Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple's Stock Continues Surge With New Record High
- Thread starter MacRumors
- Start date
- Sort by reaction score
Very disappointing? By whose standards?
By mine, they had a great quarter. What other company had revenue of $35 billion (vs. $28.6 billion in year ago quarter) and $8.8 billion m(vs. $7.3 billion in year ago quarter) in profits in a quarter.
Anybody know when the best time to buy stock in? I've just started a new career and would like to learn more about investing.
In my honest opinion it's too late, unless they go on other markets as well.
They are just way overpriced.
If I had a share of Apple every time someone said this
Overpriced? Not by fundamental stock statistics.
Their P/E is 15.1, roughly the same level as the DJIA. That's hardly "way overpriced." By comparison, it's less than Microsoft and way less than Google or Berkshire,
I'll give you a stock that's overpriced: FB
If AAPL traded at FB's P/E, the stock price would be $2800 and it's market cap would be 2.6 trillion!!
And, if any stock has justification for trading at a high P/E, it's AAPL because of it's double-digit growth year over year.
Thanks Apple
Thanks for the $2 dividend yesterday. I reinvested it and with today's stock price rise I'm well on my way to another great return on that money (I got $2 yesterday but now it is already worth 1% more just a day later).
Please don't hold onto your large cash balances and then do what Microsoft did by buying things like aQuantitative ($6.2 billion to buy now written down to zero) or Skype ($8 billion and has how many years left to earn that back before its service is completely replicated for free based on video conferencing built into every OS, computer and smartphone?)! Pay dividends and make your shareholders rich!
Thanks for the $2 dividend yesterday. I reinvested it and with today's stock price rise I'm well on my way to another great return on that money (I got $2 yesterday but now it is already worth 1% more just a day later).
Please don't hold onto your large cash balances and then do what Microsoft did by buying things like aQuantitative ($6.2 billion to buy now written down to zero) or Skype ($8 billion and has how many years left to earn that back before its service is completely replicated for free based on video conferencing built into every OS, computer and smartphone?)! Pay dividends and make your shareholders rich!
Ya, one was for the closing price and one was for an anytime, intraday high.
Not ideal, but blame Apple investors for driving the price up more today. If the stock had just pulled back a bit today, maybe we could have had like a week between the two articles.
They didn't "fall short," they fell short. This wasn't some sort of phantom event, but a very real one, and the stock behaved just as any experienced investor would expect. As for the new highs, the broader markets are recovering to the four-year highs they achieved in April before the spring-summer selloff. AAPL isn't doing anything special in that regard, and the stock could easily be trading 5% higher had they not disappointed on earnings in July.
Funny how the analysts are always "clueless" whether they estimate too high or too low.
The markets decide every minute of every trading day what a stock is worth. This is the entire function of the stock markets. So it is really kind of pointless to argue whether a stock is over or under-priced. The markets will tell you exactly what it is worth on any given day, and future value is a matter of guesswork, since nobody can predict the future, no matter what they may tell you.
I especially would not use Facebook as an example of market valuation. The company's earnings track record is way too thin to make even an educated guess at future valuations. Anybody who buys that stock today is taking a real crapshoot (kind of like I did with AAPL in 1997).
I don't own any stock but I brag to my friends how high the Apple stock price is and how much profit they make.
Well yeah, they're meant to get it close to reality, that's kinda the point.
But seriously, I think much of the "clueless" reputation comes from their reasoning being their guesses -- most of them just don't get Apple and what makes Apple products so desirable. How many times* have analysts played down Apple's success, simply because their hot product doesn't have as many arbitrary feature-list checkpoints as the latest competitor.
* Answer: Lots.
Anybody know when the best time to buy stock in
Read up a bit, I'd suggest Warren Buffett. He gives a lot of basic principles to stock trading that will be relevant long after he's gone.
Apple is one of those buy and hold companies, unless you know what you are doing. I bought Apple about a year ago at around $350 and kept with it since then and have earned quite a nice return. If you can afford it, buy a few stock every few months and just go long. Plan not to touch the money for at least a year. Keep $2000 in your savings account for emergencies.
----------
If you held onto that, well done sir!
I just used FB as an example to show why it's silly to say AAPL is overpriced. It's a knee-jerk reaction by many that look only at the stock price and the market cap without any understanding of the other metrics that really mean something.
This might have been true at one time, but I don't think it makes sense to say today. Before Apple grew back to prominence few brokerage houses even covered the stock, and most of those who did were pretty completely out of touch with Apple's reality. Over the last number of years the coverage has exploded along with the stock's valuation and the quality of the earnings forecasts have improved markedly. On average the analysts estimate about 10% low. From this it may sound like they don't know what they are talking about, but investors expect these forecasts to be conservative, which is why the stock often falls even if earnings beat the street. If you own and follow any other stocks you will know that AAPL is not singled out for this treatment. It is uniform. No need to get excited or incensed by it.
Apple stock is being artificially bloated and a bubble deliberately created for nefarious purposes. Think it's a conspiracy "theory"? They've admitted doing the same to numerous banks, as well as to the price of silver through rigging and manipulation. And the Overstock CEO Patrick Byrne proved in San Francisco court that they were using his company for naked short selling and stonewalling his attempts to combat them.
Apple has quickly become the largest real-economy cash cow in existence. Real-economy meaning actual production versus insurance/banking. They're feeding it for the slaughter.
Fair enough, my stock-buying head agrees with you that the majority of 'quiet' analysts aren't so bad.
But I come to MR with my Apple-fan head on, and here (and other tech sites) is where I read about the attention-grabbing minority who love to make a lot of noise by railing against Apple.
So yes, I defer to your rational judgement.
I understand what you are saying, but my point is that making any statement about a stock being over or under-priced is kind of silly. You only know the truth after the fact. Not many years ago AAPL was selling at earnings multiples of over 100:1 and remained well north of 50:1 for a several years. Was AAPL a poor investment prospect at that time? Obviously not, knowing what we know today -- but back then, we could only guess and hope the future proves us right. The same goes for Facebook, or AMZN, or any of those other high-multiple stocks.
----------
Fair enough, my stock-buying head agrees with you that the majority of 'quiet' analysts aren't so bad.
But I come to MR with my Apple-fan head on, and here (and other tech sites) is where I read about the attention-grabbing minority who love to make a lot of noise by railing against Apple.
So yes, I defer to your rational judgement.
Railing against Apple has been a cottage industry for decades and has always morphed to accommodate current circumstances. When they were getting the stuffing beat out of them in the '90s, it was all about grave dancing, calling the company irrelevant. With all of the great success, the railing turned into calling the company greedy.
I have to disagree with you there. If you're a serious investor, you have to decide if a stock is over or under-priced or else you should never buy or sell. You'll most definitely be proved right or wrong in the future but it certainly isn't silly to make those sort of determinations. What is silly is to state any stock is over or under-priced without any basis for doing so except for looking at the current stock price and market cap.
So concepts like value investing are just a myth? Who knew? Thanks for setting me straight.