Apple Stock Price Hits Lowest Levels Since 2011, Falls Below $400

[kas23]

So you're buying then?

So... have you bought AAPL now then?

To be honest, I didn't expect it to plummet this fast. So I'm hesitant. Plus, I just bought a new home, so all extra money is going to closing and downpayment.

But, really, is this stock still even worth it? I like stocks that work for me and send me a paycheck on a regular basis. Apple stock is sexy and all, but it does not work for its buyers (unless you bought when it was < $100 ).

 

[JayCee842]

iCloud is a mess
Apple maps, LOL
iPhone 5 with small screen
iOS is boring
iPad mini was expected
iMac production delays for 3 months


they have done nothing exciting in YEARS

How exactly is iCloud a mess? I find it bery usefull and it works great.
iMaps? It has improved significantly and I noe prefer it over Google Maps.
iOS is boring? Yes I agree. It's become stale. But only to those of us in the tech community. It's still an amazing OS to regular people.
iPad mini was expected so no argument there.
iMac sales don't account for their entire revenue. So they don't matter as much as iPhone and iPad sales.

What more do you want them to do? Bring the features from the S3 and S4? Features that aren't really usefull and not important?

 

[HadrianM]

No, really?

Oh, you know. Between the...

• Lack of real innovation in the iOS platform with a crippling Maps app.
• Too slow on the incremental upgrades of iPhone/iPad hardware.
• Ancient Mac Pro.
• Crippling Mac Mini with under-powered video card. Forcing some users to choose to iMac.
• Crippling iMac 21 inch with no user install-able RAM. Forcing some users to choose a 27 inch.
• Super-thin iMac no one asked for!
• Bad times at iTools/.Mac/MobileMe/iCloud - removal of iDisk and flimsy integration of services outside of iOS.
• Boredom over OS X. (side note, I feel like they are just pumping out OS X to get to version 11 with some kind of fanfare)

 

[kas23]

So Cook and the executive team are a bunch of duds. What do you suggest happen? Should the board fire Cook and other executives? And if they do bring in who?

The problem with Apple now is they have already sold everything they got to the American consumer. No more growth potential here. This is why Apple's bending over backwards for China. Apple's growth potential is now dependent on China and Cook knows this. The problem is, the Chinese government is hellbent on dragging Apple's good name through the mud. The latest Chinese government ploy to bring Apple down to earth is a pornography charge. Apple? Pornography? You got to be kidding. So if Apple is going up against the Chinese government, which hold all China's purse strings, good luck Apple. What is Apple going to do? Issue another apology?

 

[3282868]

Where are all the supporters with their execuses? Apple is on a downward spiral, and with innovation like the GS4, Note 2, and HTC One, it looks like Apple is being muscled out of their own game.

It's been nice knowing you Apple!

Not to mention other software and hardware companies are picking up in the pro market(s) that Apple has neglected. There is only so far one company can go in consumer products, there is a good deal of money and marketshare in professionals. A lesson for those who dismissed the pro-market for so long. Their mobile devices are getting long in the tooth, and as much as some claim their pro-market was "niche", guess what, it isn't.

 

[TheHateMachine]

Prepare yourself for the stock to go down even further if apple announces good profits.

You do understand that profit is not the only factor in the market's valuation of a company's stock right?

 

[LSUtigers03]

I said from day one that Tim Cook is no replacement for Steve Jobs. Apart from kissing China's backside, I haven't seen him doing anything.

Well to be fair no one would be considered a good replacement after Jobs.

 

[TallManNY]

You may have got these numbers from Yahoo, and they are confusing and wrong. I don't know what these yahoos are up to, but they are wrong.

"Market caps" is share price times number of shares. The amount you'd have to pay if you wanted to buy all Apple shares at today's price. About $400 bn. But since Apple has about $130bn in the bank, you'd need only $270bn to buy all the shares (the existing shareholders would get $270bn from you and $130bn from Apple's bank account). Those $270bn are the enterprise value; the amount you pay for Apple's business and it's ability to make profits.

I have no idea where Yahoo's number of $385bn enterprise value comes from. It's nonsense. But your analysis is nonsense as well: If any company has cash or other assets, then market caps is more than enterprise value. If they have debt, then market caps is less than enterprise value.

