- Apple Inc. AAPL shares have declined 16.54 percent over the past one month, dropping down to a low of $96.45 on January 7.
- Global Equities’ Trip Chowdhry mentioned that the stock was trading at an “incredibly depressed” PE multiple under the leadership of Tim Cook and Luca Meastri, significantly below the S&P 500 multiple.
Analyst Trip Chowdhry believes, “A passionate and visionary CEO adroitly leverages the "Law of Large Numbers" and translates this key competitive advantage into a high P/E multiple.”
However, Apple’s management appears to be using the “Law of Large Numbers” as an “excuse for incompetence,” wanting investors to “accept it as a natural outcome.”
“To make matters worse, Apple’s current compensation structure is encouraging “bozo” behavior,” according to the Global Equities report.
Chowdhry also stated that investor do not appear to have any confidence in either CEO Tim Cook or CFO Luca Maestri, believing that the CEO and CFO are “completely clues with zero-Vision and zero-Passion.”
Chowdhry believes that in order to prevent further shareholder value erosion, the time was right to bring Jonathan Rubinstein in as the new CEO, with Fred Anderson as the CFO.
“To hide their incompetence, Apple CEO and CFO want investors to believe that Steve Jobs was a unique person, a 1 in a 100 year phenomenon, and that was the primary reason why Apple Stock traded at P/E multiples in the 20s,” Chowdhry added.Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
