Apple takes Goldman Sachs to the woodshed

Rod Hall’s head-snapping $165 price target dismissed in 25 words.

From Apple PR:

We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results.

My take: Folks here had come to the same conclusion on their own.  Meanwhile, the silliest headline come out of the whole kerfuffle (from Forbes, naturally):

Why You Should Sell Your Apple Stock Before It Falls 26%

See also:

22 Comments

  1. David Emery said:
    At what point would it be reasonable for Apple to take legal action on some of this crap? If “corporations are people”, can “corporations sue for libel?”

    2
    September 13, 2019
  2. Robert Harris said:
    Love the nothing new. Hmm what about Watch, AirPods and HomePods and services in general

    0
    September 13, 2019
  3. victor castroll said:
    but what if rod, forbes and i are right?

    0
    September 13, 2019
    • Gregg Thurman said:
      I haven’t observed enough of your prognostications to put a value on them (working on it).

      OTOH, I’ve seen more than enough from Hall and Fortune to heavily discount their missives.

      0
      September 13, 2019
    • Mark Visnic said:
      @victor

      What if you were to think more deeply?

      0
      September 14, 2019
  4. Gary Morton said:
    Goldman purportedly has an internal ethos of high accountability. Hope this applies to Mr. Hall. His inaccurate analysis of the impact of Apple’s decision to give new product buyers the TV+ sub for a year, and his rather laughable price target on the stock are gross errors.. Guess he fancies himself as more intelligent than the folks at Berkshire, including its legendary CEO.

    0
    September 13, 2019
  5. victor castroll said:
    two things

    1. how big are rod hall’s balls? yuge. he’s punking his  Card partner.
    and
    2. speaking of  Card, there’s no way anyone at $GS can see the data. right?

    ps – if you believe that, i’ve got some  to sell you at $220.
    pps – rod’s right. we’re going down. he chose an interesting number at $165. interesting indeed…

    0
    September 14, 2019
    • Aaron Belich said:
      But at the end of 12 months or within the next two?

      0
      September 14, 2019
    • Michael Thompson said:
      You’ve lost money on your sorry bearish Apple bets. Keep going with that, there are many successful long-term Apple bears: 0.0

      0
      September 14, 2019
  6. David Emery said:
    The more interesting financial question in my mind is the margins on the new phones given their ‘aggressive’ pricing. If you combine potentially lower margins with the impact from tariffs, could -that- have a material impact on Apple’s next quarter results?

    0
    September 14, 2019
    • Aaron Belich said:
      Short term pain. Long term gain.

      1
      September 14, 2019
  7. Mark Visnic said:
    This manufactured controversy over the free one year of streaming obscures a simple and proven strategy. Apple’s strategy to offer the streaming service for a year with a device purchase is not new. Think banks, toasters, and sticky checking accounts.

    If Apple’s content generates any buzz at all, the offer likely will lead not only to some accelerated upgrades within the installed base but, more importantly, net adds to the installed base with the continuing migration of android users. For an opportunity cost loss leader (not cash loss, the streaming service is like software, zero incremental cost per single user after it is developed), Apple is betting that it will attract net additions to the installed base. Based on the content, I expect they will.

    If so, the net additions to the sticky installed base will be a recurring cash flow grand slam for the imputed $60 subscription gift.

    1
    September 14, 2019
  8. Dan Scropos said:
    Game Stop is closing 200 stores. That number will continue to grow. Where is Goldman’s commentary on that? In a world of young kids that are gamers, Apple Arcade is going to crush it.

    0
    September 14, 2019
    • David Drinkwater said:
      Yup. Heard about GameStop on the radio leaving work late this last week and, of course, no mention of Apple, just ‘mobile gaming“ as competition.

      I was admittedly shaking my head, but so much of the world does not appreciate the aspire that Apple is building.‘

      0
      September 15, 2019
  9. Kirk DeBernardi said:
    If you had a fisherman friend who was the best fisherman you had ever known and he put more hooks in the water, what would you assume and/or expect?

    0
    September 15, 2019

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