How can Netflix be more of a burden than iTunes? Apple already has to deal with the media companies.
Netflix is also 99.5% of the work my
TV does.
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Warren Buffett Says Apple Should Buy Back Stock, Ignore Einhorn's Calls for Preferred Stock
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How can Netflix be more of a burden than iTunes? Apple already has to deal with the media companies.
Netflix is also 99.5% of the work my
TV does.
As much as I dislike Warren Buffet's penchant for butt-kissing to the POTUS.... I have to agree with him on this one. Buffet is right in saying here: "You can't run a business to push the stock price up on a daily basis."
I agree with everything Buffett said about focusing on the business and buying back shares while AAPL is near historic lows from a PE standpoint, but I have mixed feelings about Apple getting into the content business.
Sony got into the content business and their business suffered, and they never truly recovered from that. On the other hand, they can use Netflix to develop unique content to drive hardware sales; something that can't easily be copied by Google and Samsung. But creating hit shows is no easy task.
Really getting tired of the "Good think you are not in charge" auto reply on this forum. Their stock is down $283 from their high at the end of September.
I'm not charge but apparently Tim Cook isn't either. We have Great "Stuff" coming. It's all about Rumors and nothing to give investors any incentive to believe them until they prove to the investors that the "Stuff" they have isn't just rumors being made up by analysts.
This is the single most stupid piece of rhetoric being spoken today. Apple has seen TONS of growth on the iPhone and iPad -- and Mac has out-grown the PC industry for every quarter for six straight years. In fact, Apple's competitors are still trying to clone Apple's products but are not coming up with anything new. Somehow people believe that Apple cannot compete with these "me too" products by simply building better versions of them at comparable prices with superior customer service. Somehow their competitors are in better shape without innovating at all?
Apple will certainly come up with new and better products and some of those will likely revolutionize industries, but it is not a requirement to keep Apple profitable in the next decade.
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How can Netflix be more of a burden than iTunes? Apple already has to deal with the media companies.
Netflix is also 99.5% of the work my
The problem with acquiring Netflix is that most content providers that have deals with Netflix probably have clauses that say that the content deals need to be renegotiated if they were to be acquired and the content providers are very cautious with Apple, Amazon and Google right now because they don't want to have those companies dictating terms to them in a decade.
"They don't really care about short term stock price and in particular short term investors.".
Not much incentive as an investor to put money in a stock that "doesn't care" about stock price.
Give me a break. Apple is worried big time about their current and future stock price. They are a company that wants to make money regardless of the BS they say during their magical announcements.
Apple is exactly like other large companies or any company. They want to make money. Face reality.
I think a stock repurchase makes sense because at the current market cap, Apple is poised to have enough cash to buy back the company in 5 years. They can buy back a 1/3 of the company today if they spent all of their cash.
It's great all these armchair QB making second guess. If you and the rest of the experts know so much. Please, go apply those well paying jobs and make some money for yourselves. Apparently Tim and the rest of his board of Billionaries know nothing.
Tim Cook said he was concerned about the stock price, but he didn't mean it... Of course they will use this opportunity to buyback when they have announced they would... And like someone said before in the thread, if you time it well, with a new product launch maybe, prices will skyrocket back and further...
Buybacks are in Mr. Cook's supply chain, I would bet
Buybacks are in Mr. Cook's supply chain, I would bet
Bert Dohmen's new target price for AAPL is
$324
http://www.youtube.com/watch?v=XPyBFXpDvvQ
If he's wrong this time.....it will be the first time!
$324
http://www.youtube.com/watch?v=XPyBFXpDvvQ
If he's wrong this time.....it will be the first time!
While I agree that its probably the safest bet is to buy back stocks. I can't help but wish they'd do something crazy with all that money. Go buy a country or something. I think you could get the island of Madagascar for a good price.
I recommend reading War and Peace. Or look up Fabius Maximus. "Apple must do something"? Laughable. "The share price is going down, we must do something" would be the most stupid thing any CEO could so. Many do
Apple can never, ever, in a million years buy back the company. It doesn't work. Here's the extreme scenario: Imagine Apple has bought back every share, except one. The guy who owns that share _owns Apple_. Now imagine Apple is really, really successful and collects a trillion dollars in the bank. And they offer the guy a trillion dollar for his share. He'll say "no, thank you". And on the next share holder meeting he'll be there, all on his own, and decide that Apple pays him the trillion dollars anyway _without_ getting that one share.
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I don't own any shares, but I Google "AAPL" every now and again.
It is fun watching the price slide day after day when it was only a matter of months ago that everyone was saying the company's worth would reach $1tn.
Down another $8.50 so far today. And it's only Monday...
It is fun watching the price slide day after day when it was only a matter of months ago that everyone was saying the company's worth would reach $1tn.
