With apologies to Don Adams of the TV show Get Smart, Apple 4th quarter financials ‘missed it by that much.‘
Every quarter Apple projects revenue, profits, and earnings per share for the next quarter. In the 4th quarter, Apple, again, exceeded their own guidance, but failed to exceed analysts projections, despite record revenue, record profits, record EPS, so the stock took a hit.
Meanwhile, tablet competitor Amazon’s financials were less than expected, and the company lost over $270-million dollars. Amazon refuses to release sales figures for Kindle devices, and runs advertisements which compare the Kindle to the iPad mini using misleading and incomplete information. Yet, Amazon’s stock is on the rise and the company is trumpeted by market analysts, and CEO Jeff Bezos is considered the second coming of Steve Jobs.
Amazon’s PE ratio (price to earnings) is $2,836 vs. Apple at $13 (which is lower than Microsoft and Google). Lower is better. Amazon has never been a highly profitable company, while Apple is among the most profitable in the world.
What’s wrong with this picture?