-apple-is-no-longer-cool


Apple went "thermonuclear" against Android, but it looks like the bomb exploded in Cupertino - not in Mountain View.

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MacDav said:
Only if "saying precisely what I mean" = "being slippery".

I hate to break it to you but precisely everything you cited regarding how Government should be run, results in large bloated Government. ;)
Click to expand...


Please take the right wing rhetoric to the political thread - it's not relevant here.
 
T

Towhead

macrumors regular
Nov 3, 2007
104
0
MacDav

MacDav

macrumors 65816
Mar 24, 2004
1,031
0
MacDav

MacDav

macrumors 65816
Mar 24, 2004
1,031
0
AidenShaw said:
apple-is-no-longer-cool

new-research-suggests-teens-think-apple-is-no-longer-cool


Apple went "thermonuclear" against Android, but it looks like the bomb exploded in Cupertino - not in Mountain View.

----------





Please take the right wing rhetoric to the political thread - it's not relevant here.
Click to expand...

You are correct that this is not the place for political disscussion. You are incorrect about the rhetoric being right wing. I am objectively central. You are so far to the left that I seem right wing to you. ;)
 
KnightWRX

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
Towhead said:
I stand corrected - it's googol, One followed by a hundred zeros. The comic came out nearly 40 years ago so it was hard to remember ...

Still, I wonder if the REAL source was a Richie Rich comic ... if it was they'd not admit it anyway.
Click to expand...

You wonder if a bunch of CS Stanford students who claimed the inspiration come from the word Googol actually got it... wait.. a Richie Rich comic rather than just their own math courses ?

They say it was the word, that's what it is. Nothing to do with a 40 year old comic strip, the word predates it.
 
C

cappadonna

macrumors regular
Jan 15, 2013
100
0
iGrip said:
Stocks are not priced on what the company did yesterday. Instead, they are priced based upon what one expects will happen in the future. That is why stock indexes are treated as leading indicators. Generally, the time frame is thought to be around 6 months, or two calendar quarters.

Clearly, as of late, many investors think Apple will be unable to continue growing profits at its recent pace. Each factor you cite is insufficient to make Apple investors think that tomorrow will be more profitable than yesterday.
Click to expand...

Well I know that, that's why I said the stock valuation has nothing to do with the company financials. Because Apple has not (yet) shown any sign of slowing at least in their books.

They've had two misses in a row which clobbered the stock, but those two misses included over 16bn in profit, and multi millions in device sales including sales records for the iPad. If they miss again this earnings call, it'll also be a miss that made them billions upon billions of dollars.

It's unfortunate that stock price is the leading indicator but it is. I know that the only way the stock will rebound is if they don't miss the ws expectation, but my point was the stock value is not a 1:1 indicator that Apple is doomed. In Apple's case It couldn't be further from the truth. I'm sure you know Apple has at least a decade left in them, and most probably more.

It's a nice talking point though.
 
iGrip

iGrip

macrumors 68000
Jul 1, 2010
1,626
0
cappadonna said:
I'm sure you know Apple has at least a decade left in them, and most probably more.
Click to expand...

That depends on how quickly Apple declines. At the current pace, a decade may be reasonable. But the decline may accelerate, or there could be a huge tipping point/inflection. Then again, Apple may start innovating again, and recover. We can't really know the future.

But I agree with you that Apple's best days are very likely behind them.
 
C

cappadonna

macrumors regular
Jan 15, 2013
100
0
iGrip said:
That depends on how quickly Apple declines. At the current pace, a decade may be reasonable. But the decline may accelerate, or there could be a huge tipping point/inflection. Then again, Apple may start innovating again, and recover. We can't really know the future.

But I agree with you that Apple's best days are very likely behind them.
Click to expand...

I never said their best days are behind them. I did say that they've been doing great for a long time and this stock valuation does not mean they are doomed.

The decline you speak of is ONLY in stock value. All their other numbers are up our at least steady...definitely not in decline.

I can almost guarantee that will have the best qtr in years if not ever come Wednesday. I'd be shocked if that wasn't the case
 
A

abhishake

macrumors regular
Jul 14, 2005
155
16
Mr. Retrofire said:
You have no proof.


And this reason is?
Click to expand...

Companies have to report earnings which clearly state a company's revenues and earnings. The market cap, which I mentioned, is based off of share price x the number of shares outstanding. It is a universal way of understanding how much a company is publicly worth.

This is basic finance.
 
theBB

theBB

macrumors 68020
Jan 3, 2006
2,453
3
marksman said:
Saying google sold search placement is actually something that could cause google harm and be actionable because google makes all their money from search ads to go along with the 100% organic and free search results. Even the idea that they are selling organic search placement could seriously harm their business.
Click to expand...
Yepp, whoever posted this news story needs to look up the definition of libel.
 
T

Towhead

macrumors regular
Nov 3, 2007
104
0
KnightWRX said:
You wonder if a bunch of CS Stanford students who claimed the inspiration come from the word Googol actually got it... wait.. a Richie Rich comic rather than just their own math courses ?

They say it was the word, that's what it is. Nothing to do with a 40 year old comic strip, the word predates it.
Click to expand...

That's what I said. So what? Pray tell the math course that uses the word googol. Come on, KnightWRX, are you trying to get a job with Google or something? Sure seems that way.
 
KnightWRX

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
Towhead said:
That's what I said. So what? Pray tell the math course that uses the word googol. Come on, KnightWRX, are you trying to get a job with Google or something? Sure seems that way.
Click to expand...

Uh ? I found you a quote by someone in the know about the actual origin... What does that have to do with me trying to get a job there ? ( btw, no, their Montreal offices don't really have any interesting jobs in my field ). Stop over-thinking. They say the name comes from Googol, that where it comes from.
 
iGrip

iGrip

macrumors 68000
Jul 1, 2010
1,626
0
KnightWRX said:
Wait, when did this decline start and what is its pace ?
Click to expand...

Damn near a third of its market value in about 3 or 4 months.

At that rate, it will be down to around 350 three or four months from now, and down to about 250 in another 3 or four months, and down to around 175 3 or 4 months after that.

But things rarely travel in such a linear manner - often there are inflection points. Nobody has any way to know what the future will hold.
 
KnightWRX

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
iGrip said:
Damn near a third of its market value in about 3 or 4 months.

At that rate, it will be down to around 350 three or four months from now, and down to about 250 in another 3 or four months, and down to around 175 3 or 4 months after that.

But things rarely travel in such a linear manner - often there are inflection points. Nobody has any way to know what the future will hold.
Click to expand...

Oh silly me, I thought you were talking about something that mattered, you're just referencing the stock. We can also follow a different pace...

Dec 30 2011 - 401.44
Dec 31 2012 - 532.17

Funny how that works uh ?
 
C

cappadonna

macrumors regular
Jan 15, 2013
100
0
KnightWRX said:
Oh silly me, I thought you were talking about something that mattered, you're just referencing the stock. We can also follow a different pace...

Dec 30 2011 - 401.44
Dec 31 2012 - 532.17

Funny how that works uh ?
Click to expand...

Yep the 32% increase yoy is ignored, but the decrease signals a death knell. Live by the stock, die by the stock I guess..:D
 
M

mooeymoose

macrumors newbie
Jul 24, 2009
21
1
Squilly said:
Chances are Google has more revenue & profits than Apple. They have a search engine, Android, RELIABLE Maps, etc.
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Its true that apple has more cash on hand is worth more as a company. Apple stock also has a P/E that is half what google is. However, why would anyone want apple to buy google or google to buy apple. Back in the day there were laws again forming a monopoly. It is also in everybody's best interest if these two compete.
 
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