A short time ago, all across CNBC, Bloomberg and the Twitter streams of the financial experts, it was all about Apple’s stock going up and up every single day – it was as if it just wouldn’t go down. Now, it might just be the most hated stock in the entire market. And Apple is particularly disliked because the stock market has been up the past four or five weeks and Apple has done nothing but go down.
The seemingly illogical turn in Apple’s stock is compounded when you see Amazon’s stock only shooting up higher while they still lacking true profits. Meanwhile, Apple keeps growing their cash hoard but the stock loses nearly over 150 points from its peak high of around $700. Apple’s cash hoard now sits at $137 billion. If Apple’s not the most hated stock in the market right now it’s certainly the most frustrating. But that’s just why you should ignore the hate and frustration and buy it. A few reasons you should buy Apple’s stock right here and now:
1) There will be an Apple TV. Yes, it’s going to come before you know it.
2) Just read a little bit of DaringFireball on a regular basis and you’ll want to buy Apple shares for your kids.
3) They happen to have these actual stores which are really crowded. What’s funny though is all this other retailers are struggling, places like BestBuy for instance, where the one product that’s saving them is Apple. These companies will cut back the number of stores and the size of their stores, probably modeling them after Apple stores.
4) That surprise purchase of say Twitter, Netflix….or maybe Spotify.
What about their new Star Trek like headquarters. It’s not like that’s just going to end up empty.
5) China. There’s lot of people in that country.
6) WSJ article about investors who have lost money in Apple. This might be sign that the stock is bottoming out, when there are articles about how the stock has lost people money.
7) All those iPhone users buying new iPhones in the years to come. Yes, they’re not going to all of a sudden switch to the latest Blackberry or Samsung phone despite what you might hear. No, iPhone users will buy another iPhone – it’s that simple.
9) They have a dividend.
10) Cash pile of $137 billion. Yeah, that’s a lot of money.
11) The stock is very much hated right now and that’s when you should buy it. Not when it’s loved.
12) And one more time: China.
13) Cheaper version of the iPhone is coming, and it will be plastic, despite Apple saying it’s not coming. Remember when Steve Jobs said they’d never make an iPad type of device.
14) If Apple’s stock goes down then David Einhorn will sue them or have a conference calling telling Apple what they should do with their pile of cash.
16) The iWatch…..I don’t know, that to me seems like a bad idea but Apple is smarter than me so we’ll add it to the list. Who knows, maybe they do something with Nike related to their Fuel wristband helps you monitor your training and fitness. I think that would be smart.
17) Again, the stock has taken a beating and is actually disliked again. Buy stocks when they’re hated.
18) They’re building this new Star Trek like headquarters in Cupertino.
19) The ghost of Steve Jobs will not allow for the company to fail.
20) The lower stock price will enable them to entice new engineers – they can give them more stock, so says Felix Salmon at Reuters.
21) China, as in China Mobile and their 700 million subscribers. Apple is said to be closer to a deal with China Mobile and offering a so called iPhone mini, a cheaper iPhone in other words, so they can continue to gain market share in China.
22) Have I mentioned David Einhorn yet? Well, he’s been buying more shares of Apple on this down trend and wants Apple to give some of their cash hoard to shareholders. While Apple might not do what he wants he doesn’t seem to want to sell any of his shares.
23) Again, Apple has a decent dividend that’s going to grow if the stock goes down anymore.