$137B was cash balance on December 31. Current position is between $140B and $150B. $145B is the estimate I use, but it is just a guess. We will know the position on March 31 as part of the earnings report next week. In light of current cash position, this stock price looks silly low.

 

[crescentmoon52]

Apple stock....

I'm glad I sold the stock at 665.... they should offer a stock buyback but prefer to keep the heap of cash in their coffers.... sell, sell, sell!!

 

[jamezr]

Shows how susceptible the markets are to perception and reputation.
Samsung, HTC and Sony have climbing stocks, following good product launches, and healthy balance sheets.
Apple might have the biggest bank balance of them all, but investors needs to see growth, product and strength. Not just quarterly sales.

Perhaps it's time for apple to start communicating more.. Rather than these long periods of silence between keynotes. Their idea that keeping quiet and secretive will avoid rivals stealing their ideas has been proven somewhat pointless by the failing lawsuits and patent battles.

So maybe it's finally time for a "ideas that apple is working on" keynote?

I agree.....more information around future product launches would be ideal. I would also go one step further and say they need to give the customer what they want...instead of assuming they know better than the actual customer.

 

[Apple Corps]

Hey, I'm not on an executive search committee for Apple. However, not having an opinion on who should replace Cook does not negate an opinion that he needs to go.

They are paid millions upon millions of dollars for performance and are not delivering it.

 

[jamezr]

$137B was cash balance on December 31. Current position is between $140B and $150B. $145B is the estimate I use, but it is just a guess. We will know the position on March 31 as part of the earnings report next week. In light of current cash position, this stock price looks silly low.

But at the same time having to much cash is also a problem and make the investors uneasy....why not give it back to the stock holders....isn't that where profits are supposed to go?

 

[osaga]

Apple hasn't announced a single revenue drop, year over year, in a very long time... what revenue losses are you talking about? I do think the option of a larger screen size would boost revenue, but that is potential revenue. You can't lose revenue you don't yet have.
Haha.

The smartphone market has continued to grow, while apple's revenue remains flat. That's lost revenue.

Also:
Google's influence in Motorola will create a premium android phone. The Samsung galaxy has some staying power because of advertising. But the HTC One is the phone to have. Over the next 6 months HTC's popularity will become more obvious, and Samsung will be old news. But Motorola is the one to look out for.

Apple just needs a wow factor, and they're back on top. If Apple gives us a 5s and a cheaper iphone their reputation as a premium manufacturer is out the window. If Apple gives is a sexy iphone 6 and a cheaper iphone it's sunny days for years.

 

[santiagoamr]

You are right

About $270 billion.



So you clearly don't know what enterprise value means.

To buy all the Apple shares, you'd need to pay $400 billion. But you wouldn't have to own $400 billion, only $270 billion, because your $270 billion plus Apple's $130 billion is enough to pay $400 billion to shareholders. You would then own the company with no cash and no debt.

If another company X had $140 bn market caps and $130 bn debt, then with $270 bn you could buy all the shares ($140 bn) and pay off the $130 bn debt (that's the rest of your money) and own that company with no cash and no debt. That company X would have the same enterprise value as Apple.

"Enterprise value" values the business. Apple's business is worth the same, whether they have tons of cash, or hundred billion debt. The company is worth more because they have cash, but not the business.

My bad English is not my first language. I was talking about net value not stock market capitalization and definitely not Enterprise Value

 

[ryanlaing]

They haven't come out with interesting products for a while, and there doesn't seem to be anything interesting in the pipeline.

iPhone 5 brought LTE - but most other phones have LTE
iPhone 5 brought larger screen - but other phones have larger screens (and higher resolutions)
iPad mini - because the 7" android tablets were selling well
iOS6 - nothing exciting
maps - swing and a miss
podcasts - swing and a miss
passbook - swing and a miss
siri - not there yet

In the works:
iWatch - guaranteed flop
iTV - always rumored, likely unable to meet expectations
iPhone 5S - same thing, a little different.
iPad5 - same thing, a little different
iOS7 - pray for a major refresh to make our devices feel new again.

wildcard:
let appleTV run apps, turn the 99 dollar set top from a 'hobby' into a must have. a new marketplace. build a nice controller and they have a new gaming console. and draw the masses to iTunes video.

