She has added zero value to this company. The Yahoo services that I use have gotten worse under her. Perfect example is the Yahoo message board and Yahoo Mail which is a ridiculous spam magnet. The Yahoo finance page takes forever to load as they insist on having a video running at all times consuming your PC memory to run force fed junk on the user. And don't even try to access Yahoo on Safari as it just hems and haws and most often times has to be shut down and go visit another site that will work. She keeps talking about the user experience, well used to. Now all she talks about is selling Alibaba and the company. She'll make a great bankruptcy administrator once she gets done liquidating Yahoo at a cost of whatever ridiculous amount her salary and options are. I haven't owned Yahoo for about 20 years but man is it unbelievable how she gets a pass, simply because she's a pretty woman CEO, as she wrecks this company. Really, think about it. If the CEO was some non-descript guy, do you think WallStreet would have not been screaming for his head by now?
Yeah, I know those profits are mainly because of oil prices but one more year of oil below $40 and they will be able to buy HALF the company back and then their earnings will be $18.24 per share with half as many shares outstanding. What the hay?!
That sounds all well and good, but it is pretty transparent financial engineering, much like share buybacks. If their core products are under attack by competitors and possibly the government, they are in trouble as far as stock valuation. Company will do well but not anywhere near as well as they have in the past year. It did hit a 52 week low today and coincidentally the CEO stepped down.
They will report great earnings but may guide down for 2016. All the lunatic politicians want to get Gilead because politically its favorable to say they will get you the drug cheaper. Now Merck is offering a similar drug for about half price with half the pills. That is going to seriously undercut Gilead's pricing power especially as most people would rather do a 12 week pill treatment vs 24 weeks. And what's with the CEO stepping down right now? I'm guessing their earnings are great and they feel it will balance out this negative.
Yeah I know, but Amzn is going to grow into their value right? So that means their quarterly revenue should grow 30x once it stops growing into it's value and will be having revenues of about $1Trillion per quarter. I can't wait for that to happen!
How can it possibly go to $92? A PE of 10 is what that would mean. Check out its business partner IBM. It currently has a PE les than 10. Unless Apple can start growing its sales beyond small meaningless amounts on the fringes from their watch and ApplePay, there is no reason anyone is going to pay more than 10x earnings for a stagnant hardware company.
They are a different model where they are using the internet to get their content out to their customers versus the high cost infrastructure of cable TV and satellite TV. Amazon similarly is a marketplace of all things purchaseable and orderable via their internet site. Netflix has a huge leg up and lead in setting up their "marketplace" for streaming video. I wonder if this is the wave of the future where neither cable or satellite will be the future of TV at all and all TV content will flow through the dumb pipes of internet lines. If that ends up being the sea change, I don't see any other company overtaking Netflix for the lead in this space unless they do a Steve Jobs iBooks type deal and try to corral a bunch of content providers into exclusively providing their products to Apple or Amazon, for example, to try and get higher prices direct from consumers.
I think they will do well but that won't nearly make up for lower iPhone & iPad sales. Apple really needs to get a big revenue stream from Apple TV but that won't happen until they get a lot more content providers on board. Probably dead money until then or rumors start floating for iPhone 7.
The price target of $150 is ridiculous. The 6S is not producing any growth. I do believe the 6 will produce some growth over the 5S as the second tier phone. Unless Apple TV starts fueling a lot of growth through content deals, I don't see Macs and iPads nor iTunes nor Apps making up for flat iPhones.
Apple did it once before and if iPhone 6 sales have bolstered sales for the quarter after $100 price reduction, may get upwardly revised earnings projection by Cook for the quarter.
With the 64gb iPhone 6, dropping $100 to the price point that people were accustomed to replacing their old iPhone at ($199 with contract, $649 w/o), I believe Apple's Sept & Dec quarters are going to be better than expected. The 6S is probably going to have 13-15M opening weekend sales, with my guess being 15M, but the second tier iPhone 6 is going to pull a lot of 5, 5S, and 5C upgraders. I don't recall which quarter it was but the same thing happened on one prior upgrade cycle where the second tier model had unexpectedly high sales bolstering the overall iPhone sales total. Also, the recent indication that a higher percentage of phone purchasers plan to buy iPhone instead of Android, may play out well with switchers to either the 6 or 6S. Something definitely to consider.
For Apple to say they are "on pace" to exceed the iphone 6 opening weekend sales has to be taken with a huge grain of salt considering preorder days are almost double this time around plus China in the mix. If they are just on pace to beat last year with twice the preorder time AND 27% greater demand created by adding China a month early, this is really bad. If the 6S was selling as good as the 6 and China was now added and the ordering time was doubled, wouldn't you think they'd be on pace to blow away last years opening weekend? If their pace is just 60% last year, with 6 adtl preorder days, they will put up 12M, but is that really good???
That actually is an excellent point. Their second tier iphone 6 may actually give them a boost this year to counter any weakness in the flagship sales. Ultimately their phone sales totals for the holiday quarter include all three levels not just the 6S. I still believe the Chinese preorder bubble being moved from Oct to Sept will cause overall flat sales in the holiday quarter.