Down another $8.50 so far today. And it's only Monday...
Amazon's growth I can understand... they actually SELL things on a daily basis. TONS and TONS of things on a daily basis, like they are literally the single biggest and most diverse "online store" on the planet, and then some.
But Google? I dunno. I see more hype than delivery/revenue/sales/profits when it comes to a Wall Street analysis. I see Google stocks shooting up based on speculation of un-released products (e.g. Google Glass). To be fair, this is similar to Apple's stocks shooting up in anticipation of new product announcements. But in the end, once everyone sees the final product, the bubble bursts and the stocks deflate back down. I expect this to happen to Google sooner or later. In fact, the Google projects are being so over-hyped that in the end people are going to be disappointed with the final product because product did not meet their unrealistic "Star Trek tech level" expectations. It's at that point when GOOG stocks will plummet towards the abyss.
Well I guess will wait til the stock falls to $325 to buy back.
Then they will be buying dollars for 80 cents.
will wait til the stock falls to $325 to buy back.Then they will be buying dollars for 80 cents.
I recommend reading War and Peace. Or look up Fabius Maximus. "Apple must do something"? Laughable. "The share price is going down, we must do something" would be the most stupid thing any CEO could so. Many do
Doing Nothing hasn't helped much has it...
How can Netflix be more of a burden than iTunes? Apple already has to deal with the media companies.
Netflix is also 99.5% of the work my
Netflix has no real intrinsic value. Their traditional business (warehouses full of DVDs) can't be challenged. But that business is yesterday's news. Streaming is the future, and Netflix has no material advantage over Apple in that area aside from content agreements, and as BC2009 argued, those agreements likely wouldn't come across a buyout intact.
I'd rather see Apple use their money to take the fight to their greatest threat: Google. Google is the one taking Apple's crown jewels and giving them to the Koreans for free, all for the sake of advertising. Apple needs to barge into that market just as Google has barged into Apple's hardware market. It's time for an Apple search business. Dump Google as the default search engine on iOS and OS X. And make all searches from iOS devices and Macs completely ad-free (and privacy-respectful). Wouldn't you buy an iPhone over a comparably-priced Samsung phone if you knew that your privacy would be completely maintained and you could search the Web without ads and weighted search results?
Google gives away hardware for free to sell search advertising. Apple should give away free search to sell hardware. Two can play this game.
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Yes, "quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion" is the same as "doing nothing."
Good grief. Stop buying the BS the stock-shorting pundits are selling you.
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At a loss.
I have been ringing this bell for a while.
https://forums.macrumors.com/search/?searchid=33160971
BTW on economics Buffet is a Keynsian, so listening to him this President has increased government spending when we need more private sector spending, has increased tax rates (income 4% points, capital gains 5% points) and the types of taxes collected (Obamacare 3.5% points), which is the opposite of private sector stimulus.
We need private sector stimulus.
BTW AAPL market cap today is almost exactly 3x cash. LBO with 67% LTV possible now. 4 year payback with current cash flow and interest rates.
Rocketman
https://forums.macrumors.com/search/?searchid=33160971
BTW on economics Buffet is a Keynsian, so listening to him this President has increased government spending when we need more private sector spending, has increased tax rates (income 4% points, capital gains 5% points) and the types of taxes collected (Obamacare 3.5% points), which is the opposite of private sector stimulus.
We need private sector stimulus.
BTW AAPL market cap today is almost exactly 3x cash. LBO with 67% LTV possible now. 4 year payback with current cash flow and interest rates.
Rocketman
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Apple will probably struggle going into the search business.
Search quality is based on data, and at this point, Google is so far ahead in the game that it is almost impossible to catch up.
I don't really want another repeat of the Maps fiasco. That generated so much bad publicity for Apple.
Apple just need to keep doing what they're good at, building great products that works and are fully integrated.
Buying back shares has several effects: 1. The one day stock pump that you mention. Not worth it. 2. Returning money to shareholders. Share buyback is one way, just like dividend payments. 3. Where it really makes sense is when the stock is undervalued.
Assume AAPL is worth $600 but trades for $450. Let's say 800 million shares, the company is worth $480bn, but market caps is "only" $360 bn. If Apple bought back 200 million shares for $450 or $90bn, obviously the company value would go down from $480bn to $390bn (because $90bn are gone), but there would be only 600 million shares, so the actual value would go up to $650 per share. Basically this rewards share holders who keep their shares, while punishing those who sell shares at a low price.
Wondering what privacy you loss from google? Somebody get your address, phone number or friend list without your notice? tell us your story.
I'll repeat: Read War and Peace. Lookup Fabius Maximus. Kutuzov and Fabius Maximus won by doing nothing.