I'm not trying to be harsh, but realistic. Apple used to feel new and exciting, now they feel unsure and cautious. Competition becoming more ambitious and slowly topping Apple in several ways. People are paying more attention to Android. Apple has solid and stable products, but right now that's not going to attract shareholders the way it did years ago.

 

[2IS]

Not to worry. The next iPhone will have a better camera.

 

[HiRez]

I said from day one that Tim Cook is no replacement for Steve Jobs. Apart from kissing China's backside, I haven't seen him doing anything.

Who IS a replacement for Steve Jobs? I don't think many people believed Cook was a replacement, but someone had to step into the role, and Cook, as Jobs hand-picked replacement, seemed the most obvious choice. Who else would you choose?

 

[Phil A.]

I said from day one that Tim Cook is no replacement for Steve Jobs. Apart from kissing China's backside, I haven't seen him doing anything.

And yet the stock is still higher than the vast majority of time when Jobs was alive and it reached record highs under Cook

 

[vvswarup]

Shows how susceptible the markets are to perception and reputation.
Samsung, HTC and Sony have climbing stocks, following good product launches, and healthy balance sheets.
Apple might have the biggest bank balance of them all, but investors needs to see growth, product and strength. Not just quarterly sales.

Perhaps it's time for apple to start communicating more.. Rather than these long periods of silence between keynotes. Their idea that keeping quiet and secretive will avoid rivals stealing their ideas has been proven somewhat pointless by the failing lawsuits and patent battles.

So maybe it's finally time for a "ideas that apple is working on" keynote?

Interesting that you say that. For some time now, we have been seeing seasonality with Apple earnings, with increases around product launches, meaning tht customers have started to figure out the cycle. Also, many are saying that the "wow" factor in Apple products is not there, due in part to the leaks. How would a product roadmap solve the problem of a decreased "wow" factor?

 

[Dmunjal]

People like you are exactly whats wrong with the tech media today. "Stale, boring, etc." How about, "works great, don't change what isn't broken, stable and intuitive for 6 years now." Apple started with a gem and nailed most things right out of the gate (keep in mind, while at the same time being the first to venture into these uncharted territories. They didn't have the luxury of seeing how well these ideas worked prior to themselves actually doing it and learning on their own).

And don't even start with screen sizes affecting Apples STOCK PRICE.

You know, its sad when the level of intelligence in the media is about at the same level of regular trolls on message boards.

Oh I get it. Once you "nailed" it, it's time to rest. Do you even know the tech industry? It moves at light speed and if you don't innovate constantly, you get left behind. Even almighty Apple. Today, innovation (I don't necessarily agree with it but that is what the public wants) is dictated by larger screen sizes and more a more flexible interface.

Apple deserves a lot of credit for revolutionizing the mobile industry. But don't rest on your laurels. Competitors are not standing still.

 

[HiRez]

Hope you didn't buy at 695...

Poster said he sold at $700 so why not? At least that's a profit, which is more than many have. I bought all my AAPL between $198 and $375 so technically I'm still in profit territory but it's brutal to think how much more I would have made if I had sold near $700, and I almost did.

 

[Rogifan]

Hey, I'm not on an executive search committee for Apple. However, not having an opinion on who should replace Cook does not negate an opinion that he needs to go.

They are paid millions upon millions of dollars for performance and are not delivering it.

So you think Apple should replace cook but you have no idea who would be a good candidate to run Apple?

 

[vvswarup]

Where are all the supporters with their execuses? Apple is on a downward spiral, and with innovation like the GS4, Note 2, and HTC One, it looks like Apple is being muscled out of their own game.

It's been nice knowing you Apple!

How exactly is the GS4 innovative? A larger screen size, a better chip or camera don't count as "innovation" to me. Also, the consensus after the GS4 launch was that It was a good phone, but not the final nail in Apple's coffin.

 

[k995]

Good time to buy?

Nah, sold at 600 waiting till 350 wich it is going to hit .

 

[Larry-K]

its not all bad - it makes macrumors forums a nicer place as there used to be so many AAPL gloaters when the stock was at $700 but now very few people admit to owning the shares...

edit apart from guy above me

I'm pleased to say that my friend, who could least afford it, was prescient enough to buy in at the absolute peak.

I, on the other hand, was too lazy to buy at 13, so I'm not going to do it now.