'Nightline' Looks at Apple's Woes as Stock Declines 20% from All-Time High

carmenodie said:

Screw these analyst'
They drove up the stock price but there was no money to actually back that stock price. Happens all the time. Wall Street actually is overpriced. So much so that if all the investors made a run on the markets at the same time there wouldn't be any money to cover all those stocks. What a joke.

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heh heh, you do know that Apple average trading volume is about 18M share a day. At 540ish, it translate into close to $10B of transaction a day.. Analyst don't drive Apple stock price. Small investor don't drive Apple stock price. It is the hedge fund manage, mutual fund managers, pension fund managers that determine Apple stock price. And they will have enough MBA that will look at Apple earning statement, talk to the company and do their own channel check before making the investment. They are playing a game of poker and small investor is just an bystander that get sweep up in the motion..

I wonder how many folks posting in this thread actually read a single Apple earning report or listen to one single Apple earning conference call?

Stupid Media hype and gripes !

Stupid media hype and gripes that is all this is. But the one guy interviewed on there made a real great point that Apple needs a new spark of inspiration to innovate now, since June of this year all they have done was remodel and repackage.

Apple will continue to do steadily well, everyone buys Apple because they are beautiful and reliable, it is gourmet and people like that they can show off, or get the best possible tool for the trade.

ixodes said:

Apples stock is just fine. Many tend to forget the basic premise of the stock market as a long term investment vehicle. Ups & downs are all part of the territory. It's the name "Apple" that grabs headlines. Combine that with a downward trend & it's obvious why the blogosphere is buzzing.

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I wouldn't say it's "just fine", because the stock is down something like 23% off its peak. That's almost a quarter of the company's value in just a month or so. When is the last time that happened? Looks like over 4 years ago, at the height of the financial crisis (when every company got hit). So this is unfortunately significantly more than just normal ups and downs of the stock market, and it doesn't appear to be over yet either.

words of wisdom for future stock investors

"never try to catch a falling knife"

vpro said:

Stupid media hype and gripes that is all this is. But the one guy interviewed on there made a real great point that Apple needs a new spark of inspiration to innovate now, since June of this year all they have done was remodel and repackage.

Apple will continue to do steadily well, everyone buys Apple because they are beautiful and reliable, it is gourmet and people like that they can show off, or get the best possible tool for the trade.

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Disgusting post

iChrist said:

Retina MBP: Very few people will pay the price of admission for this, assuming most people need more than 128gb of hdd space.

iPhone 5: Sorry, people like a bigger screen. Also, the UI has fallen behind. A screen filled with icons and folders is ugly compared to the nice hardware.

iPad Mini: Worst resolution of all 7" tablets. 2 yr old iPad 2 hardware inside. High price.

This all equals lower sales.

.

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Bigger screen than the iPhone 5? How did people manage back when screens were a tenth that size? How about reading glasses? For me, a phone has to fit in my pocket, and if I need a bigger screen, I'd use a MacBook Pro.

Stock decline is not due to brand new products not selling (they've just been released, no one knows how they will sell) - it's due to people who buy stock not trusting Apple. Their lack of trust is based on their own speculation, just like yours, not actual facts.

JayJayAbels said:

New iPhone 5. New iPad. New iPad Mini. New Mac Mini. New iMacs. New iPods.

This holiday will NOT disappoint and anyone that says it will is mad that they believed the hype and sold.

The stock is near bottoming out. It'll be just fine.

After the first week of December... you'll see.

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As the story states, Foxconn is having trouble delivering iPhones. All iPad 4gs are already back in stock. iPad Mini's are available in stores and are only two weeks out online. This holiday season is a big question mark for Apple. Investors just need to predict the bottom properly.

D-a-a-n said:

Uhm you need to step out of the reality distortion field.

Fact: with an iPad it's easy to send simple mails, browse the web, calendar and maybe to present something. But that's about it.

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Maybe that's all YOU do with it. I check financial statements, pay bills, use as a video interface (sent to the big screen via airplay), play music, read books, play games, book flights, shop, explore maps on Google Earth, etc, etc, etc.

