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.


One thought on “The idiocy of the Market – Apple will see revenues shrink 4%!

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

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