Consider this chart from Marketwatch on Apple’s Q2, YOY revenue growth:
Any reasonable reader would conclude that those numbers are impressive. For comparison purposes, 437 companies in the Fortune 500 list earned less than that for all of 2012. At the same time, any smart reader can also see that the YOY percentage growth, is slowing. And while this chart doesn’t address margins, there are various other charts that show those slowing down also (last chart here).
Unfortunately for Apple shareholders, that % slowdown has caused a stunning fall in Apple’s stock price over the last few months.
Never mind that the iPhones – old and new – continue to sell very well. Never mind the fact that the iPad line – classic and mini – continues to be the tablet to own for many – both in the US and outside the US. Never mind the fact that Apple’s Mac lines have brought in more revenue than all of the PC industry combined (last chart) for the last quarter of 2012.
Ignore all of that. Slowing percentage growth is bad. Period.
So until Apple’s executives introduce a killer new product or figure out what to do with all of that cash on its balance sheet, and in the process, show “more” growth, the stock must to be punished.
Makes perfect sense, right?
Disclaimer: I am long AAPL. And I used the recent sub-$400 dip to buy more. I would like to think that I would feel this way about Apple even if I didn’t own Apple stock.