Fact: As a software developer you can consider me a 'professional' but I don't need to purchase thousands of dollars on software. The only thing I need is a comfy keyboard, mouse, big screen and an OS capable of real multitasking with an accessible filesystem. The iPad doesn't have any of this, I'm sorry.

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That's because you're a software developer. Most of the rest of us who AREN'T software developers don't necessarily need all that stuff. Just because a contractor would find a high amp hammer drill necessary doesn't mean I would buy one just in case one day I might need it.

HiRez said:

The bottom line is Apple needs some good news. When is the last time Apple had good news?

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Um, the last quarter's earnings report?

HiRez said:

They are hemorrhaging market share in both phones and tablets and it doesn't look like that's going to stop anytime soon

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Ask Dell and HP how valuable "market share" is.

baryon said:

Stock decline is not due to brand new products not selling (they've just been released, no one knows how they will sell) - it's due to people who buy stock not trusting Apple. Their lack of trust is based on their own speculation, just like yours, not actual facts.

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Well, Quarterly Reports do have a lot to do with it. Apple has always had a great reputation for surpassing sales expectations. More frequently they are not meeting those expectations today. Apple will sell tons of product over the holidays, but that doesn't mean the stock goes up. If those sales (no matter how impressive they are) fall below below expectations, then investors may well get very jumpy.

rhuber said:

Well, Quarterly Reports do have a lot to do with it. Apple has always had a great reputation for surpassing sales expectations. More frequently they are not meeting those expectations today. Apple will sell tons of product over the holidays, but that doesn't mean the stock goes up. If those sales (no matter how impressive they are) fall below below expectations, then investors may well get very jumpy.

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Expectations have to be realistic and also take into account various factors...and Wall Street analysts don't do this.

Failing to meet someones bogus expectations shouldn't tank the stock. It should get that analyst fired for continually missing the mark.

Ryth said:

Expectations have to be realistic and also take into account various factors...and Wall Street analysts don't do this.

Failing to meet someones bogus expectations shouldn't tank the stock. It should get that analyst fired for continually missing the mark.

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Expectations are a real thing. I'm not talking about expectations in the sense that we use them here on a forum, I am talking about actual projections as used by Apple themselves. They are very real and very meaningful on the market.

Everyones looking at this as Apples downfall, that Apples reached its peak. I agree currently Apples not doing so good, but the fact that people don't believe Apples management restructuring will bring positive change surprises me. I don't know about you all but i'm using this time to buy stock. I refuse to believe Apples reached its peak.

jshulman10 said:

Everyones looking at this as Apples downfall, that Apples reached its peak. I agree currently Apples not doing so good, but the fact that people don't believe Apples management restructuring will bring positive change surprises me. I don't know about you all but i'm using this time to buy stock. I refuse to believe Apples reached its peak.

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I don't think anybody in their right mind is predicting a downfall, but yes... many are suggesting it has peaked. That's not a slam or even a horrible thing. Apple will be a strong company for years to come, but they can't be the stock market's darling forever. Nobody ever has. RIMM was once just as beloved. I don't believe Apple will follow their fate, but the reality is that they will be surpassed at one point and we will have a new darling. That's just the nature of the game. The obvious question is when. Wish I knew!

Purant said:

How about a decent desktop computer?



I'll give you the iPhone one. The iPod/iTunes is debatable but you can take that too.

But iPad changed PCs? How?

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Just check out the fall in PC sales since the ipad came out (and the Android Tablets that followed). In fact the only desktop that has increased sales since the debut of the ipad has been Apple's iMac!
ipads and tablets succeeded for the simple reason that for a very large part of the target market laptops/desktops are simply overkill, most people aren't writing major novels, crunching humungous spreadsheets or even stunning presentations they merely want to be connected, ipads and their android equivalents make sound economic sense!

Personally, I'd love to see the stock collapse. Apple buys it back, takes the company private and then this whole retarded notion of basing the company's health on its stock price can be swiped off the table.

I mean honestly, did one poster actually say that changing the look of the UI on iOS devices would have help the stock?

Apple made $156US Billion dollars last year. Over $40US Billion in profits. And they are projected to make $60US Billion in 2013Q1.

Yes, their stock price surely suggests Apple is DOOMED.


