What tech company is healthier than Apple?

Ben Bajarin, Techpinions:

A question I look at as I analyze specific companies is who is building a strategy to be a long term company. Many tech companies develop strategies and create corporate vision in the 3-5 year range. Many also don’t even go that far as they are only planning 1-2 years out. There are a rare few companies who strategize a bit longer and Apple is one of them.

If you are at all worried about what Apple’s stock valuation today means in the scheme of things, read Ben’s piece and then settle down.

  • Doctorossi

    “What Apple’s stock valuation today means” is that Wall Street is full of idiots.

  • Dan

    Interest rates are too cheap and bailouts too extravagant – when this changes and the easy money ends only then will Wall Street will come to appreciate actual profits and value Apple stock appropriately. This dip feels different however – in seven years of Apple stock ownership I have never seen it this negative and so relentlessly. Apple will change this story in time but many investors may never see the value they anticipated. That’s fair we are all adults and went in with our eyes open. I genuinely wonder if AAPL can achieve its former highs. Right now Wall Street owns the Apple story. According to them it’s too big. Profits and cash don’t matter. Rates are slowing. Apple is Sony. Steve is dead. ETC. It’s done. We know better. The future is Jony I’ve designed UI. Fingerprint sensors. Liquid metal parts. E-commerce. iTV. And amazing sustained profits. But until the stock market can actually value profits correctly Apple stock will never reach its true potential. Sad because that’s what markets are supposed to do given enough time. Thank you for linking to this article. I hope to see more coverage of Apple the stock from you.

    • I’m guessing the Wall Street community is more-than-usually drunk on its own ability to trash a stock so efficiently and thoroughly. Decades of deregulation have created a pack of Caligulas who’ll torch the planet before overlooking an opportunity to make obscene profit and brag about it in front of unemployed/underemployed people.

      That said, I’m just hoping to know when AAPL approaches the bottom of this current cycle, so I can buy more of it.

  • Dan

    One more comment? What are the chances of Apple going into banking? I wonder if that would give them more leverage on Wall Street?

    • Gandhi

      Going in to banking would mean they lose their focus on what made them great. Remember all the American car companies before the bail out? Their profits were mainly from their finance arms, and the result showed in the shitty cars they put out.

  • KvH

    It’s not that they’re too big, it’s that they’re perceived as not growing and engaging in risky behavior.

    Apple introduces one phone & one ipad a year, and as Wall Street sees it, risks the whole company on 2 devices. Samsung introduces 100 phones “spreading the risk”.

    Apple uses new & “risky” manufacturing technologies that causes low yields and supply constraints. Samsung uses cheaper easier to assemble materials and with so many phones if one has manufacturing problems a) not that many people bought that model, just ramp up on another looks kinda the same phone.

    None of this may be true in reality but it’s how Wall Street thinks. Except the domination of high frequency trading where no thinking occurs just massive feedback loops of stupidity.

    (I own apple stock and continue buying it)

  • i’m not worried about apple just pissed off at the morons and thieves on wallstreet. as taibbi asked and still asks, why aren’t any of those damned crooks in jail?