6 reasons Apple stock is down t

Discussion in 'Apple, Inc and Tech Industry' started by Rogifan, Jan 1, 2016.

  1. Rogifan macrumors P6

    Rogifan

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    #1
    Spot on list from Philip Elmer Dewitt over at Fortune (god I hate their website):

    http://fortune.com/2016/01/01/apple-stock-2015-whimper/?xid=yahoo_fortune
    • Heavy option activity
    • Journalism’s broken business model
    • CNBC
    • Ignorance
    • Wall Street myopia
    • Perception
    PED brings up some good points. Microsoft currently has a PE of 37, Apple's is 11. Wall Street really believes Microsoft has 3x the prospects of Apple? Based on what, exactly? A race to the bottom cloud business where Amazon can undercut everyone because they don't need to make a profit? Also, all the worries and constant fretting over iPhone. Do people fret over Starbucks because all they do is sell coffee or Ford because all they do is sell cars? Some car companies have a higher PE than Apple. That seems nuts to me. Does Wall Street really think in 2016 everyone is going to stop buying smartphones? Seriously?
     
  2. OLDCODGER macrumors 6502a

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    #2
    If the Wall Street wallas read MacRumors comments, and took them to heart, they would all jump off tall buildings.
     
  3. Fancuku macrumors 6502a

    Fancuku

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    #3
    It is not nuts at all. Cars are a necessity in our everyday life while a smartphone is not.
     
  4. Rogifan thread starter macrumors P6

    Rogifan

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    #4
    Really? I don't think a car is a neccessity for everybody, especially people living in large urban areas with public transport and services like Uber. Honestly what is a necessity for human beings besides food and water?
     
  5. OLDCODGER macrumors 6502a

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    #5
    Er ..... ummmm .... ah ... continuity?
     
  6. MICHAELSD macrumors 68040

    MICHAELSD

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    #6
    Apple stock is on a post-Christmas sale. Buy it up :).
     
  7. T'hain Esh Kelch macrumors 601

    T'hain Esh Kelch

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  8. navaira macrumors 68040

    navaira

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    #8
    I live in Amsterdam, where hardly anybody has a car. Out of all people I know three own cars. (I know more than three people.) On the other hand, absolutely everybody owns a (smart)phone, some people more than one.

    Were you kidding perhaps? If yes, sorry I didn't get it.

    I think that the reason Apple's stock is constantly undervalued is the opinion that "this year they definitely reached a peak". Then, when a year later a new peak is reached, "well THIS year they DEFINITELY reached a peak". Repeat, so far, ad nauseum.
     
  9. weatherwax macrumors member

    weatherwax

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  10. laurim, Jan 5, 2016
    Last edited: Jan 5, 2016

    laurim macrumors 68000

    laurim

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    #10
    I bought 20 shares at $105 ;)

    They weren't kidding. They were just seeing things from an American point of view. Unless you live and work in a city, you NEED a car here. There's very little public transport compared to Europe and very few areas outside old cities are built with a village mentality (where people can work/shop/etc. within walking distance of their house.)

    Here's a fun page that shows area comparisons between the US and Europe. Drag the red dot to compare your country with a state in the US. The Netherlands is maybe 1/3 the size of Minnesota, so yeah, I need a car to get around and you don't.

    http://goeurope.about.com/od/europeanmaps/l/bl-country-size-comparison-map.htm
     
  11. MICHAELSD macrumors 68040

    MICHAELSD

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    #11
    Not sure how smart it is relative to other stocks the money could've went in, but I bought many more shares than 20 at prices between $102.50 (luckily) to $110 in the past week or so. I feel secure with my money in APPL, to say the least, even if it won't yield the largest returns.
     
  12. radus macrumors 6502

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    #12
    until late 2013 I spent between 15.000 - 20.000 per year on Apple Products for me and the company
    now it is Zero --- because there are better Products out there (Server, PC's, Laptops-Surface, Phones)
    may be I am not alone, we will wait and see
     
  13. Blaze4G macrumors 6502a

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    #13
    1. The bulk of Microsoft profit is from Commercial Licensing. This seems to be pretty safe for the future. They barely make any profits on their Cloud business so if it fails it would not be detrimental.

    2. Starbucks - people will continue to drink coffee (it is like cigarettes). The market won't become saturated with coffee, there will always be a high and constant demand.

