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Apple has been trading down the last six months. Their iPhone sales in china keep dropping. You can’t exist like that in the current MBA driven stock market. h

Apple has been trading down the last six months. Their iPhone sales in china keep dropping. You can’t exist like that in the current MBA driven stock market. https://www.cnbc.com/amp/2024/01/08/apple-iphone-sales-in-china-fell-over-30percent-during-first-week-of-2024-jefferies.html https://www.cnbc.com/amp/2024/01/08/apple-iphone-sales-in-ch...

lbourdages 3y ago
It's still up 38% over the past year. China sales dropping is not surprising. There is a very strong tendency of the Chinese market being increasingly dominated by local players, such as in EVs. China has tech giants too, nowadays, and they're trying to get their share.
Terretta 3y ago
> You can’t exist like that in the current MBA driven stock market. Their supply chains and customers will evaporate? Or you mean they can't access the market for cash at valuations that make sense? Depending how they operate, only one of those is existential. Any number of firms that the markets soured on simply bought themselves back private and carried on existing.
- Podgajski 3y ago
  I mean in their mindset, if you’re not growing you’re dying. https://www.forbes.com/sites/forbeslacouncil/2018/03/23/in-business-youre-either-growing-or-youre-dying/amp/ https://www.forbes.com/sites/forbeslacouncil/2018/03/23/in-b...
  - Terretta 3y ago
    Right, but once you're past the startup phase you don't need the market as a seed investor, you use it as just a convenient (cheap) mechanism for M&A or employee comp. There are other synthetic equity mechanisms for each of these that also don't require cash or "the market". It's the "can't exist without" satisfying the MBAs that seems off. To the Amazon example, where they persistently show zero profit, that took Bezos convincing your MBAs that was fine. The option of telling the "counting things my textbook told me to count" people to ignore their textbooks is an option more CEOs could use, but don't. I just reject the notion a firm needs market approval in order to exist.

lbourdages 3y ago

It's still up 38% over the past year. China sales dropping is not surprising. There is a very strong tendency of the Chinese market being increasingly dominated by local players, such as in EVs. China has tech giants too, nowadays, and they're trying to get their share.

Terretta 3y ago

> You can’t exist like that in the current MBA driven stock market. Their supply chains and customers will evaporate? Or you mean they can't access the market for cash at valuations that make sense? Depending how they operate, only one of those is existential. Any number of firms that the markets soured on simply bought themselves back private and carried on existing.

Podgajski 3y ago
I mean in their mindset, if you’re not growing you’re dying. https://www.forbes.com/sites/forbeslacouncil/2018/03/23/in-business-youre-either-growing-or-youre-dying/amp/ https://www.forbes.com/sites/forbeslacouncil/2018/03/23/in-b...
- Terretta 3y ago
  Right, but once you're past the startup phase you don't need the market as a seed investor, you use it as just a convenient (cheap) mechanism for M&A or employee comp. There are other synthetic equity mechanisms for each of these that also don't require cash or "the market". It's the "can't exist without" satisfying the MBAs that seems off. To the Amazon example, where they persistently show zero profit, that took Bezos convincing your MBAs that was fine. The option of telling the "counting things my textbook told me to count" people to ignore their textbooks is an option more CEOs could use, but don't. I just reject the notion a firm needs market approval in order to exist.