Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth

Amacfa said:
lol how many shares do you have, 4? learn to truly invest at least 25k minimum
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Ummm, So where exactly did you pull that number from? Of course everyone would love to be able to throw around big chunks of cash like that but I would not say there is some set minimum. Besides, currently throwing 25k at APPL stock for the average investor would be a risky play to say the least. That window may have closed, and I sure as hell would not put 25k on chance it’s still open.
 
Inflated market dives and erases a year of "earnings". Nothing to see here, all is evident.

Apple has risen higher than worth due to frenzy and expectation, then minor problems and lack of innovative product caused the stocks to reverse a little. Apple made a wave of success on the iPhone/iPad, but the star is dimming a little due to an end to innovation. Apple will have to create truly amazing products year after year or spread out product to fill lower ends of of the market in order to keep such growth longer.
 
sseaton1971 said:
Not to be a Debbie Downer, but what is so innovative about putting a higher resolution display on a MacBook Pro? I love my cMBP, MBA, iMac, iPad 2, and various iPods, and I am not an Apple-basher, but I really don't see where Apple is really innovating in the Mac area. Certainly there have been improvements, but not real innovation. (Tim... Let's see this amazing update to the Mac Pro that you promised!) The thing that concerns me most for the Mac is OS X. I really don't see much innovation there at all. I am hoping that with Tim's recent leadership shakeup, we will start seeing some amazing things in the Mac and OS X areas again.
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It's the only laptop with a resolution that high, it's almost as thin as the Macbook Air, It has all the power of a regular Macbook Pro, it has asymmetrical fans that are pretty quiet, it has better speakers than the normal Macbook Pro despite it's thinner status, it manages to not blow up despite the smaller enclosure and specs, oh and it runs on SSD flash storage. It's really hard NOT to see the innovation.
 
cmChimera said:
It's the only laptop with a resolution that high, it's almost as thin as the Macbook Air, It has all the power of a regular Macbook Pro, it has asymmetrical fans that are pretty quiet, it has better speakers than the normal Macbook Pro despite it's thinner status, it manages to not blow up despite the smaller enclosure and specs, oh and it runs on SSD flash storage. It's really hard NOT to see the innovation.
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I agree. The issue here is that many people expect a completely new product or even product line each year and only call something like that "innovation". If people would know the proper definition of innovation than we wouldn't have all these arguments.
 
peterdevries said:
If people would know the proper definition of innovation than we wouldn't have all these arguments.
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samsung fans equate anything that samsung does to be innovation.

Apple changes the way it's devices charge (lightning)? Something to ridicule. Samsung changes the way it's devices charge (Galaxy S4)? Innovation.

It's laughable.
 
Why do people get so worked up?

U ever think that at $700 a share the stock was over inflated and now it's adjusting for real world performance?

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peterdevries said:
I agree. The issue here is that many people expect a completely new product or even product line each year and only call something like that "innovation". If people would know the proper definition of innovation than we wouldn't have all these arguments.
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Okay cool but will u consider that the apple stock was also over valued?

It's not saying apple isn't doing well there are just unreal expectations.

Innovation doesn't equal a $550+ share if u aren't showing continuous profit & growth
 
bbeagle said:
samsung fans equate anything that samsung does to be innovation.

Apple changes the way it's devices charge (lightning)? Something to ridicule. Samsung changes the way it's devices charge (Galaxy S4)? Innovation.

It's laughable.
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Amen to that.
 
cmChimera said:
It's the only laptop with a resolution that high, it's almost as thin as the Macbook Air, It has all the power of a regular Macbook Pro, it has asymmetrical fans that are pretty quiet, it has better speakers than the normal Macbook Pro despite it's thinner status, it manages to not blow up despite the smaller enclosure and specs, oh and it runs on SSD flash storage. It's really hard NOT to see the innovation.
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Who is asking for lighter and thinner ?

How about a more innovative os ?
 
No Road Map, low stock price: simple...

The problem for Apple is that it doesn't produce road maps telling partners or customers where they are going in the next few years. No other tech company does this. No one is as secretive as Apple.

I think Steve Jobs was the guarantor of this philosophy for investors. They started to believe in "him" and not "Apple". Then he died. And now they dont believe again.

Without a road map Apple shares will always be grossly under or overvalued. They will never be reflective of the current / future position of the company because there is not enough information around to form that opinion. And there isn't someone with enough clout (yet) at Apple to make anyone "believe without data" anymore.
 
