Thursday, April 26, 2012

The Return of Apple

Yesterday Apple shot up about 7% after losing 13% over the last few weeks. Yes, Apple, the darling of all investors was slowly losing market cap. I had been watching this phenomenon (and crying) and trying to figure out why. I spent a few days searching but came up empty. Then on Tuesday Apple announced quarterly earnings. Sales of iPhones and iPads were ridicu-stupid. I mean iPad sales up 150% year over year. That's WTF territory.  But why had the shares been dropping? 

Apparently, "analysts" were concerned that sales of iPhones to US carriers were slumping.  Maybe they were, but overseas Apple turned this muthuh out.  What's sad is that for the last 2 weeks Apple's stock price, and the millions of investors who own APPL have seen their assets decline because some analysts had a gut feeling. A gut feeling that was wrong. They were only looking at one aspect of the company. Kinda like saying GMs in trouble because blue Chevy Volt sales might be down in Chicago on Tuesdays.  The US market is not the end all and be all.

Too bad that these same analysts will be making more predictions today. Even worse, people will be listening.