Pricing Off Of Make-Believe?

Apple’s latest results were released yesterday. I won’t go into the details (others have done a better job), but I did want to comment on the Wall Street phenomenon of “missing estimates”. Basically, Apple missed some made-up numbers that were crafted by “analysts” who supposedly used “hard data” to build a guess as to what the numbers would be. The fact that revenue is up, profit is still healthy and earnings per share are higher mean nothing. Revenue and profit missed their “estimates”, so it’s time to dump it. Apple didn’t ship as many devices as some analysts thought they should, so Apple is in trouble. Apparently there is no chance that the estimates were wrong. Even though the estimates are fabricated. They are guesses. They are pure fiction, a hope for what may or may not come. This is the reason why I would rather not work for a public company.

Advertisements

One thought on “Pricing Off Of Make-Believe?

  1. I agree with you. Record sales of iPads and iPhones, record revenue and still the stock is catching a beating. I think what is happening to Apple now is that instead of being the leader of the pack, they are just one of the pack.

Comments are closed.