Smartass said:
Who cares what others invented, company like apple cant come out with a statement "well, we havent really invented anything BUT so didn't the others"
Apple has set some "standards" in the last years of Steve Jobs regarding inovations and new products. Since Tim Cook's been CEO the only new thing that Apple has invented is "worldwide patents lawsuit war" and nothing more. Its kinda sad when you think about it.
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Have you ever invented anything in your life? "Inventions" don't come out every 2 years. Game changers don't come out every 3 years. This is why it is called R&D. THis is why it costs billions. It takes time and lots and lots of hard work. If you thought Tim Cook would come up with something as game changing as the iPhone in 2 years then you are delusional. Heck, developing a GAME for the App Store could take a year.
 
bbeagle said:
samsung fans equate anything that samsung does to be innovation.

Apple changes the way it's devices charge (lightning)? Something to ridicule. Samsung changes the way it's devices charge (Galaxy S4)? Innovation.

It's laughable.
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Google adds wireless charging to the Nexus 4, it's innovative even if you need a third party device to charge with b/c for some reason the charging orb is still unreleased.
 
gnasher729 said:
You are assuming that Apple gives a damn about what Wall Street wants. There has been evidence again and again and again that Apple doesn't care about Wall Street.
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That is your opinion but go and ask Tim Cook if he will care if Apple prices were back to $7 instead of $700 and you will get your answer. Apple is listed on Wall Street and will play by the same rules that every other stock plays. Share prices are decided by data and perception. For Apple fans it may be hard to digest that people give damn about Apple's price but for investors it is their hard earned money and they will make sure it is not going down the drain, you like it or not - market will find its course.
 
pipa said:
This stock is a steal at this price. If/when apple attacks the TV market it is going to take that company into another stratosphere. Just imagine selling millions if tv's at $2,000 to $3,000 a set. I know ill be a day one buyer. And trust me when Steve was alive he said that he cracked the tv and knows what we need. Just remember in 07 when he cracked the cell phone what happened. With apples ecosystem in place and icloud a TV is the last piece of the puzzle and the possibilities of what can be done is incredible. FaceTime, iMessage,apps made for the set, safari. It's going to be amazing.
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AppleTV sure has been a success... why would an actual Apple TV do any better? I'm all for being optimistic but be a little realistic lol
 
Radio said:
Okay cool but will u consider that the apple stock was also over valued?

It's not saying apple isn't doing well there are just unreal expectations.

Innovation doesn't equal a $550+ share if u aren't showing continuous profit & growth
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I personally think the stock isn't and wasn't overvalued. Not based on EPS because the fact that Amazon's is so high indicates that this is just a measure that isn't reliable. I'm thinking market expansion outside the USA. Apple is aggressively expanding in Europe and Asia and doing very well especially in the latter. Although growth is slowing down, it is still very high in that region. The market for high-end consumer products is really opening up in China and also other Asian countries. In addition Apple is still expanding the iTunes and App Store scope, and although this is less profitablle than hardware, it is making an impact.

Currently Apple is still very reliant on the US and this is logical, but with the establishment of Asia as a separate operating region as was announced yesterday, Apple is working hard to become less dependent on the US economy and slow down of consumer spending over there.

I read today that the share price of Apple is now two-thirds covered by cash only. The rest is assets, goodwill etc. If Aple keeps developing like this, even with decreased margins and a somewhat slower growth, the stock is a steal. The big question is whether they will be able to get new and innovative products on the market that "old" customers want.

It's no problem selling an MBA to a first time customer. What Apple needs to do is make new products that make these people buy again and again. I think that that's where the big danger is. I was personally tempted to keep my iPhone 4 for another iteration. In the end I didn't but I can see many people having the same thoughts.

tl;dr: there is actually no way of telling for sure. I think its undervalued.
 
Radio said:
Why do people get so worked up?

U ever think that at $700 a share the stock was over inflated and now it's adjusting for real world performance?


Okay cool but will u consider that the apple stock was also over valued?

It's not saying apple isn't doing well there are just unreal expectations.

Innovation doesn't equal a $550+ share if u aren't showing continuous profit & growth
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Yes, it was overvalued at $700, but I think it is undervalued at $460. Even if it shows no growth, a P/E of 10.5 is fairly conservative.

That said, I think they need to start deploying that cash to good use. The last 3 quarters they have "missed" and in part blamed supply issues. Tim Cook is supposedly a supply chain genius, but they would have sold a lot more iMacs, iPad minis, and iPhones if they had them available earlier in the quarter. Maybe he needs a full time COO who can handle those matters and let him focus on being CEO. Maybe it is also time to bring manufacturing back "in house" by acquiring (or making large investments in) some component makers like Sharp or LG.

