With no major product offering, and now a growing tax scandal, is the clock running out on Apple's stock and its CEO Tim Cook?
Apple CEO Tim Cook likely sings the “Friends” theme song to himself these days, particularly the part that goes, “It's like you're always stuck in second gear. Well, it hasn't been your day, your week, your month, or even your year.”
Apple is getting grilled on Capitol Hill by the United States Senate. Yesterday, Senators John McCain and Carl Levin attacked the company for using two Irish subsidiaries to dodge $44 billion in US taxes. The company is already the largest US taxpayer, shelling out $7.2 billion to Uncle Sam last year alone. (That’s 27% more than the number two, Berkshire Hathaway and 140% more than Goldman Sachs).
While the company has been up 11% this past month, it’s still down nearly 20% in 2013. And, there’s the long-term problem that critics hurl at the company: Since Steve Jobs passed away in October, 2011, the company’s innovation has indeed been stuck in second gear.
The Mac, the iPhone, and the iPad are just three revolutionary products the company introduced that were marketplace game-changers. Nothing so groundbreaking is expected any time soon. Instead, the company has been updating its offerings here and there. Like a “Friends” rerun, you can skip a few of those and know you’re not missing out on anything.
So, should you be there for Apple?
Brian Marshall, IT Hardware and Data Networking Analyst at ISI Group, believes that Apples new products aren’t going to “move the needle”. Richard Ross, Global Technical Strategist at Auerbach Grayson and a Talking Numbers contributor, thinks the charts are bullish.
Who makes the stronger argument? Watch the above video and decide.