Its almost impossible to think of Cook going anywhere. Given how much competition there is he has chosen a sector that over time will take over all of music. They did it once with iTunes (for the most part) and now are doing it again. If they just service apple music as good or slightly better than spotify i see them buying spotify out and ruling the music world once again. Apple isn't going anywhere they are the KO of the electronic world.
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Apple Shares Drop Below $100 Amid Wider Stock Market Downturn [Updated]
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Ha... No, I don't day trade anymore... that was a lifetime ago when it was fun during the internet bubble. According to some here, I should short Apple as it is going to $30 lol
Don't under estimate the TC email to Jim Cramer. It triggered a huge rally for AAPL.
Perhaps, but also algorithms see a buying opportunity for an undervalued stock, make huge trades, make a profit, get out. Short term trading is gambling, I promise you this.
swingerofbirch
macrumors 68040
Well, they definitely have inertia but I think it's less tied to music and more to being the first player in this new smartphone era. Apple can be successful even if the iTunes Store or Apple Music isn't (and I don't think Apple Music will be successful). And even if all their products were to suddenly flop, they have tons of cash. I do not think Apple will fail at all. Rather, I think Apple's customers are a victim of Apple's success. Apple is doing so well financially that it won't have to respond to core customer demands and innovate for the people who really liked the Apple of the early 2000s. To me, their greatest success is attaching themselves to an already existing genius business strategy (training customers to buy new cell phones every two years) and then making more compelling (and expensive) phones. They basically got on an existing wave with a much better surfboard. Apple today seems like a company focused on managing its success. It doesn't seem as nimble or as quality-focused. There is the Apple Watch, and while opinions on that vary, I personally don't see the appeal. Maybe it's a long-game project, but to me the FitBit is more what I would consider an Apple-like product. It's more like the iPod to me than the Apple Watch is. The Apple Watch to me seems like a Jonny Ive vanity project.
Since the S&P is an average it dragged Apple lower. Use this opportunity to dollar cost average by building your position.
Just curious, why did you? Did you have any indication of what was to come on the next business day, or was that timing purely coincidental, or pure luck perhaps?
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i know there is a lot of love for fitbit but honestly as the AW gets more refined and other companies "catch up" fitbit will fall. Their sexiest product (surge) is appalling to look at and the charges are looking cheap IMO. I think people are underestimating the watch. Innovation is pretty stagnant but i do believe that given the amount of financials they have reserved and the innovative people they have hired we will see big things in the next 10-20 years. Im buying in when it hits mid to low 90s.
Thanks for the personal attack, very constructive.
But yes, like I said in my posts that you have been checking through, I care very little what people think of the decisions I make.
I am going to state again; I think there is a major correction coming to not just the DOW but world markets of a huge scale. Although I think Apple is doing great, and the U.S. Economy is not too bad either (the banks are well capitalized and are in much better shape than 7 years ago) a downturn/collapse in China is going to have wide ranging effects that we are only just beginning to see. This is going to get very nasty indeed.
There is a completely absence of positive information coming out of anywhere really, I am very pessimistic for the next few years.
I put my money where my mouth is and took my money off the table.
If you think the fact the Dow dropped 1000 points was just a minor dip and caused by 'jitters' and that this is a great buying opportunity, then be my guest, dump all your money in stocks and make a fortune when the market recovers.
We live in an increasingly inter connected world and nobody (not even Apple) will be insulated from conditions in China.
Best of luck to all, and of you made money trading yesterday I commend you!
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Someone from CNBC emailed Tim Cook and he gave a three paragraph response. I fail to see how that proves all he's focused on is the stock. It's not like he published a letter on Apple.com called 'Thoughts on Apple's Stock Price'. Oh and the stock is down over 20% the past three months. That's a drop in market cap of over $146B (roughly the market cap of IBM). I wouldn't call that a minor blip.
I guess Apple is overpriced and doomed until Scott Forstall comes back on his magic green felt carpet to save the day.
If you are so sure you should sell short. That would be putting your money where your mouth is.
You beat me to it. There were a couple of quarters where the U.S. reported over 5% growth and the Fed should have responded with small, incremental increases in interest rates. This would have slowed down growth which is overheated relative to real economic health in the U.S. As you've pointed out, the main tool the Fed has in their tool chest is to lower interest rates, but that isn't an option this round, now is it? It seems the Fed is capable of responding to a crises but not removing their economic controls when the crisis is averted.
The other issue is that China has been cooking their books for years and now that's become apparent. For instance, China announced they were the 2nd largest economy in the world a few years ago, and now you have to wonder if that's really true. On a positive note, if their economy is smaller then reported, it may lower the economic impact of their crash. The concern is that the Chinese government could become unstable and collapse their manufacturing which the U.S. depends on for affordable products. If that happens it could very well set off deflation in the U.S., Europe, and Canada.
