Electronic Arts Inc. (ERTS)
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- General Discussion on ERTS
- Why Apple Stock Is Poised To Go Flat - At Best [view article]
- Things Aren't Good - Fast Money Recap (9/4/08) [view article]
- It's D-Day For Take-Two Interactive [view article]
- Why I'm Backing Up the Take-Two Truck [view article]
- Gaming the Recession [view article]
- Electronic Arts: Still Wining and Dining Take-Two [view article]
- Will EA Change the Gaming Industry's Revenue Model? [view article]
- Wall Street Breakfast: Must-Know News [view article]
- Inside NPD's July '08 Gaming Report [view article]
- The Video Game Industry: An $18 Billion Entertainment Juggernaut [view article]
- Electronic Arts: Growth is Coming [view article]
- Report from Inside Electronic Arts' Shareholders Meeting [view article]
loading ...Recent ERTS Articles
- Things Aren't Good - Fast Money Recap (9/4/08)
- It's D-Day For Take-Two Interactive
- Why Apple Stock Is Poised To Go Flat - At Best
- Why I'm Backing Up the Take-Two Truck
- EA/Take Two Deal Update: No Updates
- Electronic Arts: Still Wining and Dining Take-Two
- Gaming the Recession
- Will EA Change the Gaming Industry's Revenue Model?
- Is the Entertainment Industry Recession-Proof?
- EA vs. Take Two: Now They’re Talking
- Full List of Articles »
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Why Apple Stock Is Poised To Go Flat - At Best [view article]
Ah, trolling for hits are we Mr. Verke?If you really believed any of these talking points you wouldn't have bothered to even write the article.... Reply
Why Apple Stock Is Poised To Go Flat - At Best [view article]
I was quite shocked at all the emotional and insulting posts to the author's article. I guess it is a testatment to their ability or lack therof to express themselves. To defend Apple in such an emotional manner points to a big ego. Most psychologists agree big egos mean little self esteem. I guess that's what you'd expect with people overly enamoured with gadgets. Do they get away with calling their friends, co-workers, family "idiots"? I have seen some articles on seeking alpha that may have come close to warranting comments such as these but definitely not this article.There were however some excellent counter arguements and I commend the authors of those posts, but who am I to pass judgement?
I have heard however that recently many customers have complained of connectivity issues with the 3G phone which see it default to the lower bandwidth signals (please excuse my tech ignorance if anything in the previous sentence is technically incorrect).
Anyway, if you have something interesting or at least semi-intelligent to say we'd all love to hear it, otherwise keep the elementary school insults to the schoolyard or other sites where such low class verbiage is acceptable. Reply
Why Apple Stock Is Poised To Go Flat - At Best [view article]
1) Big numbers 2) Jobs mortality are the only arguments worth responding to.1) Big numbers - If Apple overtakes PCs as the dominant computers worldwide, this is not a concern.
2) Jobs' health - In my view, this is only a short-term concern and only a serious concern for the next two years or so. If something happens to Jobs within the next two years (I pray that nothing does), I and every idiot out there will short Apple for one month or so. Then there will be others in Apple who will take over. There ARE others, who are very prominent within the company. Within the next two years these others will become more and more prominent without. Reply
Why Apple Stock Is Poised To Go Flat - At Best [view article]
If you need a quick, derisive laugh, check out his 'website'. ReplyWhy Apple Stock Is Poised To Go Flat - At Best [view article]
I agree with most of the postings above – this guy is clueless. Yes, of course the law of big numbers will prevent Apple stock from making a "similar move like the last two years" but that doesn't mean the stock will be flat.This guy has a "Chicken Little" mentality.
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Why Apple Stock Is Poised To Go Flat - At Best [view article]
What a pile of crap. Does this author understand anything about Apple, or just read the competitors' news releases, and listen to the shorts as they try to trash Apple. ReplyWhy Apple Stock Is Poised To Go Flat - At Best [view article]
So wait a minute...Apple's market cap is getting too big, but it is just now attempting to go mainstream?Let's continue to poke holes in his arguments:
1. "I mean Apple being a larger company than GE with only 5% market share in the electronics department, I doubt it."
When Apple is still doubling it's earnings (counting deferred revenue up front), not that difficult. You see, there comes a firm belief from many of us that Apple will be the computer of choice in five years. It will overtake Microsoft. Apple will overtake GE in marketcap. Apple will become the biggest company in the world by owning our entire digital life.
2. "What if people prefer a much smaller mobile device with only voice capabilities to a large one with a screen and a lot of data tools?"
Not gonna happen. It's about convergence in the future. But even if so, then Apple will make one that's easier to use than any other competitors device. It's the beauty of Apple. They don't necessarily start trends. They see where they are going, and do it better than anyone else.
