Apple Recap: Wrong Analyses, Negative Growth, and Positive Reviews
After following a predominantly downward trend for much of the past six months, Apple’s (NASDAQ:AAPL) shares made an important technical breakthrough last Friday; they closed above the stock’s 50-day simple moving average for the first time since October 4, and that move could have positive long term implications. That Apple is finally trading above this benchmark level gives analysts a shard of evidence that shares may have finally bottomed out after their six-month decline, which began after the stock hit its all-time intraday high of $705.07 on September 21.
The gains that pushed Apple’s stock above its moving average helped shares post gains for the last-five day period and carried them up to close at $1.67, or 0.36 percent, at $463.58. Here’s a cheat sheet to today’s top Apple stories:
Why Most Analysts Are Wrong About Apple
It is not often that you read an analysis of Apple that claims that almost all analyses of Apple are flat-out wrong. But that is exactly what analyst Michael Hiltzik of the Los Angeles Times asserts in his analysis of what is wrong with all the analyses about Apple. As Hiltzik points out, when Apple’s stock rocketed past $700 in September last year, many analysts promulgated a story that Apple was an unbeatable winner that “would eventually grow to consume the entire Earth and everything on it.”
Then when the stock plunged down to the mid-$400 range, many analysts began screaming dire warnings of Apple’s imminent demise. Now it seems the prevailing story among most analysts is that Apple has lost its creative edge and will soon be overtaken by rivals such as Samsung (SSNLF.PK)… (Read more.)
Will Apple Report First Negative Annual Growth in a Decade?
Philip Elmer-Dewitt, who covers the Apple beat for CNNMoney, posted an article on Sunday stating that second-quarter earnings growth will contract at the Cupertino-based company for the first time in a decade. Elmer-Dewitt, who has been following Apple as a media correspondent since 1982, said that out of all the analysts that CNNMoney polled, even the most bullish feel that Apple will post its first numbers since 2003 where the growth for the past quarter was lower than the same quarter of the year prior.
The general consensus was that Apple’s earnings per share, which for the second quarter of 2012 sat at $12.30, will slip to $10.18, according to a poll conducted by Thomson Financial… (Read more.)
Why is Apple on UBS’s Most Preferred List?
In six of the past eight trading sessions, Apple’s stock has made gains, likely catalyzed — at least in part — by its inclusion on UBS’s Most Preferred List.
In adding Apple’s stock to that group, the brokerage addressed several rumors that have been circulating about the company’s plans in recent weeks. The listing, seen by StreetInsider, cited several positive catalysts for Apple, including “an increase in the buyback/dividend, a new low-end iPhone, and China Mobile (NYSE:CHL) reselling an Apple phone in the fourth calendar quarter, helping support earnings growth in F2014.”… (Read more.)