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Billionaire investor Peter Thiel recently declared in a New York Times interview that "the age of Apple is over" and, in doing so, caught millions of investors by surprise.
Present company excluded.
You and I have been talking about Apple's decline for months now, and those of you who are also Money Map Report members will recall that, in July, we moved the company to a "Hold" for exactly the same reason.
Now let's talk about what's next.
Underwhelming No Matter Which Way You Cut It
I keep a paperweight front and center in my office, bearing the inscription…
Illegitimi non carborundum est.
It's a mock Latin aphorism loosely meaning "don't let the bastards get you."
Which is how I think about Apple Inc. (Nasdaq: AAPL) at the moment.
Millions of investors are considerably more giddy as evident by the 7% pop shares enjoyed Wednesday.
Team Cook posted $3.36/share versus an expected $3.21 per share, beating the collective earnings expectations of all 34 analysts following it by 4.7%.
You'd think Santa Claus showed up based on the way shares took off.
That's understandable consider the company chalked up all-time record quarterly revenue of $78.4 billion and the $3.36 per share in quarterly earning I just mentioned is also an all-time best.
Never mind a few pesky details like – oh I don't know – iPhone sales bouncing back after three consecutive quarterly declines, iPad sales dropping 22% because of inventory issues, and the company's other products falling 8% year over year.
The 7% post-earnings bounce added $47.2 billion in market capitalization while giving millions of investors a serious case of FOMO which, of course, stands for "fear of missing out."
Honestly, I'll take the bounce because it's great for anybody holding on to Apple shares.
But is this enough good news to make Apple a "Buy" again?
Like many people, I was excited to see CEO Tim Cook pivot towards the ecosphere after Steve Jobs' untimely death because it suggested to me that he understood the bigger digital integration ahead and the opportunity that went with it. And I was willing to give him some time to turn the ship, so to speak.
Now he's had that and I am totally underwhelmed.
The company's numbers are not nearly as diversified as I would have expected at this stage of the game.
Apple Used to Ooze Innovation. Now It Oozes MBAs.
The latest iPhone is barely better than its predecessor, which means the upgrade curve is slowing down both literally and figuratively. The technology lags badly behind where comparable Droid devices were years ago.
The Apple Watch… a flop.
Apple cars… no sign of them.
Apple Pay… just a ripple in the hotly contested retail shopping experience.
I'm not just worried about the end of Apple's era like Thiel is. I'm c…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.