3. "Recent projections tie a significant amount of projected revenues to the App Store."
A few. But not enough revenue to significantly affect earnings.
4. "I think major game developers would be quick to establish their own devices and own App Stores."
[sarcasm]Right...becau... EA made their own Nintendo DS.[/sarcasm]
It's all about convergence. No one wants to carry around 3 or 4 different devices in their pocket. That's why a "smaller mobile device with only voice capabilities" is not the future.
Game developers will embrace the iPhone. Period. They aren't going to make their own device, especially given the costs and since the App store isn't a profit maker anyways.
Apple's whole business model has been to use iTunes, to use the App Store to sell hardware...iPhones, iPods, Macs. That's why so many other online music services have failed, because the service in itself isn't that profitable.
5. "Apple is trying to make up for its decreasing margins in the devices department through making use of the greater volume in its iTunes and App Store. However, if a serious attempt is made by Apple’s rivals in targeting its online stores Apple’s profit margins can be under serious trouble. In turn, an earnings miss could make a huge dent in Apple’s stock."
Remember that the iPhone isn't just $199, but that it's getting at least $200+ per device from the carriers. So technically, it's margins are not decreasing on that product at all.
Second, Apple's rivals have seriously tried to make a dent against iTunes. Microsoft, Dell, Napster and they have all failed!
6. "As people get more financially strained, discretionary premium products are the first thing to go."
Possibly. But cell phones are no longer a discretionary product. I think as things get tighter, consumers will get smarter.
What will get canceled is satellite radio services as you can now access programs and radio on the iPhone itself. Satellite TV and Cable will get canceled because you can now access just the shows you want through AppleTV and the iPhone.
Convergence!
Heck, even a MacBook or iMac will save you money because of all the software that comes with it. Reply
Why Apple Stock Is Poised To Go Flat - At Best [view article]
What planet did this guy come from? Is he naive or just an ostrich with his head still in the sand? If you want to take the 'pulse' of Apple you just cannot do that from a lofty chair on Wall Street or anywhere else. It's like politics, you need to get down in the grass roots. Visit an Apple store and you will understand what Apple is about. Its not about cost or breadth of products, its about "user experience". Yes they stumble sometimes but no more than any big company. How many of us have seen our companies stumble even more than Apple? The key is, they try their best to fix things and the bottom line is, their products provide a great user experience. To those who pick on people and call them names just because they like Apple or have stock I say, get a life or better yet, some therapy. ReplyWhy I'm Backing Up the Take-Two Truck [view article]
i agree, gaucho - if anything, the confidential presentation IS the earnings. It wouldn't be worth bluffing if TTWO didn't have an ace up its sleeve. ReplyBlah Dah
Why Apple Stock Is Poised To Go Flat - At Best [view article]
RE: "Market Cap Has Gotten Too Large To Expect a Similar Move like the Last Two Years"Exxon Mobil and BP had approximately $40 in annual profit. A few decades ago, $40 billion was the entire ANNUAL REVENUE for a top S&P 100 company.
The world in this time went from 2.5 billion people to over 6.5 billion people. Populations are expanding, world prosperity is expanding, and world markets are expanding.
Apple has the potential to be one of the first TRILLION dollar revenue companies.
Information, together with processing of it, accessing it, and transmitting it, is the OIL of this age. And, the world is in the very early stages of it.
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RE: "Would it make sense that a company which has 5% market share in a sector which is tied to our discretionary spending"
This is a STATIC viewpoint. Apple itself is growing many times that its markets are growing. You comment is like viewing yourself at a red stop-light and saying that you are not going anywhere because the light is red. ALL reports show that Apple is dramatically increasing market share and unit sales of its primary product lines.
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RE: "Despite the Innovation in the Products, Product Range Is Not Very Diversified"
Apple is in computers, software, communications, mobility, graphics, video, publishing, information storage, networking, etc.
All of these are modern day categories. No buggy whips are in these areas.
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RE: "What if mobile is not the next big thing? What if people prefer a much smaller mobile device with only voice capabilities to a large one with a screen and a lot of data tools?"
Mobile IS the next big thing. And, it will continue to spread around the world for MANY years.
People HAVE had a much smaller mobile device with only voice capabilities. They are called CELL PHONES. People now realize that they need MORE than just voice when they are moving around. That is why MOBILE is the current big thing and will continue for many years to be the BIG THING.
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RE: "So Much of Company’s Success Seems to Be Tied to A Single Person – Steve Jobs:"
Apple has approximately 20,000 employees. Do you really think Jobs does EVERYTHING at Apple. Jobs is a visionary and a great leader, however Apple has succeeded because it continually hires the best people and motivates them to do their best.
