Apples poor performance

[Jeremy Garchow]

[John Davidson] “This happens to varying degrees with any new Apple product launch or quarterly earnings. I think what happens is that many ‘analysts’ game the system by over-inflating their expectations so that they can report negatively on Apple, which leads to stock prices decreasing temporarily (and giving those same analysts a temporary discounted price to purchase more of the stock). I can’t find the link, but Jim Cramer talked about this a good bit about 4 years ago.”

This right here.

Last time one of these reports came out (so I guess it was last quarter), it was the best third quarter Apple had ever had in the history of ever. Not the best quarter ever but the best they had ever done during that quarter.

It was talked about in the press as a miss because it didn’t meet “expectations”.

And we wonder why there’s global financial crises.

It’s truly a dog and pony show. I hate it.

[Chris Kenny]

[Gary Hazen] “Given that you have a very keen interest every time Avid’s share price or quartly earnings have the slightest hiccup. I was curious if you have any commentary on the latest financial forecast regarding Apple.

This of course is in the interest of being “Fair and Balanced” as Fox News might say.”

Meh. AAPL is still up 49% since January 1, the company’s profits are ludicrously huge, and their revenue now outstrips that of Google and Microsoft combined. Looked at another way, with Avid’s revenue of $127M in Q3, Apple literally takes in as much money about every nine hours as Avid does in an entire quarter. A 23% y/y reduction in revenue for Avid is hugely worrying — it’s the sort of trajectory that means there might not be a viable business here in a few years. In that eventuality someone would certainly buy its more profitable assets, but a) I don’t think we really know if Media Composer is one of these and b) software that gets acquired from failing companies by companies without significant previous experience in the same market (which is what would likely happen here) tends to fair quite poorly.

In other words, Avid’s financial underperformance poses a serious risk to users who are heavily invested in its solutions, which is particularly relevant in light of the discussions here about leaving Apple products because of uncertainty about Apple’s future direction. Basically, if you’re looking for security, switching to Avid seems like a terrible idea.

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Digital Workflow/Colorist, Nice Dissolve.

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[Chris Harlan]

[Jeremy Garchow] “It’s truly a dog and pony show. I hate it.
“

I agree, but I thinks its more of a dog eat pony show.