So this article was voted highly on HN today
http://www.newyorker.com/online/blog...e-hedgies.html

The guy is effectively saying that Wall Street shouldn't be making such a fuss, the drop of Apple from $700 to $450, the fact its been $350 below what it was only half a year ago isn't a reason to put pressure on them. He forgets its really all about future potential, and that the company has an aggressive marketing policy of anything they release is amazing and the next best thing.

Anyway, I thought you guys might appreciate a discussion on this, so I'll kick it off with my other post:

I would suggest that the stock price of over 700 was a bit of market hype, rather than anything concrete.
Stock prices are ment to be about the future earning potential, not so much the current. This is why Amazon has such a high stock price, despite making very small profit compared to say Apple.
However it has come apparent to most investors that Apple is not really going to be able to see much growth, there was dare I say almost a blind hype, a bubble regarding the value of Apple.
There is absolutely nothing poor about having a company with the market cap Apple has, they are cash rich, they have great revenue (who here wouldn't be stoked to own such a firm), but it simply doesn't match up to such a high price.

Right now I think the price is held up by speculation of an iWatch which will once again become the must buy and potentially create an industry which has never managed to exist before (discounting luxury mechanical, or Microsoft's smartwatch, or the one that was on KickStarter).
The question is, who ever thought it was worth $700 per share, where was that growth going to come from?

People had gotten used to Apple being so disruptive, the iPhone I laughed at when launched, £1800 GBP it cost in the UK with the cheapest contract applied. Sat as the computer geek for a hedge fund desk we all scoffed at it, do they not know thats 1/10th of the average salary in the UK? They demonstrated that they could create something which was considered essential. I know students who are scraping buy, in debt, on maybe £6k a year, who will still own the latest smartphone on a contract which puts an annual cost of £500. When out in a rural part of Thailand (trying to de-stress and live like a digital nomad) A local bar owner explained you can tell the girls who are for rent, they own an iPhone 4S. Apple realised people will sell their bodies for such a device.

I was one of the many people, perhaps with a little too much money for his toys to understand why someone would pay so much for such a thing.

Then they did it again. Tablet Computers where not new, but ones that sold, and really sold were.
If Apple are able to do this again, with the sucsess of the iPad in say the watch market, then frankly their current share price could be a steal.

I don't think they will be able too, but what did I know, I was wrong the first time.