What to Expect From Apple’s Earnings

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April 23 (Bloomberg) -- Cory Johnson previews Apple’s earning on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

That is a question that has been hanging over apple -- we are getting increasing signs that there is a perceived lack of innovation outside the company.

Under tim cook, they say the businesses being run different than steve jobs.

Steve jobs would have an idea that he would pursue without a big business plan behind it.

Inside of apple now, you've got to prove yourself.

Growth that apple is from the products we have already seen.

The new products have had a hard time finding its way out of apple development labs.

When will we hear about the next big product?

We will not hear it today but you see some signs of improvement in apple and you see the fundamental existential question.

In terms of fundamental improvement, we have seen in earnings rebound.

Revenues were kind of flat year-over-year and revenues picked up six percent last quarter.

We can expect something like that again this quarter and that's good.

The operating margin decline has rebounded and that has shown some improvement.

There is this really big question as to how low they want to go with operating margins?

Do they want to go back where they were five years ago?

Maybe they want to be in the mid 30's and stay at the high end and take the most profits.

Even though they will not have most of the market share.

David einhorn says that now he is taking a position against tech stocks.

He says they are in a bubble.

What you think of that?

It was interesting his notes in his quarterly letter to shareholders where he talked about a generally perceived bubble in tech stocks.

He talked about the smaller companies rising and he had his own clever way of saying it was not valuation shorts.

He was looking at stocks overvalued but a stock that is stupidly value that doubles is just as stupid.

That's a fair point.

The valuation shorts just don't work.

He is shorting positions on things he thinks are overvalued.

He is not going after the fundamental work in the shorts but he is piling into some things.

We have seen a big selloff in many bigger names in technology like netflix down over 20% and 3-d systems.

We have seen these bubblish stocks selloff in the last couple of months and it has been an dribs and drabs but has added up to a significant selloff in the valuations are still very high.

How will this be received in silicon valley?

There is a russian silicon valley to take in capital.

There is a rush against the yield curve as well.

You see the asset allocation changing from big funds to getting some exposure to technology and venture investing.

It is flooding the valley with money and you see stupid ideas getting funded but that will not last forever.

At some point, someone has to get paid.

We have seen it happen

This text has been automatically generated. It may not be 100% accurate.


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