Yoni Jacobs, Executive Director and Chief Investment Strategist for Chart Prophet LLC, wrote an article today showing investors what they could buy if they sold their shares of Apple. He cited that Apple is an overvalued company with overhead risk, growing competition, and high expectations.
On January 25th, Jacobs wrote a similar article titled “Get Ready To Be Disappointed With Apple” in which he referred to the same points he wrote about today. Since writing this article, Apple’s stock has gained nearly $100 per share or $45 billion in market cap.
As one SeekingAlpha commenter wrote, “some people just do not get it.”
Philip Elmer-DeWitt:
To put that in perspective, Apple sold 68.5 million iPhones worldwide in fiscal 2011, although with the launch of the iPhone 4S in October it sold more than half that many (37 million) in just one quarter.
Analysts who cover Apple usually have experience in the computer industry. Computer hardware is not particularly useful in understanding the mobile phone business and nobody has any experience understanding cloud-based business models since they don’t currently exist. As a result it’s easy to dismiss something for which data does not exist.
Fantastic interview from Business Insider.
Scott:
Jobs did the talking, and Woz was the quiet one, although more lately Woz has found his voice more.
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