The idiocy of the Market – Apple will see revenues shrink 4%!

Wall Street is betting that Apple’s earnings will shrink 4%
[Via Brainstorm Tech: Technology blogs, news and analysis from Fortune Magazine » Apple 2.0]

That’s a dumb bet, says Katy Huberty, given 14% growth in the markets Apple serves

FORTUNE — The chart at right, posted before Apple’s (AAPL) shares lost another $12 (2.5%) Tuesday, comes out of Morgan Stanley’s “What’s in the Price?” stock analyzer. It suggests that at Monday’s $480 a share, the market was pricing in long term earning growth for Apple of -4%.

Anything is possible, of course.

But in a note to clients early Tuesday, Morgan Stanley’s Katy Huberty characterized the situation as a “free option” on Apple’s track record of innovation.


Not that the revenue growth will slow down or that revenues will not increase. But that revenues will actually decrease!

There is simply no rationality in wall Street when it comes to Apple.

About these ads

One Response to “The idiocy of the Market – Apple will see revenues shrink 4%!”

  1. mj Says:

    The analysts are still upset that they can’t get their man a seat on the Board and further manipulate the stock.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


Get every new post delivered to your Inbox.

Join 451 other followers

%d bloggers like this: