By Christian Zibreg on Mar 6, 2013
With Apple’s market capitalization having fallen below the $400 billion mark, the first such drop since January 2012, many armchair analysts are observing on Twitter and elsewhere a worrying correlation between stock prices of Apple and its chief rivals Google and Samsung. Looking at the period from Apple’s September 2012 peak, each time Apple went down, Google and Samsung seemingly rose.
And with this weird correspondence between Apple’s lows and Google’s and Samsung’s highs, some analysts are calling the Internet giant “the next Apple”, estimating that Google is on its way to join the $1,000 a share club. What a difference a few months make: one analyst in April 2012 said Apple would become the world’s first $1 trillion company. While Apple’s pain = Google’s gain, luck in the stock market changes quickly… Read More
By Christian Zibreg on Feb 1, 2013
Look, these things are not the be-all, end-all for business performance, but obviously market capitalization reflects investors’ expectations concerning Apple’s future performance. The iPhone maker last Friday hit a 52-week low and as a result ceded its top spot as the world’s most-valued publicly traded corporation to the oil giant Exxon.
AAPL shares have slowly been recovering since and today has surpassed the oil conglomerate for a second time in after-hours trading. The Cupertino firm now leads Exxon with a $10 billion market cap difference, but is Apple’s valuation sustainable in the long run? Read More
By Christian Zibreg on Jan 25, 2013
Despite Apple’s record holiday quarter earnings, investors continue to punish the Apple stock which has took quite a beating since Tuesday’s earnings report. As the stock continues to slide, Apple on Friday hit a new 52-week low, becoming worth less than Exxon Mobil and ceding the top spot to the oil corporation.
As of this writing, Exxon Mobil was worth about $1 billion more than Apple. Though Apple was briefly ahead, Exxon has reclaimed the lead. The situation is changing by the second so we’ll have to wait until the end of trading today to see who emerges victorious… Read More
By Christian Zibreg on Jan 22, 2013
Google has just posted its fourth quarter earnings for the calendar year 2012. The Internet giant raked in $14.42 billion in consolidated revenue (versus estimates of $12.3 billion), up 36 percent annually and eight percent sequentially. Excluding traffic acquisition costs and Motorola Home, quarterly revenue was $11.34 billion, up from $8.13 billion. The firm earned 54 percent of the revenue outside of the United States, or $6.9 billion.
Quarterly net income came in at $2.9 billion, a 6.7 percent increase (non-GAAP profit was $3.57 billion, up from $3.13 billion a year before). The company surpassed analysts’ expectations on EPS, which was $10.65 on a non-GAAP basis versus the $10.54 consensus. So, even though revenue climbed substantially, profit was only up slightly.
Of note, Google’s Motorola subsidiary (excluding the home biz) lost “only” 353 million, or 23 percent of the unit’s quarterly revenue. Better batteries and impact-resistant design could be in the works for Motorola handsets. A live stream of the earnings call is included right after the break alongside other tidbits related to Apple, Maps, Nexus devices and more… Read More
By Christian Zibreg on Jan 22, 2013
Carrier Verizon Wireless Tuesday morning posted results for the 2012 holiday quarter. The numbers don’t look good: the company posted a huge loss of $1.93 billion, despite adding a “record-high” 2.1 million new subscribers on smartphone penetration of 58 percent.
Even though quarterly revenues increased 5.7 percent to as much as $30 billion, Verizon reported negative EPS of a whopping $1.48, blaming the decline on pensions and costs associated with Hurricane Sandy. In a conference call with analyst, Verizon’s finance chief confirmed that iPhone activations hit 6.2 million units out of 9.8 million smartphones, or 63 percent. This was the first quarter with full three months of iPhone 5 sales on the Verizon network… Read More
By Ed Sutherland on Jan 17, 2013
A Wall Street analyst Wednesday gave investors a pep talk, invoking the words of the late Apple CEO Steve Jobs to point out the iPhone maker is hardly ready to head for the exit. Instead, Topeka Capital Market analyst Brian White issued a record target price for a stock battered by negative headlines.
“The negative sentiment around the stock has reached epic levels that we haven’t seen in recent memory and yet we believe [Apple's] product portfolio has never been stronger”, White said in an investment note. He also quoted Jobs in response to naysayers who recently came out of the woodwork spelling doom for Apple… Read More
By Christian Zibreg on Jan 14, 2013
AAPL fell briefly below $500 this morning following The Wall Street Journal and the Nikkei newswire reports of the iPhone 5 part orders halved amid what’s being claimed a ‘weaker-than-expected’ global demand for the handset. Specifically, shares briefly sank to $497 in pre-market trading Monday as investors reacted to the news.
It’s the first time since February 2012 that AAPL tanked below $500 a share. AAPL lost nearly 26 percent since a September 2012 all-time high of $705.07 a share. In the last three months alone, the Apple stock lost seventeen percent of its value. Rival Samsung seized its opportunity, having released this morning official numbers proving flourishing sales of its Galaxy S smartphone series, which surpassed the accumulated sales record of 100 million units (from the supply side) since its launch in May 2010… Read More
By Ed Sutherland on Jan 2, 2013
If you are just shaking off the holiday headaches, just think of Apple. After taking a drubbing from Wall Street analysts worried about everything from the fiscal cliff to too few (or too many) sales of iDevices, the iPhone maker woke up this morning to its stock actually up. After rising 4 percent in early morning trading, AAPL shares remain positive. Why the better performance, after being jostled around like a visitor to Time Square on New Year’s Eve? Apparently, it has to do with next week’s CES and talk that Apple could create an iWatch… Read More
By Ed Sutherland on Dec 29, 2012
All of the concerns voiced about the impending leap off the ‘fiscal cliff’ and its associated increase in capital gains taxes on stock sales have sent Wall Street into a tizzy. The end result: knocking Apple’s target share price down to $740. Nearly a dozen analysts have cut their target price for Apple stock amid talk that the iPhone maker has a dodgy future, what with supply questions hanging over the executives at One Infinity Loop. Despite all the rain clouds, the $740 per share target price reduction is about $225 more than Friday’s opening on Wall Street… Read More
By Ed Sutherland on Dec 17, 2012
Is the glass half-full, or half-empty? Apparently, when it comes to Apple’s stock, financial analysts in Europe and Asia are born pessimists. After Citigroup Sunday downgraded the iPhone maker’s stock from Buy to Neutral, shares fell below $497 in pre-market trading Monday. This after closing Friday at nearly $510. Analysts appear to have discounted the equally-positive news this morning that Apple’s two million iPhone 5 in three days in China broke a record… Read More
By Ed Sutherland on Dec 14, 2012
China’s influence over Apple’s financial health is growing. In fiscal 2011, the country accounted for sixteen percent of Apple’s revenues. But is Apple’s growth in China sustainable?
Friday, two analyst reduce forecasts amid what one described as a ‘muted’ response to today’s iPhone 5 release in the world’s largest market. As a result, Apple shares fell 3.9 percent to a ten-month low.
The decline also hurt a number of Apple’s suppliers as the firm is thought to be cutting orders in order “to balance excess inventory”. For example, Broadcom is down 3.13 percent and Qualcomm dropped 4.7 percent.
As a result, Jefferies analyst Peter Misek cut his iPhone shipment estimate for the first three months of 2013 to 48 million, down from 52 million. He also trimmed Apple’s expected gross profit margin to 40 percent, down two percentage points… Read More
By Christian Zibreg on Dec 10, 2012
You can put Panasonic, Sony and Sharp on your list of once mighty Japanese consumer electronics giant that are now forced to sell off billion dollars’ worth of property in an embarrassing move deemed absolutely unavoidable if these dinosaurs want to survive winter. Panasonic, the maker of the Viera brand of TVs, was previously reported as wanting to exit the television business to focus on churning out displays for portable electronics, especially Apple’s iPad.
These days, the company is working to raise $1.34 billion from offloading property and shares in other Japanese companies by end of March 2013, Reuters reported Monday. We’re talking land holdings, plants and even a 24-storey staff dorm in central Tokyo which has more than 47,300 square meters and houses about two thousand workers. Sony and Sharp, once the biggest names in electronics, are planning to follow suit… Read More
By Christian Zibreg on Nov 30, 2012
Bob Mansfield, Apple’s un-retired SVP of Technologies, is another high-ranked executive to cash in shares of AAPL stock after an “insanely insane” sell-off that saw a quarter of Apple’s market cap wiped off. Like other executives, Mansfield likely figured the move makes financial sense ahead of a rumored “fiscal cliff”.
According to a U.S. Securities and Exchange Commission filing, Mansfield, a long-time Apple veteran, unloaded 35,000 shares. At $582.21 a share, the transaction earned him $20,377,507.50. He still holds 29,548 shares and will get another 150,000 shares in June 2013 and March 2016 provided he stays with Apple.
