Is Apple’s Stock Out Of Juice?
Apple stock reached a high of $644 in April this year and is now almost 7x higher than it was approximately 3 years ago (low of $78.20 in April 2009). It still did beat analyst expectations, but now the stock price is dropping.
Why is this happening?
Apple’s financials still seem to be indicating growth. For example, for the past 8 years, Apple has delivered double digit quarterly revenue (50-80%). Apple also generates $14 billion in cash flow operations this quarter which all show the company is still experiencing growth.
My opinion is that Apple is not penetrating the Asian markets enough (only has 5 stores in the country). The iPhone accounted for about half of this quarters revenue, but they were unable to sing a deal with China Mobile (China’s largest telecom provider, > 600m customers, controls 2/3 of the market).
I also think that Apple are unable to continue producing innovative ideas, especially after the loss of Steve Jobs. The iPhone refresh comes in later this year (a larger display and correct iPhone 4S weaknesses) and they are working on the iTV (to be named!) also. Do you think that will be successful?
Check Out This Article Here: http://www.bloomberg.com/news/2012-04-19/apple-iphone-5-release-may-come-in-october-piper-jaffray-says.html