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

[EbookReader]

If Google/LG based the specs for the Optimus G Pro that was launched in Japan for the Nexus 5
especially at the same price as Nexux 4 ($299/$349 no-contract unlocked phones)

-quad-core / 1.7GHZ
-2GB RAM
-5inch 1080p
-3,000 mAh
-16/32GB storage
-3/13megapixel cameras
-LTE
-$299/$349 unlocked

it would put even more pressure on Apple.


And if T-Mobile no subsidy model is successful and is copied by Verizon and AT&T, that would put even more pressure on the stock


As for the Nexus 4, over 752,000 have been produced and it has been sold out for almost 2 months now. Demand was 10 times more than Google expected for UK and Germany.

 

[PittAir]

Extremely strong fundamentals. All this is is a bunch of hedge fund guys trying to rattle the mutual fund guys into selling into their Apple puts so they can buy the stock back and make a couple million in a few days. All noise by mostly media morons who can't tell a call from a put, and want a story that sells clicks and eyeballs (ahhh, ahhh, Apple is falling, ahhh). Don't you think the smart guys have these idiots wrapped around their fingers? Buy the damn stock, and hold it for a few years. Returns (with dividends, no less, coming) should be 10% or better yearly. Big yawn.

 

[Myiphone7]

None of those companies was trading at 9 times earnings in 2000.

It's 9 bc in the future it'll be 14 when the earnings stink

 

[jlasoon]

That's funny, I also lost almost exactly 10X $2370. Then again, I bought a lot of my shares at <$5 (think 2002-2003). So... easy come, easy go, I guess!

Your loss, my gain

Money doesn't just disappear, it's simply reallocated.

 

[DaveN]

I totally understand that you are nervous. But think about it, realistically, how much lower can it get. And you know how it goes in the stock market. You buy high, and when it goes low you cannot stomach it anymore and you sell, than boom, it goes up and you feel suicidal and get caught in a whipsaw and loose all your money.

Oh, I've ridden out several of these dips. You think you are hardened but I guess I'm not as hardened as I thought.

 

[FrozenDarkness]

China Mobile will have more leverage now to lower handset costs or subsidy or whatever the sticking point is...and Tim will play ball.

The thing that worries me is that being the biggest mobile provider in China means your average customer is poor and can't afford an iPhone. Everyone acts like China Mobile is going to save Apple once the deal is done.

i thought this too and that apple will now have less leverage for an appletv as well. too bad, it's a self-fulfilling prophecy

but have you been to china recently? yes the average customer is poor in terms of teh entire population, but there are more than enough wealthy elites.

 

[jlasoon]

Extremely strong fundamentals. All this is is a bunch of hedge fund guys trying to rattle the mutual fund guys into selling into their Apple puts so they can buy the stock back and make a couple million in a few days. All noise by mostly media morons who can't tell a call from a put, and want a story that sells clicks and eyeballs (ahhh, ahhh, Apple is falling, ahhh). Don't you think the smart guys have these idiots wrapped around their fingers? Buy the damn stock, and hold it for a few years. Returns (with dividends, no less, coming) should be 10% or better yearly. Big yawn.

Please show me the strong fundamentals.

 

[iGrip]

The Law of Large Numbers really does apply to EVERYTHING.

How does the law of large numbers apply to this situation?


"...the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed."

http://en.wikipedia.org/wiki/Law_of_large_numbers

 

[jlasoon]

Oh, I've ridden out several of these dips. You think you are hardened but I guess I'm not as hardened as I thought.

Do yourself a favor, Sell. You won't like what's coming.

 

[azpc]

I am afraid there might be some truth to Mac sales slowing.

We have been seeing a slowdown in Mac sales now for a year. At the local Community Colleges, sales of Macs have been quietly declining.

This is not what my fellow Mac users want to see. Especially with Microsoft messing up Windows 8. Mac sales should be booming!

