This is a huge fail. Especially if this was the ‘amazing new innovation’ that Apple has been talking about for years now.
Here’s a link to an article from FastCompany about Apple:
I have defended Apple in the past. I held on to their stock for too long. This interview cut right to the heart of the matter:
“People like things they can do now, not just think about,” Cook says. “I’ve been thinking about The Jetsons since I was a kid. But occasionally you want The Jetsons to come to reality. That’s what Apple is so great at: Productizing [sic] things and bringing them to you, so you can be a part of it.”
Ten days ago I highlighted Apple in a post about the importance of narrative and its effect on a stock’s valuation (LINK: THE IMPORTANCE OF NARRATIVE).
Here’s some more commentary on Apple’s potential valuation if it were compared to different industries: LINK: APPLE IS STILL CHEAP
Here’s what Apple stock has been doing lately:
Last week I was invited to talk to an undergraduate business class at Riga Business School (thank you Lester Golden!). One of the themes I focused on was the importance of narrative when looking at individual stocks. From my experience, you can perform as many valuations as you like, but no matter how cheap a stock appears to be, it tends to be subservient to its overall narrative. As investors, we are taught to seek out and purchase future profits at a discounted rate, but as humans, we’re suckers for a good story.
The importance of innovation to investment success cannot be overstated. Innovation drives growth, which is the most important contributor to higher valuations, and can result in exponential effects on share prices.
Here is a list of Fast Company’s most innovative companies in 2016: