No. Stock prices bear no direct relationship to profits. Apart from gradually rising as the asset level increases from undistributed profits
Stock prices are based on the future expectations, and it seems that investors are concerned that Apples eggs in one basket (iPhone) are at risk
In other words, if the iPhone becomes less desirable. or smartphones become ubiquitous, Apples reliance on the iPhone will be bad. If Apple made solid profit contributions from a number of products, that wouldn't be the case. the short story is that smartphones are boring now. They have everything, there is nothing groundbreaking going to happen, its just a phone. Mature. Were used to it, the desire to get one every year is nearing an end. If the iPhone, like all phones lost sales as its now just a phone like every other cool phone, the other products won;t help. As the0r sales contribution is a low % compared to the iPhone. Vulnerable.
From: "Alice Saunders lwr32@mac.com [iPad]" <iPad@yahoogroups.com>
To: iPad@yahoogroups.com
Sent: Monday, 18 January 2016 3:49 PM
Subject: Re: [iPad] Apple Stock
So the big investors are making Apple stock go down. I suppose that means when investors don't think Apple did as well as they want, despite Apple making a lot of money, they'll sell their stock and Apple stock will go down. Is that it?
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( ) Alice
.( ). lwr32@mac.com
Ok, if any of you are like me, you don't understand the stock market. I know I don't. I always thought that if a company does well and makes money, their stock goes up. Apparently that isn't so. I listen to the podcasts, DTNS (Daily Tech News Show), BTNS (British Tech News Show), Mac OS Ken and iMore the most. DRNS, BTNS and Mac OS Ken are daily. iMore is about once a week for Mac news. All were reporting Apple made a ton of money (as always) but that their stock went down. How does that work? Shouldn't Apple stock go up if they make a ton of money?
Alice1. What is critical is how the company does in relation to how the big investors think it SHOULD do. When they're so dumb as to expect the impossible, the stock will go down despite the company doing well.2. More than anything else, the market dislikes UNCERTAINTY.
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Posted by: Tony <tdale@xtra.co.nz>
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