Noah Kravitz (of Read Write Web) explains why, despite record sales and year-over-year growth, Apple shares have fallen dramatically. Wall Street tends to favour fast growing companies, not ones with a steady long-term vision.
Shares of Tesla have spiked nearly 400% over the past year and the electric car maker literally just posted its first-ever profitable quarter. To compare, Apple posted a $9.5 billion profit in Q1 2013; Tesla reported profits of $15 million for the same quarter. And yet Apple's share prices tumble while Tesla's climb a hockey stick growth curve. Why? Tesla's just now showing the kind of traction that could really disrupt a big industry. Again, potential. Poor old Apple has already torn up the music and wireless businesses. Unless they make a serious push to tear another dinosaur of an industry apart, there's no high growth opportunity in AAPL stock.
The article speaks to the issue of stock price and whether it actually reflects a company's health. In recent weeks, Google's stock has reached an all time high. It will be very interesting to see if Google's share prices remain constant or fall like their closest competitor.