What is the cause of the sales slowdown? Students are saying the following:

Lack of value, for the price.

Mac sales pitch in past was, slightly higher price much greater value. Mac’s included:

- Word Processing
- Spreadsheets
- Presentations
- Reasonably good E-mail program
- Web publisher
- Photo Editor
- Video Editor
- Audio Editor

Students now tell us:

Pages lacks academic formatting so they have to buy Office.

Numbers lacks several essential academic features.

iPhoto – is less powerful than iPad edition or free Picasa.

iWeb missing updates then discontinued.

iMovie, can’t import highest quality videos from digital cameras that have been on the market for almost three years. (1080 60p)

iMovie cannot burn a HD dvd or a bluray disk. (Not dead by any means) Students and clients state over and over again, I am not paying more to receive less.

Small business would love to have a powerful, easy to use flat file database that could be used with pages for creating mail merge lists and documents.

I hear this routinely on my consulting appointments. It is amazing how many small businesses are still using MS Works 4.6 from 1997. Why? They can’t find a good replacement. Apple should include a powerful, easy to use flat file database with iWork. Including a flat file database with iWork would move a lot of Macs into small business.

Come on Apple fix these issues and make a major move against Microsoft.

 

[flux73]

Yeah man I can't wait to get my Google glasses.

Google glasses will be about as popular as Bluetooth headsets. Actually, with a price point that is supposedly $1500, it's going to be a lot LESS popular. I'm sure they'll be cool to us geeks, but no one else. Google glasses are not going to disrupt anything.

 

[mdlooker]

Your assuming too much. The economic fundamentals of this country are all @#$%^& up. Nothing ever has to do anything. Cheap money, inflation, interest rates, were all about to get reamed really hard.

No harder than we've already seen. Good points all over the place in here but I believe people are confusing growth vs stagnation. I suspect the decrease in the stock is because the anticipation of something new and vibrant just isn't there as when it was for the smartphone/tablet introduction. Sure the current products are steadily growing with evidence of sales but that doesn't mean the rate of innovation is keeping pace.

The economy only effects consumers during regular times but inflation, interest rates generally have much less impact during "wowed" time frames. What I mean by this is they will spend when they want something, despite their economic standing.

So when the anticipation of the next "new" item or major improvement comes with the existing, that will inevitably drive stocks up.

Maybe my common sense needs to be recalibrated.

 

[DaveN]

Be a long term investor. Stocks go up and down on a whim. As irrationally positive as the market was last year it is irrationally negative this year. It all works out in the end. Most companies, including Samsung and Google would gladly trade places with Apple right now.

I am long term. I purchased my current shares at about $170 which has been a few years now.

 

[jlasoon]

This is not what my fellow Mac users want to see. Especially with Microsoft messing up Windows 8. Mac sales should be booming!

People need money to buy products.

 

[iGrip]

The bottom line is that Apple's growth is evolving now. That exponential upward momentum was IMPOSSIBLE to sustain. That doesn't mean the stock is headed to the doldrums...it just needs to take a refresher and expectations have to be adjusted.

The numbers show that Apple's growth has ended. Flatlined. Stopped dead and cold.

The P/E will likely fall until AAPL is no longer priced like a growth company, but instead, like a mature industrial company. Future stock appreciation will depend on dividend growth rates at this point.

 

[FrozenDarkness]

The numbers show that Apple's growth has ended. Flatlined. Stopped dead and cold.

The P/E will likely fall until AAPL is no longer priced like a growth company, but instead, like a mature industrial company. Future stock appreciation will depend on dividend growth rates at this point.

i hope you're sarcastic because nothing you said here makes any sense

 

[iGrip]

This stock is a steal at this price.

Did you feel differently when it was priced at $700? What do you consider the FMV to be right now?

 

[koban4max]

Apple is becoming Microsoft - or at least that's the fear. They sell a ton of their cash cow products and make good money - but that's just resting on their laurels. Where the hell is any innovation and disruption? People respect Apple for exactly that. Making profits on cash cows - that spot is for Microsoft.

The thing is they will sell some more iPads and iPhones but then when that's saturated they will badly need disruptive new product or at least leaps and bounds improvements to existing ones. And there are no winds of that for past couple years and counting.

innovation? it was long gone since SJ died. I'm sure they will come up with something. The standards will lack...still...

It's true that they been releasing lot of iphones and ipads...but imo, i think that's all they know how to sell. I wish they innovated something crazy....but really...

 

[syd430]

my problem with your explanation is that it is wall street cronies. Ya, different because of expectations, whose expectations? Apple's or some made up number? Trends is stronger than expectation, the reason the stock is dropping isn't because they didn't hit a huge chunk of people's expectations at the same time, it's because it's not hitting the wall street expectations so nobody wants to be the last person standing holding this stock. At this point you're no longer talking fundamentals.

The majority share holders with the most stock are pushing down the price. The largest investors are Sophisticated Investors who don't sell stock on the whim's of analyst reports as they are, in all likelihood, in buy-side finance themselves.

The price is a lot like a voting system, whether you agree with the majority stock holders' earnings expectations or not. So, we should all push the price based on what you think is reasonable earnings because you hold 3 shares? You're going to need more voting power (stock) than that. Please stop pretending you are a victim and go and invest a less inherently risky asset class.

 

[tdtran1025]

Down another 10% and I'm all in.

 

[tknelson]

Your loss, my gain

Money doesn't just disappear, it's simply reallocated.

I guess I reallocated several 6-figures of someone else's bad AAPL trades in the last ten years then!

 

[FrozenDarkness]

The majority share holders with the most stock are pushing down the price. The largest investors are Sophisticated Investors who don't sell stock on the whim's of analyst reports as they are, in all likelihood, in buy-side finance themselves.

The price is a lot like a voting system, whether you agree with the majority stock holders' earnings expectations or not. So, we should all push the price based on what you think is reasonable earnings because you hold 3 shares?

no but if ten institutions hold a ton of market changing apple stock and one has high expectations, then the other nine are on notice to sell. it's all game theory.

 

[tknelson]

The numbers show that Apple's growth has ended. Flatlined. Stopped dead and cold.

The P/E will likely fall until AAPL is no longer priced like a growth company, but instead, like a mature industrial company. Future stock appreciation will depend on dividend growth rates at this point.

Umm... but... IBM and MSFT are priced with P/E > 14. AAPL is now priced with P/E 30% below that. By your argument, AAPL is undervalued then.

 

[jlasoon]

Maybe my common sense needs to be recalibrated.

Good point! But it's a rigged game. When people have no money, they can't buy iStuff. It's all cheap credit. We have no fundamentals anymore. Look at the Feds balance sheet. That should scare the daylights out of everyone. Forced me to buy property outside this country.

 

[NAG]

Okay I'll go ahead and play the game. Why not, might be amusing.

Pages lacks academic formatting so they have to buy Office.

Define academic formatting please.

Numbers lacks several essential academic features.

Define academic features please.

iPhoto – is less powerful than iPad edition or free Picasa.

Again, can you be specific here?

iWeb missing updates then discontinued.

And your point is? You're really pushing your credibility here by bringing up iWeb.

iMovie, can’t import highest quality videos from digital cameras that have been on the market for almost three years. (1080 60p)

I thought we were talking about students. Oh wait, we're living in the universe where students were using iWeb in droves before Apple discontinued it. Silly me.

iMovie cannot burn a HD dvd or a bluray disk. (Not dead by any means)

HD DVD? Come on, can we please make this slightly more entertaining than this?

Students and clients state over and over again, I am not paying more to receive less.

And 9 out of 10 dentists agree.

Small business would love to have a powerful, easy to use flat file database that could be used with pages for creating mail merge lists and documents.

Good thing Apple discontinued Filemaker and Bento.