Apple, Inc. (NASDAQ:AAPL)

CAPS Rating: 4 out of 5

From iPods to iPhones to MacBooks, Apple uses its “think different” approach to reframe computing, communication, and more.

Recs

12
Player Avatar saunafool (98.73) Submitted: 9/29/2011 9:59:19 AM : Underperform Start Price: $56.96 AAPL Score: +4.21

Apple is a great company, great products, unbelievably hot right now, and even somewhat fairly valued.

However, history does not bode well for Apple. First, they now have the largest market cap in the U.S. It's like a kiss of death for any company. The largest company by market cap almost always underperforms the broader market over time.

Second, we cannot ignore Steve Jobs leaving. He is a genius, and it is sad to see him leave the scene at such a young age for such serious health issues. However, from an investment perspective, I suspect Mr. Jobs has had more to do with Apple's magic touch than can be quantified. Somehow, he just knows what consumers want before the consumer knows. It is hard to pass that down through succession.

More dangerously, Apple's insistence upon closed architecture could eventually lead them to make the "big mistake" of thinking their customer loyalty is guaranteed. Too much competition, too many sharks circling with lower-cost products. Eventually this behemoth will misstep and there will be plenty of companies circling about to capitalize on the blood in the water.

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Member Avatar digitally404 (< 20) Submitted: 9/30/2011 11:12:00 AM
Recs: 1

Not to mention some of their insiders have recently been selling a large lot of their stock...

Member Avatar davidm9999 (< 20) Submitted: 10/1/2011 2:31:05 PM
Recs: 0

Gotta love those SEC filings. It's the Achilles heal of Wall Street. The only time you'll ever find any legitimate information on a company is when you dig through those

Member Avatar davidm9999 (< 20) Submitted: 10/1/2011 2:31:08 PM
Recs: 0

Gotta love those SEC filings. It's the Achilles heal of Wall Street. The only time you'll ever find any legitimate information on a company is when you dig through those

Member Avatar ayaghsizian (97.55) Submitted: 10/1/2011 5:18:58 PM
Recs: 4

I read somewhere that even if Apple's earnings never increase from this point on and the stock still trades in the 300's, their cash will equal their market cap in 2016. Huge piles of cash and no debt should not be overlooked. A downthumb may be OK if the market is going up, but I cant see AAPL trading in the 300's still after a couple good quarters. They will just have too much cash.

Member Avatar PSU69 (90.82) Submitted: 10/10/2011 3:07:44 PM
Recs: 1

I sold my APPL.

Member Avatar tonymagoo (47.63) Submitted: 10/21/2011 4:16:59 PM
Recs: 0

Since the Big Apple himself has passed away, we can expect a slowdown in the successes of this great corporation. Innovation has been its strength but the driver is gone. That along with the large capitalization of Apple will flatten out profits and value over the next couple of years and perhaps for a decade.

Member Avatar TopAustrianFool (64.00) Submitted: 10/27/2011 1:05:01 PM
Recs: 0

"The largest company by market cap almost always underperforms the broader market over time." But you have to try to understand why. The reason for this is that they start spending more in lobbying than in innovation. AAPL has not done this yet. If you see them going into the alternative energy sector like Samsung or GE, that is the flag you need to sell.

Member Avatar fundfooll (< 20) Submitted: 11/13/2011 4:10:58 PM
Recs: 1

If you are so negative about Apple, then why not short it?

Member Avatar davidm9999 (< 20) Submitted: 11/29/2011 6:24:05 PM
Recs: 0

It moves too slow.... but good point nonetheless

Member Avatar savron999 (< 20) Submitted: 2/17/2013 7:02:44 PM
Recs: 0

Largest market was bad when EXXON was the largest? Did it under perform?...................Jobs is necessary for a company to grow?....they can only succeed with low cost products? Hmmmm interesting theory based on what?

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