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  1. 1. By www.ProfitableInvestingTips.com What Happened to Apple?
  2. 2. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Apple (APPL) opened nearly $9 lower taking the NASDAQ down 1% and the Dow Jones Industrial Average 40 points.
  3. 3. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple What happened to Apple? Reuters reports how Apple and other tech stocks earned less than expected.
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  5. 5. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Wall Street declined in late morning trading on Wednesday, with the tech- heavy Nasdaq composite falling more than 1 percent after disappointing results from technology giants including Apple, the worlds largest publicly traded company.
  6. 6. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Apple (AAPL.O) shares slumped as much as 6.7 percent to $121.99, a day after the iPhone makers revenue forecast for the fourth quarter fell below expectations.
  7. 7. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple The stock was the biggest drag on all three major indexes and contributed 40 points to the Dows overall decline.
  8. 8. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Microsoft (MSFT.O) fell as much as 4 percent to $45.35 after reporting its biggest quarterly loss, as the company wrote down its Nokia phone business and demand fell for its Windows operating system.
  9. 9. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Yahoo (YHOO.O) was down 1.4 percent at $39.18 after it forecast lower-than-expected revenue for the current quarter as it struggles to revive its core online advertising business.
  10. 10. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple What happened to Apple seems to be what happened to other tech stocks.
  11. 11. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Analysts expected bigger earnings and were disappointed.
  12. 12. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Microsoft was among the losers due to a write down on its purchases of the cell phone of Nokia.
  13. 13. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple What happened to Apple, however, may continue to happen and the history of Microsoft is instructive.
  14. 14. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Microsoft
  15. 15. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Microsoft went public in April of 1986. It steadily grew and peaked at $60 (adjusted for prior and subsequent stock splits) in 1999.
  16. 16. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple The stock has appreciated 600 fold at its peak prior to the dot com bubble collapse.
  17. 17. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple It fell into the $20 range where it stayed for over a decade.
  18. 18. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Although it how trades in the $40 range Microsoft is done with its growth years.
  19. 19. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple In fact, there are concerns that Microsoft will not be able to compete in the hand held device market with Google and Apple.
  20. 20. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple The point is that Apple, and Google, have experienced phenomenal growth, like Microsoft, are perhaps due to level out and disappoint analysts. That, perhaps, is what happened to Apple.
  21. 21. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Apple may need to follow the example of Microsoft and remake itself to maintain its position. Seeking Alpha suggests that we buy Microsoft.
  22. 22. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple While the sell-side analysts are constantly obsessed with companies meeting quarterly targets, from a long- term perspective, Microsoft is doing everything it needs to do to position itself for future growth.
  23. 23. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Downsizing and restructuring its phone business is the proper course of action as is shifting focus toward the cloud.
  24. 24. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple As a result, I remain very bullish on Microsoft, and if anything, investors should use this drop as a buying opportunity.
  25. 25. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple What happened to Apple was that investors expected too much.
  26. 26. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple This may become a recurring phenomenon and then Apple will need to reinvent itself, again.
  27. 27. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Can They Sell Enough Watches?
  28. 28. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Although Apple earnings missed expectations sales of the Apple watch were said to have exceeded company expectation although the company was not specific about the results.
  29. 29. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple But Time offers and informed opinion about Apple watch sales.
  30. 30. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Apple posted its third quarter earnings on Tuesday, and, as expected, it didnt give any precise numbers regarding Apple Watch sales so far.
  31. 31. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple It did, however, give us enough data to make a viable back-of-the-envelope guess.
  32. 32. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple In its latest earnings reports, Apple has broken out the Units Sold and Revenue Made for several different product categories: iPhone, iPad, Mac, Services (iTunes, AppleCare, Apple Pay, etc.) and Other (formerly Apple TV, iPod, etc).
  33. 33. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple This time around Apples first earnings report in a post-Watch world Apple included the Apple Watch in Other.
  34. 34. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple That hides the Apple Watchs performance to some degree but only a little.
  35. 35. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple A billion dollars in revenue is a good thing but does not make up for losses in other product lines.
  36. 36. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple Nevertheless Apple has billions socked away and can weather any immediate storms.
  37. 37. http://profitableinvestingtips.com/stock-investing-tips/what-happened-to-apple The question is how long can Apple keep growing when it already has the highest market cap?