    3. Car companies - they sell multiple models and profits are usually distributed among most of the models.

    Over 55% of Apple revenue comes from the iPhone. Each year they have to change it to persuade consumers to purchase it. All it takes is one fail iPhone release for their stock to crash. Unlike Apple, Starbucks keeps the brew / mix of coffee exactly the same and people will continue to love it. If Apple tried that they would already be bankrupt. If a car company releases a bad model, they can rely on their other models to keep the ship above water.
     
  14. Fancuku macrumors 6502a

    Fancuku

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  15. tdale macrumors 65816

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    #15
    Good points. Apple has its eggs in one basket. The iPhone like many smartphones can now only be incremental, so its losing the aura, as the aura played out in the past. The incidence of bugs and hardware issues is getting to be a feature. The 6 was a game changer, great sales, but it wasn't. many sales came from users going back to Apple as they finally have a proper sized phone, and Apple users who interrupted their upgrade path to grab one. Im sure the 6S series are down, a lot. The 7 will be thinner and lighter, and bendgate will probably become a reality rather than an artificially created news frenzy. If it loses the audio port, expect revolt. There isn't really a lot going for an iPhone now, its been done. Eggs in one basket allows you to excel if that egg is great, but when its just ok and fine, thats a while lot of risk. Computer sakes are steady, iPads are down, the Watch and Apple TV are mere drops. While there is inherently nothing wrong, the upsides don't now exist IMHO
     
  16. throAU macrumors 601

    throAU

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    #16
    Yeah but it is also a high cost industry and no one is making much money in it.

    It's also extremely vulnerable to getting its throat cut from the low end creeping up by the Chinese manufacturers just like the established US and European companies did when the Japanese figured their stuff out.

    Also: i have friends who have never had a car, don't even have their license.

    My car, i drive a couple of times a month because i ride a motorcycle... could quite easily do without the car entirely.
     
  17. maxsix Suspended

    maxsix

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    #17
    To the average mainstream consumer smartphones were complicated yet exciting and very futuristic when first introduced in 2007. Now many years later the newness has worn off, they're everywhere. Anyone with an interest already has one. Most have had a few, there's no excitement or reason to spend hundreds upgrading each year as Apple wants us to do. The average iPhone owner cannot tell the difference between the 6 and 6S models by looking at them, as many have said here before specs don't matter, therefore it's easy to ignore the newest model. Soft sales is the result.
     
  18. Fancuku macrumors 6502a

    Fancuku

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    #18
    Oh yeah? Why don't you ask the rest of the population that doesn't live in a city? Ask them and see what they say which one can they do without.
     
  19. tdale macrumors 65816

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    #19
    Its down over 20%, that's officially a crash figure. In short time. With nothing going wrong. It might well be a drop in faith of the future. Apple is fine, its the same 2 months ago as it is now, but maybe more and more can't see where the next sales upside comes from.
     
  20. MICHAELSD macrumors 68040

    MICHAELSD

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    #20
    Well, this is just great. I made a significant investment a few days ago, and now the stock is hovering at $96-$97. The stress of the market makes me want to get out of stocks altogether :mad:.

    I do believe Apple will amaze this year but Apple was off its game in 2015. All the new products really did feel like they were in beta.

    We also have iPhone 6c coming to make up for the budget market, and in the future I believe Apple will have more budget smartphones if it loses marketshare.
     
  21. Rogifan thread starter macrumors P6

    Rogifan

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    #21
    So yesterday Jim Cramer was on CNBC saying Apple should do a $199 fitness band with Nike. Of course just a week ago he was saying Apple should acquire Fitbit and Harmon and Verifone. It's crazy the way all these clowns are in a panic looking for new revenue streams for Apple. I'm glad none of them actually run companies. It's bad enough they're out there giving financial advice to people.
     
  22. maflynn Moderator

    maflynn

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    #22
    I don't ever listen to them, most of time it seems they just offer nonsense and say stuff like that to justify their existence on tv.
     
  23. nightcap965 macrumors 6502a

    nightcap965

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    #23
    Stocks go down as well as up. That's how the market works. Volatility is the source of future returns.
     
  24. maflynn Moderator

    maflynn

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    #24
    What's that saying again. Buy on the rumor, sell on the fact. I think apple's fluctuations can be attributed to that :)
     
  25. Bonte macrumors 6502a

    Bonte

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    #25
    This is getting ridiculous, is the stock down because Apple is Eyeing Time Warner?

    It looks to me like Apple is artificially keeping the stock low to buy it up and to lure developers and engineers in with cheap stock that has a high potential for growth. Apple made it a dividend stock so all it needs to do is raise the dividend as a controlled way to manage its price.
     

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