7 Reasons Apple is More Doomed Than You Think

Food for thought as Apple enters the future without Jobs. An interesting read.

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Apple is in the news for losing its rank for a time on Wednesday as the most valuable publicly-traded U.S. stock. And now Henry Blodget — who first became famous for the gap between his bullish reports on tech stocks and his bearish emails about them — is touting seven reasons why Apple is a buy. But I think all those reasons are wrong and the stock has further to fall. Apple fell $23 a share — dipping below $400 on April 17. According to Bloomberg, one of its audio-chip suppliers, Cirrus Logic, produced too much inventory — which analysts concluded meant that iPhone sales could fall short of analysts’ expectations. Vernon Essi, Jr., an analyst at Needham & Co., wrote in a research report, “We blame Apple for losing its mobility mojo. This was simply an inventory overbuild for the iPhone 5 relative to Apple’s forecast.” But this has not stopped Henry Blodget’s Business Insider from arguing that investors should buy Apple shares. According to the SEC, in 2000, Blodget issued a very bullish analyst report while at Merrill Lynch on a company called 24/7. The next day, he wrote an email claiming the company was “a pos [piece of ****].” This helped get him banned from the securities industry. And in the article he co-authored, The bull case for Apple: Why the stock is not as doomed as some think, Blodget cited seven reasons for touting Apple as a buy. Here’s why I think his argument does not hold water.

7 Reasons Apple is More Doomed Than You Think - Forbes

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