AAPL falls victim to ‘overinflated expectations’

Yes, I know. That’s absurd. And that’s how Wall Street works. What’s really broken with Apple? The company’s inability to surpass overinflated expectations. It’s as simple as that. Almost.

Revenue and profits are slowing down. They’re growing slower as a percentage over previous growth rates. Rates. Not actual numbers. Once a company hits $100-billion in annual revenue, growth of 20-percent requires another $20-billion in revenue in just a year. That kind of growth rate is difficult to maintain, regardless of how stellar the finances.

Some smart insights here. Worth a read.



  • http://www.isophist.com/ Emilio Orione

    Wrong link

  • http://twitter.com/kipb Kip Beatty

    I’d like to read that article Peter, but that appears to be the wrong link.

    Until Peter can fix it, here’s the proper link: http://mac360.com/2013/01/the-obvious-but-hidden-secrets-behind-apples-record-numbers-and-stock-price-crash/

  • Tim Maddux
  • Jump

    Funny that a 15 year old girl from Brooklyn has a much more astute insight than the throngs of overly paid, obtuse, adult “analysts.”

    • http://twitter.com/kipb Kip Beatty

      She’s not 15 years old. She’s a 15 year Mac user.

    • Rich

      She’s not 15 years old. Good grief.

  • dr.doom

    Basically since 2008 Mainstreet has stopped buying Stocks so what is left is Hedge funds, Mutual Funds, Day Traders. So they have been manipulating AAPL around earning time.

    The whole point is that when Goldman Sachs says to buy that means they have bought the stock and are selling it to their clients for profit not that stock price is going to go up. Same way they and CBOE creating options which they can manipulate the price so the option buyers won’t make money either in put or call. This is called Maximum Pain in the option trader lingo.

    If new buyers don’t come and buy AAPL. price has to go down because there are always people with short positions. All the Apple fans have bought AAPL in 1997 aren’t going to buy more but they are hoping that some sucker will come to drive the stock higher.

  • Peter Cohen

    Screwed up the link, guys. Fixed.