This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Like It or Not, Apple Will Be Apple

Stocks in this article: AAPL MSFT AMZN GOOG

But it was the company's guidance that curbed that would have otherwise been a good quarter.

Apple is known to under-promise and over-deliver. For the first quarter of fiscal 2013, the company expects to earn $11.75 per share on revenue of $52 billion. Also disappointing analysts was Apple's margin projections, which arrived much lower than expected. This comes after margins already slipped by 20 basis points in the most recent quarter.

But I can't fault the company for running its business as it sees fit and not succumbing to stock price pressures or Wall Street's expectations.

Moving Forward

Overall, this was a good quarter for Apple, which, despite its miss, continued to demonstrate excellent growth.

It's worth noting Google, Microsoft and Amazon all failed to meet earnings expectations as well. But none have become victims of their own success to the extent Apple has.

Consequently, "cannibalization" continues to be the buzzword whenever Apple has fallen short of expectations. This has become the most predictable pattern in the entire market. But it goes with the territory of Apple having become the top consumer brand in the world.

This time it was the iPhone 5 and the highly anticipated release of the iPad mini. It seems if some investors had their way, the company would slow down its refresh cycle and price its product releases more "appropriately."

Even more remarkable is the idea that some investors would prefer the company suppress its innovative prowess and stop releasing new products altogether. In other words, execute and make decisions to suit the stock.

However, these same investors forget that Apple's stock price has followed the fundamentals of its underlying business. This is the same business that current management has been executing to perfection -- propelling Apple to the most valuable company in the world. There has been no other company that has come close to the level of execution of Apple, which has averaged 35% earnings and revenue growth over the past decade.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs