Apple’s recent financials were better than Wall Street expected, but still down year-over-year. Is CEO Tim Cook’s job on the line? Wil Gomez on the expectations game:
Expectations are different. It’s one thing to make massive profits, but it’s something entirely different to grow shareholder value and over the past year AAPL has struggled and the product pipeline seems to have plenty of gaps with little of note coming down the pipe.
And the numbers that matter:
On one side of the numbers, Apple remains massively profitable thanks to the efforts of an experienced, seasoned, veteran team of executives. On the other side of the numbers, AAPL and Apple haven’t done much recently and the stock market seems to agree, despite massive stock buybacks and massive dividends.
I view dividends and stock buybacks as wasted money. What has Apple gained? Where is the creative use of those financial resources?