Why Apple Is Down and Netflix Is Up
Air max website nowhere is this truer than in the stock market, where shares rise and fall not so much on the prospects of the company itself, but on whether the company is doing better or worse than analysts think it should be doing.
Apple is the latest stockmarket victim of expectations. It turned in a strong performance in its earnings report for the quarter ending in December, notching a profit of $13.1 billion. That’s more than most big companies earn in a year. But sales came in a bit lower than Wall Street analysts had estimated, which suggests the fervor for Apple products may be cooling. The stock fell a whopping 11 percent as a result.
Contrast that with Netflix, which flipped from darling to dog in 2011, when a misguided plan to split itself into two separate business sent customers fleeing. The stock reeled, with a nauseating 82 percent drop from its air max website peak of $299 to a low of $54.
But Netflix just announced a surprise $8 million profit in its latest quarter, when analysts had been expecting a loss. It turns out Netflix garnered more new customers for its streamingvideo service than anticipated, as more people used tablets to watch movies. Netflix stock soared by an eyepopping 38 percent as a result.
All companies have ups and downs, but what’s fun about following technology stocks is the speed at which trends change and various companies slip in and out of favor. That volatility reflects our own mercurial tastes as consumers.
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Apple remains a dominant technology trendsetter, with its iPhones and iPads becoming ubiquitous. The problem, however, is that it no longer has the huge edge it enjoyed when its breakthrough products were the first of their kind on the market. Samsung and other manufacturers now produce smartphones and tablets comparable to Apple’s. Plus, as air max website the market for such gizmos matures, sales growth tapers off for everybody.
Apple once seemed immune to those forces, but not any more. S Capital IQ, for instance, expects Apple’s revenue to rise by 21 percent in 2013, which would be enviable growth for nearly any company. But that would be less than half of Apple’s growth rate in 2012, which helps explain why the stock has sunk 35 percent from a high of $702 in September. Apple may be morphing from a stratospheric highflier to just another successful company.
Netflix is in a more precarious position, since it’s a lot smaller and less dominant than Apple, and vulnerable to competitors both bigger and smaller. It now competes with Amazon for streamingvideo customers, while Redbox offers a different business model with its DVD kiosks. But Netflix is growing nicely in overseas markets, a big source of growth, and it’s making progress in its efforts to be an original programmer, like HBO, rather than just a video provider.
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What Netflix and Apple have in common is that they’re both a realtime barometer of consumer tastes and behavior. What they’re telling us cheap nike air max womens is that people love to watch cheap nike air max womens videos on handheld devices they can carry around the house air max website or take someplace elsebut it doesn’t have to be on an iPad or iPhone air max website.