Countries and companies have had a visionary leader at some time, and these countries and companies have continues success. After George Washington died, the U.S. continued to be successful for the next 200 YEARS.
Founder Watson of IBM died and IBM continues to be one of the consistently successful companies in the world.
Giving all credit to the conductor of a musical performance is not only unfair, it is very wrong. Jobs is the orchestrator of Apple, and will always be recognized for that. However, he cannot do the work of 20,000 employees. OTHERS do make a big contribution.
Recently, in a interview, Jobs said part of his responsibility was to fire someone who was not performing. Jobs recognizes that have the right person in the right job is essential to top performance. This is one of Jobs contributions to the success of Apple.
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RE: "It is no fault of Apple that this happens, there are only so much people around who are willing to pay a 50% premium over a similar device just because it looks cooler and is a little more fun to use"
Apple computers in price comparison to Dell have recently been shown to be CHEAPER than Dell in some cases. There are over 6 BILLION people in the world and not all of them want the cheapest crap on the market.
Dell's financial report last night showed a big revenue gain and a big drop in profit margins. Despite a common belief, computers are not really a commodity. When you spend a large part of your life on a computer or a mobile phone, you tend to want something that is easy, pleasurable, and productive to use. Apple excels at these qualities.
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RE: "As people get more financially strained, discretionary premium products are the first thing to go."
Tiffany's reported excellent financial results two days ago, and RAISED its forecast for 2008 and 2009. I have yet to read that jewelry is an absolute necessary component of life, yet Tiffany's is growing in a global downturn.
Today, mobile SMARTPHONES and NOTEBOOK computers are an ESSENTIAL part of life. Everything we do involves use of or need of these two products.
If Tiffany can grow in this economy, Apple has an even more essential contribution to make in one's personal and business life.
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Why Apple Stock Is Poised To Go Flat - At Best [view article]
JOHN: "I am curious to hear back from all of you Apple fans out there...." You are to o polite..there are not Apple fans..just biased Apple freaks who can't stand a word of criticism...but I am sure you expected that..AAPL is going nowhere ReplyWhy Apple Stock Is Poised To Go Flat - At Best [view article]
$45?!? Jump in your time machine and try to buy at $45. There is no excuse for being almost 100% off in your numbers. Do a little research before writing such garbage. What is your agenda here? To declare your ignorance? Just as in your numerical error, this article is almost 100% off. It stanks! Another opinion piece with no substance. Thanks! Replystock owner
Why Apple Stock Is Poised To Go Flat - At Best [view article]
"Product Range Is Not Very Diversified" that is honestly a weak argument. Apple is becoming a huge player on the desktop markt, laptop market, mobile market, leader in music players and music retail industry. They will soon deliver touchscreen desktops and laptops that will tranform many existing software applications and draw these away from the windows platform.And no doubt enter the PC (currently <<10% share) and video market (just starting) much further and I can finally kick out all this set-top-boxes and simply stream TV through iTunes, play music, foto's, look videos, browse internet, play games, etc. etc. and I'll I need is my apple-TV and touchscreen interface (iphone, ipod touch, touchbook or any other apple device that has touchscreen).
Look further into the potential and you'll see they are miles ahead and a huge territory in front of them still. And look who's buying into their products, I have no doubt this company will become one of the most important companies in the world in 5 years time.
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Why Apple Stock Is Poised To Go Flat - At Best [view article]
This story feels a lot like the type of analysis we are going to hear about next week when the rethuglicans attempt to inform us of the "economic miracle" that is upon us... ReplyWhy Apple Stock Is Poised To Go Flat - At Best [view article]
Mr. Verke,I won't resort to calling names, but boy, I must admit to agreeing with the prior posters... you seem to have drawn tenuous conclusions from your dubious premises.
Market cap? Sure, I'll buy the disconnect between Apple and some other folks. This outfit is generating some serious cash, though. Billions and billions of it. The company projects this to continue, and regardless of its current overall market share, and/or the state of the PC market at home, there is abundant room for growth in sales from just capturing additional market share. The products are highly desirable. They are day and night better than PC/Microsoft combos, and the company has figured out how to service its customers so well it occupies the TOP SLOT in customer satisfaction.
Have you used one of these things? Good god, man! Eveything they touch gets better. Hell, the even reinvented the concept of backup, with their simple, obvious, and bulletproof Time Capsule/Time Machine combo. They finally fixed one of the biggest headaches in all ConsumerCOmputerLand..... the need for reliable and simple and transparent and fast and useable (and wireless!) backup of data and program. Cheap. With decent margins. Equivalent windows hardware has to be cobbled together with the disparate products of companies that don't talk to each other.
The examples of greatness in this outfit are legion. I think you'd be well served to consider how much of a game changer they are, then revisit your arguments.
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