Apple stock down 10% after hours
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Apple stock down 10% after hours
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Re: Apple stock down 10% after hours
#2Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund.
There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
Re: Apple stock down 10% after hours
#3Be much more interesting if when an analyst guesses wrong, they get punished instead.
Re: Apple stock down 10% after hours
#4Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund. There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
Interesting chance for a HN gut check:
If you were offered $100k of Apple or $100k of Amazon right now, which would you choose? You would have to receive and hold for 10 years.
To me, the answer to that is obvious (AMZN), but I'm curious if my intuition matches up with the general opinion.
I'm not sure which would be a better sign.
ETA: Original intent was to talk about 100k in dollars, not in shares.
Re: Apple stock down 10% after hours
#5Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund. There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
That might be a reason for a long-term decline, but it's not a reason for it to drop 10% in a few hours. Something is going on (I have no idea what).
EDITED to add: ah, I see they released earnings.
Re: Apple stock down 10% after hours
#6Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund. There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
Interesting chance for a HN gut check: If you were offered $100k of Apple or $100k of Amazon right now, which would you choose? You would have to receive and hold for 10 years. To me, the answer to that is obvious (AMZN), but I'm curious if my intuition matches up with the general opinion. I'm not sure which would be a better sign. ETA: Original intent was to talk about 100k in dollars, not in shares.
Are you consciously taking the valuation of the stock into account?
Re: Apple stock down 10% after hours
#7Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund. There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
Interesting chance for a HN gut check: If you were offered $100k of Apple or $100k of Amazon right now, which would you choose? You would have to receive and hold for 10 years. To me, the answer to that is obvious (AMZN), but I'm curious if my intuition matches up with the general opinion. I'm not sure which would be a better sign. ETA: Original intent was to talk about 100k in dollars, not in shares.
I would pick Apple. I have a feeling that in 10 years they will have re-invented themselves and be making huge profits, and paying dividends on those shares.
For example, 100k of Apple shares today will net me 265,000 USD. Assume that I decide to just pocket that money ... I could live off that for a full year, easy. They pay that every quarter (or at least that's the case at the moment). I'll make money now, be able to stick it into a savings account or re-invest it into other stocks.
If you gave me 100k in Amazon i'd be grateful, but keeping it for 10 years means that in the mean time it is useless to me. No dividends, trading at an excess that is absolutely insane, it will come crashing down eventually. Apple at least at that point has cash to continue operations, Amazon doesn't.
Re: Apple stock down 10% after hours
#8Biggest reason for this is that Wall Street has noticed the huge cash pile that Apple is just sitting on. A good chunk of their market cap is made up of this cash pile that they are reinvesting through their hedge fund. There's a reason why Amazon keeps going up even though they are barely profitable. Amazon keeps reinvesting their profits into the company's R&D rather than throwing it in the bank.
That might be a reason for a long-term decline, but it's not a reason for it to drop 10% in a few hours. Something is going on (I have no idea what). EDITED to add: ah, I see they released earnings.
People emotionally overreacting to the slight revenue miss (by slight I mean missed over-hyped analyst expectation by 1%). It's bizarre to see that fundamentals are completely disregarded when it comes to trading the company with the highest market cap in the world.
Re: Apple stock down 10% after hours
#9Earlier quoted context omitted.
Interesting chance for a HN gut check: If you were offered $100k of Apple or $100k of Amazon right now, which would you choose? You would have to receive and hold for 10 years. To me, the answer to that is obvious (AMZN), but I'm curious if my intuition matches up with the general opinion. I'm not sure which would be a better sign. ETA: Original intent was to talk about 100k in dollars, not in shares.
I would pick Apple. I have a feeling that in 10 years they will have re-invented themselves and be making huge profits, and paying dividends on those shares. For example, 100k of Apple shares today will net me 265,000 USD. Assume that I decide to just pocket that money ... I could live off that for a full year, easy. They pay that every quarter (or at least that's the case at the moment). I'll make money now, be able…
Your math looks off.
100k = 100,000. 100,000 * (currently) $514 = $51 million USD. You certainly could live off that for a year.
On second look, you are talking about dividends.
Re: Apple stock down 10% after hours
#10Apple is in the category "growth company" and needs a growth story to justify its value. When the roof comes in sight, as it does currently, the party is over.