Second Investor Dumps Shares as Apple Stock Drops to Near Two-Year Low

[tjleonard]

As an investor, I can see why people would dump shares based of the media.

On the other side, I think people are over looking the fact that while they did do worse than expected - "worse" is still profiting 10 billion dollars in one quarter, while performing R&D on a car, building their new campuses, among many other things.

 

[Rocketman]

No. That was back in 1976 well before S Corps existed. Partnerships were the standard legal structure small startups used back then as C corps were/are expensive to establish and cumbersome to maintain, and not tax efficient.

Also even if they had set up an S corp no bank or business is going to loan $ or ship parts, respectively to a company with no real assets. They will require a personal guarantee with joint and several liability, so Wayne still wouldn't have escaped liability at that point. He didn't know that months later Apple would find "angel investors," and he didn't want to risk what he had. Being prudent about one's assets is being smart.

Let's take all you said as true for discussion. Apple could treat him like a key employee and issue him stock options that vest over time as a thank you.

 

[dumastudetto]

This is just investors playing games with Apple's value. The company continues to lead the way in terms of building the most innovative new products and services. Apple still make the best smartphones. Their tablets are the best by a long way. And the Mac remains the most powerful computing platform in the world.

Nothing has changed. Apple will continue to be world leaders and continue selling more iPhones than they can build.

Apple is quite simply the best.

Anyone betting against Apple long-term will surely regret it.

 

[tjleonard]

It's not Apple who lost that money though, it's the investors. Apple has gained 50 billion dollars compared to one year ago.

Well keep in mind that Apple employees with stocks did lose quite a bit - but you're correct, most of the investors are not Apple employees with bonuses. 10 billion dollar profit in one quarter is still the strongest earnings around.

 

[emailnotebox]

Intel is essentially exiting the PC business because they're reached a technological impasse with increasing CPU speeds in any significant way using current fabrication methods. Keep that in mind in regards to things being "too slow". Also, the fact that Apple can now exceed the CPU performance of many contemporary Intel mobile processors with their A series chips is not exactly a negative for the company.

There would be many who would disagree with you when you say that intel is essentially exiting the PC business. I bet intel itself would hope that you think otherwise. With that said, how you are advising the original poster to consider the current impasse in cpu development is absurd. We are talking about mac here, an end product with whole bunch of components working togther, in a mac forum. If he meant specifically CPU, he would have mentioned it.

 

[Keniutek]

Im far from saying Apple is doomed and stuff like that but they have to get their ish together in the near future. They live and die by the iPhone. The rumored iP7 won't cut it...
Won't even start on the Mac subject, it's a lost cause .

 

[apolloa]

Looking at iPhone 7 leaks, Apple has stopped innovating

And the iPhone 8 rumours seem to point at nothing but innovation. It's as though Apple is going to skip a year!

 

[theluggage]

To get more market share, Apple should keep and update the old non-retina MacBook to the current Air screen resolution of 1440×900

Why? If that's what you want, get a second-hand MacBook Pro and slap a 2.5" SSD in it, or a second-hand/refurb Air. The old MacBook was a brick compared to modern "ultrabooks" and laptops.

That's the root of the problem: today's "entry level" machine is the 4-5 year old laptop you already have. There's not really that much incentive to upgrade. The whole industry has been suffering from that, and Apple had been doing better than most until this year.

No, Apple's #1 Mac problem is that the MacBook Pro range is overdue a refresh, to the point that, even though the current models do the job, everybody is waiting for new models. What Apple needs to do is to get a new MacBook Pro range out ASAP, which should probably include a thinner, lighter version of the 13" rMBP that effectively serves as a "retina" version of the Air.

At the least on an iMac if they feel there should be larger storage than a portable, would having a fusion drive (adding even a 64GB SSD for the OS) really hurt their margins?

I suspect that there is still a portion of the market that won't buy SSD-based machines - hence the fact that the classic MacBook Pro is still around. Its only the 21.5" iMac that's affected by this (the cheapest 27" comes with a 7200rpm hard drive and the higher models start with Fusion) which is probably the favourite for school/uni computer labs.

...and remember, the main point of a "base model" is to persuade customers to buy the next model up.

 

[DblHelix]

I am just watching it. If it hits 80 I am buying. I think short term we will see drops but I think in the next oh 5 years we will see a big jump as they shift to the next phase. We are ending the smartphone era and now it is coming up with the next tech innovation

 

[Michaelgtrusa]

Perhaps we need to clone Steve?

 

[DEMinSoCAL]

And the iPhone 8 rumours seem to point at nothing but innovation. It's as though Apple is going to skip a year!

what is innovative about the iPhone 8 rumors?

 

[Mactendo]

I wonder if he would be interested in returning if TC gets the axe.

I believe if he could get a real chance to rule the Apple he'd be happy to do it. But some people have to leave first.