Though Mansfield wanted to retire, Apple’s boss has managed to convince him to stick around for two more years. If Cook gave me a $2 million a month paycheck as a compensation for an advisement position, I’d also un-retire in a heartbeat…. Read More
By Ed Sutherland on Nov 26, 2012
After a six-month absence on the Apple watch, Citi has returned – and with a strong recommendation to buy shares of the consumer electronics giant. After hitting a particular rough patch that included a sell-off one observer called “the insanity of insanity”, Apple’s stock is set to rebound 20-50 percent.
Citi’s new Apple watcher, Glen Yeung, told investors Monday that Apple’s drop in share price has likely hit bottom. Indeed, in most cases, shares will climb back within twelve months. Yeung said the stock should hit $675… Read More
By Christian Zibreg on Nov 24, 2012
Another significant win for Apple’s popular tablet brand: British multinational banking and financial services company Barclays has confirmed it’s purchased 8,500 iPads “to assist our branch colleagues to interact with customers, improving the customer experience”.
The announcement couldn’t have come at a worse time for Microsoft, whose Surface tablet hit store shelves on October 26 but so far has generated only “modest sales”, per CEO Steve Ballmer… Read More
By Ed Sutherland on Nov 21, 2012
Disney CEO and Apple board member Bob Iger earlier this week purchased $1 million worth of shares of the iPhone maker, just one week after exercising an option on a million shares for $17.9 million. The move is seen as an attempt by the Disney executive to show confidence during a period of sell-offs one analyst described as “insane”.
Iger joined Apple’s board of directors a year ago and is credited with healing wounds between the two companies when his predecessor Michael Eisner led the studio. The executive purchased $1 million worth of Apple stock at the time, then worth near $375 per share. Under Iger, Disney has been a loyal supporter of Apple, permitting movies on iTunes during a time when other Hollywood content owners avoided Steve Jobs… Read More
By Christian Zibreg on Nov 19, 2012
After seeing a quarter of its market cap wiped off as shares hit a half-year low, Apple has finally rebounded as investors return to senses with a big rally on Monday. The unexpected sell-off has been “insanely insane”, according to Topeka’s Brian White. AAPL hit $565.35 a share in after-hours trading.
It closed at $565.73 a share. All told, AAPL soared today $38.05, or 7.21 percent, its second highest one-day dollar gain since 1984. It also pulled Nasdaq and S&P 500 with it. Though still a far cry from the mid-September high of $705.07, it’s a good sign that investors haven’t lost confidence in Apple’s longer-term prospect, especially after eight straight weeks of losses… Read More
By Ed Sutherland on Nov 19, 2012
Apple CEO Tim Cook should consider becoming a financial consultant, if this iPhone thing fizzles out. Apparently, he is on speed-dial for both ends of Pennsylvania Avenue. U.S. President Barack Obama called Cook seeking comment on the looming “fiscal cliff” crisis, according to Monday reports. Although it’s not known what advice the Apple leader gave Obama, Cook was among a number of CEOs the White House contacted. Other business leaders included JPMorgan Chase’s Jamie Dimon, Jim McNerney of Boeing and Craig Jelinek of Costco… Read More
By Christian Zibreg on Oct 31, 2012
Shares of Foxconn, the world’s largest contract manufacturer that assembles Apple’s iPhone, iPad and a number of products for other big names in tech, posted its third-quarter earnings yesterday. The results are stronger than expected and attributed to high demand for the iPhone 5, warm iPad mini reception and the incoming new iMac, which arrives in November and is already predicted to be in short supply.
On the other hand, investors are also concerned over Apple’s long-term growth prospect and Foxconn becoming too dependent on the Cupertino, California designer of shiny gadgets… Read More
By Christian Zibreg on Oct 31, 2012
Markets finally opened this morning after a two-day period of suspended trading over Hurricane Sandy. Apple on its part has cunningly slipped in news late Monday that it fired iOS chief Scott Forstall and retail boss John Browett over a series of missteps that cost the Cupertino, California-headquartered company both reputation and market position.
Apple’s bet was that investors, fans and the general public would have some time to process the news before jumping to conclusions. Many watchers and analysts deemed the move a strategic re-aligning, one that gave Apple’s design guru Jony Ive more power, turning him into the steward of the user experience across Apple products. Still, some investors were spooked and sent shares of Apple down to their lowest level since late July… Read More