The other concern is, mainly due to interest rates kept too low by the Fed, housing has become overvalued yet again. In fact, housing values are now close to where they were in 2005 in many major cities. If we have home owners who find themselves suddenly underwater or unemployed, we could get another batch of foreclosures. I don't think Americans could stand another major housing collapse, it would cause doubt in the value of housing as an investment (actually housing shouldn't really be viewed as an investment by the average owner, but that's a whole other can of worms), and also bring fundamental doubt to the underpinnings of the economy.
The final and perhaps biggest concern is the amount of money held by large corporations. The fact is large corporations provide the economy with extremely efficient employees and little need for additional employment. Employment is mainly driven by small businesses which also are the main driver of innovation. But large corporations serve a major purpose in the economy, investments in infrastructure and technology, and they simply haven't invested enough for the past 10 or so years.
Put another way, corporations have grown wealth (mainly on paper) but haven't shared that wealth with the economy as a whole. There's a term for this: a misallocation of resources. Those responsible for growing the economy are not being rewarded adequately, as most of the profits in the economy find their way to wealthy corporations. This is unsustainable and the most serious aspect of the economy we face today. Ironically, since that wealth is mainly on paper, it a crash could cause the value of that corporate wealth to shrink significantly. That's what happens when you're a tightwad and won't invest in future, long term growth. There's just too much focus on quarterly profits, and not enough on long term investment.
I've been watching the economy in silence and I've found it extremely hard to read since around 2011 or so. The housing crash of 2008 was extremely obvious. I saw it coming in late 2003. But this time there were so many contradictions. The economy wasn't behaving in a way I'd expect. It all goes down to how unstable things have become. Between the devaluing of currency to increase imports, to lowering interest rates to allow access to cheap money, housing that has grown to astronomical levels (again) without expected growth in building of new units, extremely high rent, etc. It's a mess. Things are beginning to make a bit more sense.
Do you actually own the Watch? I do and I love it and use it every day. And I know ias a gen 1 product it's only going to get better. If it is a Jony Ive vanity project I hope we get more of them.
Really? You don't think selling my entire portfolio of stocks (not just Apple, everything I own) is putting my money where my mouth is?
You can do what you think is best which your money, and I will do will do what is best with mine.
I have stated many times on this thread what I did, the vast majority of people haven't.
Look, if you think I am wrong and APPL is going up, then buy more, but I am going to do what I believe is best for me.
Edit: I should add, that since selling at the open last Friday I have missed out on a large drop in most of the stocks I had previously owned, all have dropped, some larger than others. APPL has recovered, but I think it is on the way down, that's why I sold. I am completely happy with my decisions and judgment so far. Time will tell if I am right, but either way I have no regrets.
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swingerofbirch
macrumors 68040
The Watch could be something. And Apple of all companies has the time and money to pour into it. I just know that for me the Fitbit is super simple, just like the first iPod. Everyone in my family has one just like everyone in my family has had iPods, whereas I've yet to meet a person with an Apple Watch. At first I thought the Apple Watch might get big if it ever evolved to not need an iPhone to make phone calls or send messages (built in cellular connection), but the problem is that people will still want a bigger display for those things.
The same is true for music these days. I and everyone I know uses Spotify. For me it's just simpler than Apple's offerings.
Neither of those is a death knell for Apple, and in fact I think it would be better if Apple focused on its core competencies like OS X and making it better and better. Apple wasn't a company that used to have to control every market segment. The original iTunes worked with the Rio. I think they could have let iTunes go into the sunset over time rather than try with Apple Music and just recognize that Spotify is what makes sense now. The iTunes Store was in service of the iPod, which Apple isn't even really trying to sell anymore. The iPhone is a huge reason why services like Spotify have made iTunes less relevant. When you have a device that can stream anything, it makes iTunes less relevant. In the same way, it seems like Apple became afraid of wristband devices connecting to the iPhone and felt it had to control that segment as well.
I think there's nothing wrong with and it's better to have a super solid platform that people love to use with their third party apps (Spotify) and devices (Fitbit). In fact, one of the things I most appreciate about iOS is that even though Spotify is a third-party app I can control it from the Control Center to pause, skip, or go directly to the Spotify app. I'd love even more if I could control the app with Siri. I think they've ignored OS X too much, though. It's been buggier the last few years. Apple is more like Microsoft used to be in that they want to be in every segment just to be in it. Microsoft had the money to wait their competitors out. They could make a tablet even if it failed. Apple is in that position now. They can make a watch even if it fails. In 1997 Apple couldn't make a product that was going to fail. They had to work with other companies and make deals (Microsoft) and they had to focus on their core competency, which was their OS. I think that they have so much room to fail now works against them.
I was watching my stocks this morning and they were all down except for AAPL, which was actually up by a pretty decent amount, that all changed by closing time.
It's pretty amazing to have watched Apple stock go from $135 to $103 in less than a few weeks. Not sure if I should buy more, keep what I have or start buying from some other companies in which I couldn't afford until now. Ha.