Apple's stock is the most manipulated in the market. Anyone who has followed Apple knows this. The stock falling and gaining has nothing to do with how well the company is doing... all it suggests is that someone is trying to get rich quick.

D-a-a-n said:

Billions per year..please. Btw what would a real professional do with an iPad? That's right, nada.

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Do professionals read? Do you think you will be doing a significant amount of reading on paper pulp 10 years from now? Or do you think you will have a lightweight and beautiful tablet that gets the newspaper, books, magazines and web content nearly instantly at very little cost? You will have a tablet as will every person in the modern world.

I work with professionals who make millions of dollars a year, doing billion dollar deals. In any meeting with more than five people there will be at least one iPad in the room. In a big meeting, there will be half a dozen iPads. And I think we have just scratched the surface. Professionals use email constantly and when away from their office they prefer to view those emails on a larger screen. Every professional in the room has a smartphone in their pocket and many have two, by the way. But they are also bringing their iPads. And tablets are just getting started. Professionals can afford tablets now and they are using them. Ten years from now, the middle class in China and India will be able to afford tablets. Who knows, this might only be five years away. Everyone will use tablets and smartphones every day as the cost will get driven down.

By way of background, this site estimates that 1.6 billion cellphones have been sold this year. Don't you think that eventually all cellphones being sold will be smartphones? So don't you expect that eventually the smartphone market alone will be a billion a year?

http://www.worldometers.info/

Gravity always wins on this planet

flopticalcube said:

Not really. The market for products in Apple's price bracket is pretty much at saturation.

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I doubt that is true actually. Growth in the developing world's "middle class" (by that I mean folks that have comparable buying power to US middle class) is adding potential customers that can afford Apple products by the millions each year. Apple competes at the high end, but they can compete on price when necessary. They can make stuff that costs $75 once the technology allows them to do it. They can bring the price of their devices down if that is where they have to go to make sales. The software and ecosystem will still make their product desirable.

300 million PCs were supposedly sold so far this year. I believe that the market for handhelds is much higher than for PCs. A modern family might have one PC, but I would expect soon every member of the family will have a smartphone and it will be common for there to be a few tablets around the house as well. So that is where I get to the possibility that some day soon the smartphone and tablet market will be more than a billion sales every year. If Apple can hold only a 10% share of that market, then they will be exceeding their current sales in the foreseeable future.

HiRez said:

They are hemorrhaging market share in both phones and tablets and it doesn't look like that's going to stop anytime soon

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You do know what "market share" is don't you. These are your share of products SHIPPED in any given market. If 100 companies enter the market and flood it with their products, then yes, a single company's share of the market will drop.

That has nothing to do with how well that company's products are selling. Apple continues to sell more and more products every quarter - granted there are some offs due to the expected release of a new product, but the fact is, they are selling more and more devices.

People who use market share as a means of gauging a company's health are completely ignorant. It says nothing of what consumers are buying. It says nothing of what users are doing. ALL IT SAYS IS WHAT HAS BEEN SHIPPED. And shipped does not equal sales.

Everyone is making great points on technology. Stock prices have very little to do with technology. Dow Jones is down, Nasdaq is down, AAPL is down and so are ton of other stocks, literally A TON. Wake up, go look at the markets, and stop believing the crap that Nightline is advertising.

echo44 said:

words of wisdom for future stock investors

"never try to catch a falling knife"

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+1

baryon said:

Bigger screen than the iPhone 5? How did people manage back when screens were a tenth that size? How about reading glasses? For me, a phone has to fit in my pocket, and if I need a bigger screen, I'd use a MacBook Pro.

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I want a 4.5"-4.8" screen on my iPhone.
4" is just too small.

As long as the screen is a TRUE 16:9 size, Apple needs to make the screen size bigger for iPhone 6.

!!!



What're Samsung and other going to do if Apple doesn't come out with new products?? They'll have nothing "emulate" or "improve"!!

I sure hope Apple can make some "incremental upgrades"–because the other companies won't skimp, and will therefore produce vastly superior products.

It seemed pretty darn obvious that it wasn't heading any higher than $700.

I liquidated my entire position at $693. One of the best investing decisions I've made in awhile.

Well the new iMac is said to have a 75% less glossy screen