Apple’s earnings.

So, profits are up nearly 25% on sales of 26.9M iPhones, 14M iPads, and 4.9M Macs, but Wall Street is disappointed?

Get this: Apple reported Q4/12 profits, PROFITS!, of 8.2 BILLION dollars, and Wall Street is disappointed.

And get this: 36 BILLION revenue in the quarter, 40% gross margin, another cash dividend of 2.65 dollars per share, 41 BILLION net income for FY12, but Wall Street is disappointed…

Now, I don’t hold any shares of Apple, which have been 700+ just a few weeks ago – now they’re at around 600. This begs the question: What the hell is wrong with Wall Street??

I recently read somewhere that if Apple were treated equally to Amazon by Wall Street it would be a 2 – 3 TRILLION dollar company!

See the thing I don’t get: Amazon, or Google for that matter, make a billion a quarter, and in Amazon’s case even lose around 65 million, but their stock is going up. Google’s market cap is (right now) at 222 billion, Apple’s is at 571 billion, so about twice as much, yet Apple makes 8 times more in PROFIT each quarter.

I think Wall Street is stupid, analysts are overpaid monkeys, and people should wake up and smell the coffee.

Advertisements

2 comments on “Apple’s earnings.

  1. Chris says:

    Wall Street expected Apple to sell 15.3-million units of iPads. I believe the loss in sales points to a loss in market share.

    Amazon’s Kindle Fire and Google’s Nexus 7 tablets have competed well against the iPad. Apple plans to recapture its lost market share with the release of its iPad Mini. I am not convinced that the iPad Mini will compete well against with Google and Amazon. Not at US$329. Consumers have the option to purchase the Nexus 7 for US$159.25 and the Kindle Fire for US$199. Also, Apple released an iPad 6-months ago, and they expect customers to buy a new version already? Get real.

    Supply shortages will hurt Apple in December when iPhone5 releases in China. China loves Apple products. If Apple cannot meet demand, expect the stock to drop even further.

    If you listened to the conference call, the speakers sounded really nervous and broken. I think they know the company is falling behind.

    If you enjoy reading about technology stocks, come check out my blog: http://www.thetechstockblog.wordpress.com

    • scottph says:

      What “loss in sales” are you talking about? Apple gave a guidance, nothing else is of importance. Just because “analysts” always overestimate what Apple does, despite Apple telling them what they actually do, there’s no loss.

      Show me the numbers of Amazon’s Kindle, and Google’s Nexus 7, then we’ll talk. 90+% of web browsing around the world is done by iPad users. What are all these other tablets being used for? I’ll tell you: They’re on store shelves. Channel sales, not sales to customers.

      Falling behind who? Apple makes 60+% of all mobile profits, has 120+ billion in cash, is the world’s largest company by market cap, dominates the tablet-, phone-, high-end computer-markets. Who are they falling behind to?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s