Apple has few products; increasing competition and less margins. Their not exactly in a growing position based on these numbers.
If anyone can give me a reason for this massive rise I'll listen; but as far as I can tell there wasn't much.
Apple is doing FINE. Its the stupid stock market people who paid more than the shares were worth who are being caught out here.
Question is not 'why are they falling when xyz' its; 'why did they rise despite zyx'
Apple does need to do more in 2013 to keep their value above that 400 mark though.
exactly what I was trying to say. Apple will make significant profits year over year for the forseeable future. That isn't in doubt. Those who were saying stock price has nothing to do with success of a product or quarterly profit are entirely correct. There have been cases where companies have LOST money, but seen the stock rise anyway since the loss was far less than expectations.
What happened here is that the stock price was $700 or whatever because analysts (this is the important part) and investors (less so) were expecting apple to continue to grow at unsustainable levels for years to come, and that expectation was built into the stock price. It wasn't long ago that pundits were speculating apple might be the first trillion dollar stock. In hindsight this is ludicrous, but these things tend to be self fulfilling prophecies- people would buy in at higher and higher prices because everyone just "knew" the stock would keep going up, jobs was a genius, and of COURSE there would be a revolutionary product year after year like clockwork to keep people excited. It sounds silly, but the same thing happened with real estate, and it's happening now with gold.
quite frankly, it was unrealistic- I said before, and grimshaw pointed out above that apple's profits (and thus their share price) relies entirely on what the ipad and iphone do. ANY dip in that market, or gains by a competitor and those sky high expectations get turned upside down, and the stock takes a dive.
The good news here is that the market tends to overreact to news, both good and bad. investors flee for the hills at the first sign of trouble to avoid a loss, so apple stock will probably come out of this undervalued- those looking to pick up shares that more accurately reflect the worth of the company can do so, and those that bought in at a higher price will likely see it recover once the panic dies down.