 

[DEMinSoCAL]

Perhaps we need to clone Steve?

Perhaps Apple just needs to start listening for a change and give people what they want. Just reading the threads at MacRumors would be a good start. They've spent the last many years ignoring the comments about their products.

 

[H2SO4]

Intel is essentially exiting the PC business because they're reached a technological impasse with increasing CPU speeds in any significant way using current fabrication methods. Keep that in mind in regards to things being "too slow". Also, the fact that Apple can now exceed the CPU performance of many contemporary Intel mobile processors with their A series chips is not exactly a negative for the company.
[doublepost=1463228554][/doublepost]The guys that are in control of hedge funds make big bucks, but most of the investors in those funds don't...that should tell you something.

Every time I hear this I wonder why their A series aren’t in their or somebody elses own computers.

 

[RadioGaGa1984]

The empire is dead.

Long live the First Order and The New Republic. Wait... wrong thread.

 

[H2SO4]

Have you used a windoze machine lately? Have you tried to do anything remotely productive in an office setting with a windoze machine? It's like using a chalkboard to do word processing. The Mac ecosystem is so far ahead of everything else out there it isn't even close. I supply all my own equipment and support at work because I just couldn't take the productivity hit any longer. And it's been great. The only thing I do in windoze now is open up that creaky, heavy brick of a PC laptop every 3 months to change my central corporate password. And it's like stepping back into the nineties when I do it. Get some perspective - MS, Google, they both suck.

Biggest load of rubbish I’ve read in a long time. Windows, as much as I don’t like it is perfectly functional. If a Mac was that much better wouldn’t your average business look at the ROI that you get and give everybody Macs?

 

[Soccertess]

It's not Apple who lost that money though, it's the investors. Apple has gained 50 billion dollars compared to one year ago.

Yup, but the market has fears that Tim just isn't up to snuff. I personally see the short term gain at long term expense.. It's like Tim think's Apple's future is in watch band.. :s

 

[Dr.Chroma]

Perhaps Apple just needs to start listening for a change and give people what they want. Just reading the threads at MacRumors would be a good start. They've spent the last many years ignoring the comments about their products.

That's a nice thought. But I can assure you, Apple employee's and or Corporate Executives don't read into Rumored websites for this reason, because everything is speculative. Yes, there are great posts on here with some worthy feedback. Part of their Privacy Policy at Apple is to NOT be involved in comments or partake in reading sites like this. That doesn't mean they dont, but my Brother in Law works at the Cupertino Office, and they have fired employee's for even talking about it. They sign a waiver knowledge in this prior to employment.

Have you ever spoke with an Apple representative on the phone? Mention Macrumors or 9to5 Mac, they will NOT comment on anything referencing these sites, because of conflicts and credibility.

 

[handsome pete]

I could't disagree more. I left windoze machines behind a long time ago because they drove me to such crappy, inefficient work flows. I like the way our college intern put it when people asked why she used a Mac at work. Her reply, which I've adopted, is succinct and insightful. She said, "I can do something in 10 minutes or in 5 minutes. I'd rather get it done in 5 minutes. That's why I use a Mac."

This is pure nonsense. Please enlighten us all to these workflows that Macs excel at.
[doublepost=1463259466][/doublepost]

Perhaps Apple just needs to start listening for a change and give people what they want. Just reading the threads at MacRumors would be a good start. They've spent the last many years ignoring the comments about their products.

You're assuming the opinions of Macrumors commenters are representative of their customer base as a whole.

 

[hdc]

Hedge fund billionaire David Tepper has sold his entire stake in Apple, according to a filing with the Securities and Exchange Commission (via Business Insider UK).

Tepper's 1.26 million shares in the company were last valued at around $133 million, according to data from Bloomberg. The massive sale of Apple shares is the second reported in as many months, after billionaire Carl Icahn dumped his stake in the company earlier this year based on worries over China's attitude towards the tech giant.

Since August 2015, 146 of the 833 hedge funds tracked by Goldman Sachs had Apple as one of their largest positions, earning it the number two spot on Goldman's list of stocks "most loved" by hedge funds.

But Apple shares have been on the decline since last month's earnings call, where the company announced its first ever drop in iPhone sales and its first year-over-year revenue drop in 13 years.

Two days ago, shares of Apple fell below $90 for the first time in nearly two years amid investors' concerns over slumping sales. Apple's stock price fell 3.3% to $89.47 during Thursday afternoon trading, leaving its market valuation at $494 billion. At the same time, Google's parent company Alphabet briefly overtook Apple as the world's most valuable company, hitting a market cap of $498 billion.

Article Link: Second Investor Dumps Shares as Apple Stock Drops to Near Two-Year Low

Hedge fund billionaire David Tepper has sold his entire stake in Apple, according to a filing with the Securities and Exchange Commission (via Business Insider UK).

