Apple must grow every year or its stock will crash?

Discussion in 'iPhone' started by thermal, Jan 28, 2014.

  1. thermal macrumors regular

    Aug 3, 2009
    Vancouver, Canada
    I would just like some clarification:

    Apple must grow indefinitely, otherwise it's stock value will go down? Does this sum it up?

    I wonder if it's possible for Apple to cease trading on the stock market...
  2. powerstrokin macrumors 6502a


    May 18, 2013
    That pretty much sums it up for every corporation everywhere.

    That's the game. Some companies have survived for a very long time IE: IBM but eventually, they'll all fall.

    What's your point, OP?
  3. BaldiMac macrumors 604


    Jan 24, 2008
    No. Stock price isn't tied to any single metric. Otherwise investing would be easy. :D
  4. hansonjohn590 macrumors 6502

    Sep 14, 2013
    This. Expectations are set so high they even when you do well, investors always think you should have done better. Not just Apple - this applies everywhere.
  5. zipa macrumors 65816

    Feb 19, 2010
    Well, no. They could start paying huge dividends instead, that would keep the investors happy as well.
  6. Appl3FTW macrumors 603


    Nov 15, 2012
  7. CEmajr macrumors 601

    Dec 18, 2012
    Charlotte, NC
    That's the way it works for all companies. Investors want what they invested to grow.

    So a company who posts 20% YOY growth is more attractive to invest in over even if their profits are nil compared to Apple who has massive profits but flat growth.

    Unless of course Apple increases their dividend payments.

    Think about it like a bank account. Would you rather put $100,000 into a bank that's the biggest bank in the world paying a rate of 1.5% or a smaller bank that's paying out at 5%?
  8. BaldiMac macrumors 604


    Jan 24, 2008
    You are confusing two types of growth. Stock growth and earnings growth.


    I would not suggest that anyone think about a stock investment like a bank account. :)

    Pretty much anyone that invested in Apple anytime other than 2012 is doing pretty darn good with their investment.
  9. powerstrokin macrumors 6502a


    May 18, 2013
    While valid, that's not really what I was getting at.

    I'm talking about continued growth in general.

    You can only grow so much before you reach a peak and begin to fall. Think about the bigger picture.

    The consumerism model is flawed. Hence the level of market manipulation- they are trying to keep this sinking giant afloat, globally.

    We're on the Titanic and they are telling us that it's unsinkable... we know how well that panned out the last time.

    I'm not trying to be a fear monger, just telling it like it is.
  10. carjakester macrumors 68020


    Oct 21, 2013
    if i had a couple g's invested in apple and didn't see improvement i would worry, thus maybe sell my shares.
  11. nox5 macrumors 6502

    Oct 16, 2013
    one year they might grow and another they may miss expectations so the stock price will fluctuate not necessarily crash. At lower prices it may be more attractive and it may bounce back, at too high prices investors can sell stocks.
  12. ineel macrumors regular

    Jul 8, 2010

    Generally a stock's price reflects the company's future earnings potential. This can be anywhere from a quarter to years down the road. If an investor knows that the company is growing and will continue to grow, the stock is more attractive to them and thus the price of it goes up. This is what happened when apple's shares went up to the $700s a while back as investors predicted that apple would continue to grow at or above the pace it was growing. We know no that apple is facing some pressure by the android OS and recent QE reports show slowed growth. When slowed/no growth occurs, a stock price correction occurs as investors try and flee as they now know the stock is over valued. Investors sell their shares, prices go down. More investors get scared and try and sell and then you end up with apples shares bottoming in the upper $300s last year. Knowing apple is a well managed company by Tim Cook, a smart investor would've bought stock during that panic as apple stock tumbled.
  13. ucfgrad93 macrumors P6


    Aug 17, 2007
    Agreed. There are many things that go into pricing a company's stock.
  14. C DM macrumors Sandy Bridge

    Oct 17, 2011
    Like majority of complete randomness of the whole stock market that is based on random opinions of (many) different people.
  15. lordofthereef macrumors G5


    Nov 29, 2011
    Boston, MA

    Stocks crashing is not the same as stocks going down.

    I point this out because the title of the thread states their stocks crash, but the body states they are going down. Maybe this was a 'clever' attempt to get more views?
  16. zipa macrumors 65816

    Feb 19, 2010

    I doubt that there are many, if anyone just picking stocks to buy and sell at random. The stock market is simply a weighted average of all the opinions of all the players in the market. It can fluctuate wildly in the short term, but the system is self correcting, so the bumps and dips will cancel each other out in the long term.

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