If I were to follow the standard rule about headlines then the answer is, ‘no.’ The rule? Any headline that ends in a question mark can be answered with the word ‘no.’ Maybe so and maybe not but an idea came to me this morning after reading that Apple’s stock tanked (again) after the company reported record sales and profits (again).
That story is getting old.
Here’s how the cycle works. Apple announces record sales and profits which market analysts pick apart so they can downgrade or negate the stock which sets off a selling frenzy, an event often exacerbated by Apple’s low guidance for the next quarter.
Who would stand to gain when Apple’s stock takes a dive, as it so often does after reporting a new round of record sales and profits?
First, Apple. Apple? Yes. Apple buys its own stock so has a vested interest in buying stock as low as possible.
Second, market analysts. Customers buy and sell upon their recommendations regarding a particular stock. Apple’s stock is as volatile as they come considering the company’s stature, profitability, and balance sheet, and those constant fluctuations are making somebody rich.
Third, stock buyers who know what’s really going on with AAPL.
The more I look at it, the more indications I find that the whole thing is rigged; a public stock market con game not far removed from peas and walnut shells in the famous circus cons of yesteryear.
Can you name another tech company which has performed as well as Apple’s financials have the past 10 years? Yet, the stock is as volatile as ever with drops, dips, and bumps that seem to favor the puppeteers of Wall Street far more than you and I. It’s one thing to acknowledge the need to buy low and sell high, but it’s something else again to be in a position where you can influence a stock to go low, then buy, then influence the stock again to make it rise just so you can sell.
Is Apple complicit in this stock market con game?
If not, then the company certainly knows what is going on, and benefits mightily when the stock drops for no apparent financial reason (notice how Apple’s financials usually are just below consensus, quarter after quarter?), so the company can scoop up billions of AAPL for less.
How is this not a game that favors those with money and connections?