Tepper's 1.26 million shares in the company were last valued at around $133 million, according to data from Bloomberg. The massive sale of Apple shares is the second reported in as many months, after billionaire Carl Icahn dumped his stake in the company earlier this year based on worries over China's attitude towards the tech giant.

Since August 2015, 146 of the 833 hedge funds tracked by Goldman Sachs had Apple as one of their largest positions, earning it the number two spot on Goldman's list of stocks "most loved" by hedge funds.

But Apple shares have been on the decline since last month's earnings call, where the company announced its first ever drop in iPhone sales and its first year-over-year revenue drop in 13 years.

Two days ago, shares of Apple fell below $90 for the first time in nearly two years amid investors' concerns over slumping sales. Apple's stock price fell 3.3% to $89.47 during Thursday afternoon trading, leaving its market valuation at $494 billion. At the same time, Google's parent company Alphabet briefly overtook Apple as the world's most valuable company, hitting a market cap of $498 billion.

Article Link: Second Investor Dumps Shares as Apple Stock Drops to Near Two-Year Low

 

[Jakexb]

Buy high and sell low. Those hedge funds sure do know how to make money.

 

[Mr.Brossard]

Ok, stupid question. He had 1.26m shares which he suddenly decided he wanted to sell. What happens if no-one wants to buy them? How come, at a time aapl shares are dropping so much, there are enough buyers out there to buy up all 1.26 million of them?

High frequency trading allows for this. These platforms act as market makers, so there is always a "buyer" or "seller". In larger transactions, the sale is split into groups. Each group is sold at the best available price.

 

[Christian 5G]

Holy sh$$t I bought multiple amount of shares back when it was 113$, now what? Just letting them sit there otherwise this was one hell of a mistake I did.

They NEED to innovate!!

 

[hdc]

I have a Windows 10 PC which I hardly like to use. Why would anyone want to work with W10 when there is OX ? Windows was a mess +20 yrs ago and still is today. yes, AAPL has declined, but that is when one buys and I would not be surprised if post WWDC (in June) AAPL will see its performance curve head back upwards. As for hedge fund personnel, what good have they ever done legally for anyone?

 

[3N16MA]

Perhaps Apple just needs to start listening for a change and give people what they want. Just reading the threads at MacRumors would be a good start. They've spent the last many years ignoring the comments about their products.

Apple always ignored comments about their products. Yes, even when Steve was in charge and overseeing every product update.

Many people on this site can only see what is in front of them because that is all that matters. Bigger battery, new form factor, more ports, lower price, faster updates. That is great and all but Apple did none of those things on a frequent basis when Steve was in charge. Did we forget that it was Steve who killed the disc drive? Was on stage introducing the MacBook Air with less ports and a big price point? The same MacBook Air that would become the foundation for future Mac notebooks.

None of the features I listed above would make big gains for Apple. Temporary spike in iPhone sales after a new form factor followed by a decline. Apple cannot sustain 20+ years of growth every singe quarter by churning out bigger batteries, more ports, and new form factors every year. These things matter much more to the people in this site than the average consumer. The people on this site make up a small fraction of the overall user base. There is only so many ports you can have and a battery can only get so big before product design looks like crap.

I keep on reading about Steve wouldn't do this and Steve would have done that. Steve Jobs would have been on board with less ports, thinner designs, and not lowering prices. People on this site were always complaining about the lack of product updates when Steve was in charge.

Every time an article about Apple and its plans to get into the electric/autonomous car business is posted it is met with "Focus on the iPhone." Apple no longer innovates." "What a waste of time." "Update the MacBook Pro." "More ports." That is because every one only focuses on what is in front of them.

Apple is looking to expand its core business which is the real boom that will drive growth. Not simply updating current products and call it a day. There is only one other company on this planet that is going all out in the electric car business on a massive scale and that is Tesla. Apple looks like they can be the 2nd. Use their massive resources to compete and thrive. Electric and autonomous cars will rely heavily on software. Apple knows software and can beat Tesla in that area. All other car manufactures are dipping their toes in that area but are not going all out. Only Apple and Tesla are looking to be pure electric and nothing else. It's innovative and progressive thinking that should be applauded but instead is shunned because it won't make my iPhone look different.

Which other giant tech company is innovating and making large profits from it? Alphabet gets the mass majority of its revenue from ads. Nothing innovative is driving their growth. They dip their toes into everything and have plenty of products and services end up in the garbage bin. Samsung was trying to pull their mobile unit out of a big slump along with just about every company that uses Android as a phone platform. No one has found a way to make a profit and succeed in that area like Apple. Sony is doing what they always do, MSFT still relies on its core business and dips their toes into whatever they want.

Steve would most likely have realized that the business Apple has now is maturing. It is going to see spikes and declines rather than quarter after quarter growth. Apple will still make massive amounts of profit and still have plenty of resources. However the core business needs to be expanded into something outside of another touch screen. It has to be more than just another Mac.