{"id":10286,"date":"2014-01-29T20:06:17","date_gmt":"2014-01-29T20:06:17","guid":{"rendered":""},"modified":"2014-01-29T20:06:17","modified_gmt":"2014-01-29T20:06:17","slug":"explaining_apple_s_stock_plunge","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2014\/01\/29\/explaining_apple_s_stock_plunge\/","title":{"rendered":"Explaining Apple\u2019s Stock Plunge"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: I get e-mails about things I don\u2019t even tell you. Folks, my e-mail is really populated with people wanting me to explain how it is — and I haven\u2019t mentioned this because some of you get irritated with Apple. You don\u2019t like Apple. You think they\u2019re a bunch of commie libs, and there\u2019s the Stick-to-the-Issues Crowd. When I talk about Apple, it\u2019s like when I used to talk about golf. People get mad. <\/p>\n

But I\u2019m gonna talk about this. I get a lot of e-mail. “We want to know, Rush.” Something just happened. Apple just announced a record quarter. They sold a record number of iPhones. They sold a record number of iPads. They had a record profit. They made more in profit in one quarter than Intel makes in a year, for example. Their profit was $13 billion, $13.01 billion, for the second quarter in a row. <\/p>\n

<\/p>\n

They sold 51 million iPhones. <\/p>\n

However, somewhere in the media in the past six weeks — I\u2019m not making this up — there was an analyst, meaning somebody that works at a brokerage firm (Anastas Mikoyan, it doesn\u2019t matter; it\u2019s a nobody) who sent a note to investors that he expected… He doesn\u2019t work at Apple. He doesn\u2019t know anything. He doesn\u2019t know anything. He said, “We expect Apple to sell 55 million iPhones.” So Apple announced on Monday that they\u2019d sold 51 million. That\u2019s four million more than they sold in the same quarter a year ago. <\/p>\n

Apple has lost nearly $35 or $40 on the stock price since. The media, the tech media is reporting on what a major disappointment this was. I\u2019ve got people asking, “Rush, how can this be? What is going on? Why is Apple hated? They have a record. They\u2019re outperforming everybody, and they get all this negative news driving investors out of the stock and so forth.” It\u2019s real simple, folks. There are a number of different ways I can explain this. <\/p>\n

One way to understand it is — as far as the financial media is concerned, and to a certain extent the tech media — Apple is to the media what the Republican Party is to the news media. They\u2019re simply despised. Now, in Apple\u2019s case, there are specific reasons for it. One of the reasons Apple is despised is because they\u2019re the biggest. But there\u2019s another reason: They don\u2019t leak. Now, you might think this is silly, but Apple doesn\u2019t have one person in that entire corporation that calls anybody in the media and tells them anything in advance. <\/p>\n

They do not leak. <\/p>\n

There is nobody at Apple that has a closet working relationship (as most organizations, political parties, individuals do) with the media. The normal way that you buy good media coverage is to leak, become a source, buddy-buddy. Apple does not do that — and that means it\u2019s payback time. It is that childish. There\u2019s also the fact that they\u2019re just the biggest. They are a tech superpower, and so they\u2019re automatically a target. But it is personal with some of these people. It\u2019s the strangest thing. <\/p>\n

A nameless, faceless analyst somewhere at a stock brokerage firm you may never have heard of can simply say, based on absolutely nothing, that he expects Apple to sell 55 million phones, and that becomes the media expectation. That becomes the standard against which Apple\u2019s gonna be measured. <\/p>\n

Now, Apple, like every other company, issues guidance. They try to tell the market what they expect in the next quarter, what it\u2019s gonna be, and they were right in the middle of their guidance. They didn\u2019t mislead anybody. They didn\u2019t undersell it. They didn\u2019t oversell it. They came in right where they led the media and the investment community. There were no surprises. But because one person, and then it ballooned to everybody, but one person said they\u2019re gonna sell 55, and they sold 51 million, and that\u2019s it. And that becomes they can\u2019t innovate anymore since Steve Jobs died, no new products since the iPad. They\u2019ve lost their mojo. It\u2019s an amazing thing. <\/p>\n

<\/p>\n

Now, on the other side of this, you got Carl Icahn, who bought $500 million of Apple the day the report came out. If you follow the money you find out they\u2019re doing fine. It\u2019s one of the best run companies in the world. It\u2019s one of the most solid companies in the world. It\u2019s almost as dependable as the US government financially, meaning government can\u2019t default. Apple is solid. It\u2019s an amazing thing to watch, and, if you\u2019re invested in them, it can be very frustrating because you watch a bunch of people who have no idea what they\u2019re talking about talk the stock down. And there are other companies treated like Apple is treated. <\/p>\n

But, on the other hand, you\u2019ve got Yahoo — well, not Yahoo. Let\u2019s take Amazon. Loved and adored and constantly praised, and they never turn a profit, by design. And their stock price is talked up and so forth. So, in this sense, Apple doesn\u2019t leak. They don\u2019t have these close, buddy-buddy type relationships. They believe in secrecy. They don\u2019t want their competitors knowing in advance what they\u2019re doing. They\u2019re pretty good at controlling what comes out of the company officially in advance of anything, at least early on. And that kind of relationship with the media and with analysts can create, “Okay, you\u2019re not gonna play ball with us, you\u2019re not gonna cooperate with us, you\u2019re not gonna be our friend? Okay, here\u2019s what we\u2019ll do to you.” And that\u2019s part of what\u2019s going on.<\/p>\n

It\u2019s the same thing that happens to the United States around the world. We\u2019re despised simply because we\u2019re best. We\u2019re despised because we\u2019re the biggest. We\u2019re despised because we\u2019re the richest. What\u2019s different about all that now is that it used to be that we were despised by foreign entities. Now the people running the country feel very close to the same way about the country as the foreign entities do. That\u2019s what makes it problematic and dangerous now.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: If you\u2019ll remind me tomorrow, I\u2019ll answer that. “So then why don\u2019t they make a bigger screen phone? Why don\u2019t they make a bigger screen phone like Samsung?” I\u2019ll be happy to answer that. Anyway, it\u2019s just fascinating. Let\u2019s say the average profit on an iPhone sale, I\u2019m gonna pick a number that\u2019s close, $300. And so they sold four million fewer phones somebody that\u2019s not even in the business thought they were gonna sell, that\u2019s $1.2 billion of income they didn\u2019t make. The stock is down $40 billion because of this. It\u2019s irrational, except the market is rational. That\u2019s the thing. There are reasons for this. They might not make sense, but that\u2019s markets for you. We could spend an hour on this if I thought you were interested. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: I get e-mails about things I don\u2019t even tell you. Folks, my e-mail is really populated with people wanting me to explain how it is — and I haven\u2019t mentioned this because some of you get irritated with Apple. You don\u2019t like Apple. You think they\u2019re a bunch of commie libs, and there\u2019s the […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nExplaining Apple's Stock Plunge - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/admin.rushlimbaugh.com\/daily\/2014\/01\/29\/explaining_apple_s_stock_plunge\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Explaining Apple's Stock Plunge - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: I get e-mails about things I don\u2019t even tell you. 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