Re: Record profits yet Wall St says No
Deary deary me
The stock market is basically driven by fear and greed, but to suggest that Apple goes private is just stupid. For a start, who has the funds to buy the shares of the world's most valuable company (by market cap)? And who would take it private, and why, to what end?
Apple is not a person that can be offended by the change in shareprice. How do you think shareprices are set - by analysts grouping together in some darkened room and cackling over a (computer generated) cauldron? Or by pension funds, insurance companies, hedge funds etc buying and selling based on whether they think they can turn a good enough profit in the future for their investment.
I'm not saying that the capital markets are not without huge issues and have stepped far far beyond sense in a lot of cases, but this is one of the few areas that actually follows what probably should happen. Apple gives guidance on future results, analysts and others say what they think as well, the actual results are published and they are lower, the price moves lower to reflect the lower expectations. I struggle to see what the issue is. If you want to rant and rave at the stupidity of the stock market, go take a look at naked short selling, or the floatation of Box.