Opinion: Two factors explain Tim Cook’s optimism versus Wall Street’s pessimism
Tim Cook’s interview on CNBC last night highlighted the huge gulf between his optimistic view of Apple’s future prospects, and the pessimistic one being expressed in both Wall Street commentary and the share price.
The share price speaks for itself. As Business Insider notes, the stock has dropped 11% since Apple announced its first-quarter earnings, and 27% over the past year. Even billionaire investor Carl Icahn – who once couldn’t stop talking about how under-valued AAPL was – sold 7M shares back in February and has now dumped the stock altogether. Not the greatest expression of confidence in the company’s future.
Analysts have been queuing up to pronounce that Apple is doomed, the iPhone is on a slide, it’s all over. Tim Cook, meanwhile, claims that Wall Street is guilty of ‘hugely over-reacting’ to a short-term glitch …
