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Jobsophobia: The Overblown Fear of the Resigning of Steve Jobs.

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August 24, 2011 – Comments (4) | RELATED TICKERS: AAPL

Yes Steve Jobs is the most influential component of Apple. Yes, he turned Apple into one of the most valuable corporations in the world. Yes he is an irreplaceable tech guru who will forever be enshrined in history as the brains behind one of the most astounding turnarounds in corporate history. 

And yes, he is no longer Apple's CEO as of today.

 
Premature dumping of Apple stock is inevitable in tomorrow's trading session. But it is way too early to tell whether this resignation will have significant repercussions in the long term. Investors, whether rattled by the potential health of Steve Jobs or by the adequacy of his heir apparent, are going to react by selling. Yet, Steve Jobs is still staying on as CEO, and knowing Jobs, he will still have a commanding presence in Apple's corporate matters. Controlling and ambitious men have always made sure they consolidate power even after they "resign"- just ask Putin and his puppet president Dmitry Medvedev.

 

And although former Apple COO Tim Cook is by no means the next "Steve Jobs," that should in no way warrant the insinuation that he is incapable of continuing Apple's success. And there is absolutely no support at all for the declarations of Apple armageddon and all the doom and gloom pervading throughout the shock-ridden financial community on Apple's outlook. 

 

Jobsophobia has some credible factors, but it is simply too early to tell how much of an impact Job's stepping down as Apple CEO will have on the overall health of the company.  

 

4 Comments – Post Your Own

#1) On August 24, 2011 at 11:02 PM, davejh23 (< 20) wrote:

I agree that it isn't a big deal for the company, but I do think it's a big deal for the stock.  Many Apple enthusiasts/investors were invested in Jobs, and we've seen the stock react on rumors on his health in the past.  The stock being down 5% after-hours is really a non-event considering it's still likely to open higher than the Aug. 8th low and it's still outperforming the broader market over the last several weeks/months.  However, I do believe the stock is significantly overpriced for a weak market / recession, so I wouldn't be suprised to see the stock that led us up lead us down...the S&P is sitting below Spring 2010 highs right now...that would be down ~30% for AAPL.  I'm not buying any dips...unless they start paying a fat dividend.

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#2) On August 25, 2011 at 12:54 AM, awallejr (83.80) wrote:

The company has a forward PE of 12. And that isn't overpriced.  Cook has been executing on the company for years.  No reason why he still can't.  Itunes turned Apple around, not the computer end.  I credit Jobs with destroying Apple and with remaking Apple into a NON computer company.

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#3) On August 25, 2011 at 9:31 AM, bordereiver (33.56) wrote:

Well, since Apple is my biggest holding (other than the stock of my employer), I am hoping it holds up.  Normally I would want to buy a dip, but with a large holding and an average cost of 308, I don't want it to go that low! 

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#4) On August 25, 2011 at 10:28 AM, SkepticalOx (99.43) wrote:

Stock prices are suppose to be forward looking. Apple might have products in the pipeline that Steve Jobs touched for the next couple of years, but after that, it's a mystery. Steve Jobs is at the center of everything at Apple (read the latest Fortune article on Apple). 

Jobs has a track-record. Cook focused on logistics and supply-chain, and he was amazing at that. But the whole visionary thing... that's up to question. Investors who are unsure might think it would be a better idea to move their money into something they are more sure of. 

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