We've seen the dangers in Apple becoming overly dependent upon one supplier. Making some strategic investments would help mitigate that.

For that matter, maybe Apple should do something bold and acquire Samsung's display unit as part of a global settlement of the legal issues. The general consensus is that the Samsung displays are better than LG, and unlike Sharp they don't seem to struggle as much with yield issues. Displays have become almost secondary to Samsung, so they might be interested in a deal.
 
MacRumors said:
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After reporting record-breaking quarterly revenue and profit earlier today, Apple's stock has taken a 10% tumble in after hours trading. Apple posted a $13.1 billion profit for the quarter this year compared to a $13.06 billion profit in the same quarter of last year, yielding flat growth year over year.

The flat growth, as pointed out by Apple, is largely because manufacturing costs have risen, even as revenue has risen 18%. The New York Times notes that analysts were worried that about Apple's profit margins, even after Apple warned that a significant overhaul of its product line would mean high manufacturing costs in the early lives of the products.Business Insider notes that even though Apple's holiday quarter in 2012 had a week less than it did in 2011 that sales growth still wouldn't be at the point that it was.

Apple's 10% stock decline gives it a current market cap of $463.49 billion and a loss of nearly $50 billion in market capitalization from worried investors. Despite analysts' and investors' worries of year-over-year growth, The Wall Street Journal's Tom Gara notes that Apple's losses in market cap today were roughly equal the value of two Research in Motions and two Nokias.

Article Link: Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth
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AAPL is tanking right now. See margins dont me everything if you dont have grow.
 

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67bmer said:
Goodbye AAPL!

its just amazing how fast things have changed. In three months wall st. has gone from amazing to history.

You could not even walk into a store and buy an iPhone 5 two months ago!

Now its a 1 trick pony that is all but history. Macs -growth! iPods -growth. iPad (the product that changed computing) -growth. iPhone -barely keeping up with android.

I just hope I can get out while its still > $450.... One analyst on CNBC Fast Money predicted $425 last year. Now he is saying its inevitable before the end of the quarter. Maybe even this week or next!!!

The street has turned. Stocks are stocks and companies are companies. The two are independent. AAPL is without question now a broken stock but still a great company.

BTW, according to my calculations, $145.74/share in cash. So at $300 it should be like in 2009 when you could buy at $90 with nearly $50 in cash. But there is no growth on the horizon like there was in 2009... :-(

3-D printing is where its at now...
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LOL failpost much? The iPhone sold more year over year, and the iPod sold less...
 
gnasher729 said:
You are assuming that Apple gives a damn about what Wall Street wants. There has been evidence again and again and again that Apple doesn't care about Wall Street.
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Not true. Maybe they didn't care in the past, but they do now. Otherwise Tim Cook wouldn't have addressed the supply cut "rumors" that caused the stock to dive recently.

And take note, Cook was very careful in what he said to address those "rumors". Notice that he did not deny them, nor did he assure that these supply cuts were not a negative for Apple. He could have easily done so, but he did not.
 
KPOM said:
That said, I think they need to start deploying that cash to good use. The last 3 quarters they have "missed" and in part blamed supply issues. Tim Cook is supposedly a supply chain genius, but they would have sold a lot more iMacs, iPad minis, and iPhones if they had them available earlier in the quarter. Maybe he needs a full time COO who can handle those matters and let him focus on being CEO. Maybe it is also time to bring manufacturing back "in house" by acquiring (or making large investments in) some component makers like Sharp or LG.
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Jeff Williams is SVP of Operations. Is he performing the COO function? I agree they need to do something with the cash their hoarding. What are they saving this $137B for?
 
wilhelmer said:
Back in 2006:
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Very few people spend $700-800 on an iPhone. History lesson; the iPhone did not become popular until it became subsidized. It still would be a niche market if they continued selling them at $800. As for a TV, no one in their right mind is going spend 2-3K on a TV when they already own one. Do yourself a favor, look up the average time between TV set purchases. a TV is not a disposable item unlike a small iphone device you paid $200 on. Even if it reads people's minds and has a whole dedicated App Store will people spend that much on a TV. It'll have to be less than 1K or it's DOA.

Plus, when both the iPhone, iPod, and iPad came out, they entered into non-saturated markets. There was no tablet or mp3 market to speak of and the smartphone market was still in its infancy. As I write this now, the TV market is saturated. Everyone already owns one and they're not going to put their $1,700 TV that they bought 2 years ago on the curb.
 
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