MacWorld 2008: What! No Flying Car?

There are two interesting news cycles converging right now, resulting in a sale on AAPL  stock if you’re a long-term investor.

First there’s the overall market and financial newsflow that’s getting increasingly negative and knocking down certain stock sectors for no reason. Sure, we may be heading into recession, but should Intel stock (INTC) really have lost 35 percent of its value in the last four weeks? Probably not. This type of prevailing negative market sentiment is always a good time for bargain hunting.

Then there’s the Apple newsflow. It seems a lot of media were expecting a MacWorld 2008 announcement to match the WHAM of last year’s iPhone announcement. Wednesday’s San Francisco Chronicle actually had an editorial chastising Apple for not “knocking it out of the park” this year at MacWorld. How naïve. iPhone is a game changer. One every five years is amazing enough. Even a few analysts who should know better had unreasonable MacWorld expectations; check the Apple Investor News “AAPL Analyst” single category view for proof.

Then there was the MacWorld announcement that Apple sold 4 million iPhones in its first 200 days, garnering close to 20 percent of the U.S. smartphone market in the process. And this is met with a 10 percent price decline in two days!  I agree with CNBC’s Jim Goldman that both the Intel and Apple declines were overdone and that Apple remains “a long-term island in a sea of short-term waves of uncertainty.”

Of course, it’s natural for such a well-loved company to get pounced on by many of the same media that put it on its pedestal. But a decline with no fundamental news as the cause tells me this is a buying opportunity, courtesy of two converging newsflows. 

Comments

[dennis]

As a shareholder this is typical with the press.

If Jobs didn't come out with a new slice cheese, then it isn't good enough.

Unfortunately Apple is going to jump when someone says jump.

Jobs and company march to the beat of their own drum and good for them.

The day traders out there are partial blame with all the scuttlebutt and that was one of the main reason Apple to suit with Think Secret.

Proprietory information being leak can make or break a stock and company.

Hopefully Apple stock will ride this out and all the blogger and media will see that they don't dictate when Apple will announce products. And Steve and Apple will just keep cranking out the goods.

Same on the negative press and just wait for what it is coming...

[jim Murch]

You got it right. Remember last year all the pontificators thought that the iphone would be a loser and now they don't even understand what 4,000,000 units means for long run profits of Apple. Boy most news people are just like the lemming going over the cliff.
Thanks again for getting it right.