What’s wrong with Wall Street?

What’s wrong with Wall Street?

Sometimes I just don’t get the herd of investor-sheep out there. On the day that Apple introduces the most amazing iPod product line ever and even drops the price on the most successful smartphone ever to make it more accessible to even more people, the stock drops and then drops again the next day. Huh?

Are people actually listening to the Business Week’s FUD? Only in America do people greet a price drop as a problem. Listen up people: A drop in price in this case is an indication that the device is selling so well that Apple is willing to forgo insane profits in order to make good profits on more units moved.

On the other hand, if investing were easy, everyone would be a millionaire and I can look at this as an opportunity to shift more IRA money into Apple. That’s right, run scared Wall Street. I’ll buy up your underpriced shares.

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  • You should be glad you didn’t buy that iPhone when it first came out, Dom o’ mine.

    And I’m not sure about investors, but as a consumer I’d be a tad ticked off had I spent the extra $200 a few weeks ago. (I didn’t, but that’s not my point.)

    Did you hear, though? Jobs is offering a $100 store credit to folks who bought the thing before the price cut.

  • Well, I’m glad I didn’t buy it because I’m hoping for new features in a future version. But if you buy any consumer electronic device, you take your chances.

    Someone I know who bought it more than 15 days ago went into the Apple Store today and got a $200 credit just for asking.

    I think this guy has it right:

    One person on IRC said “I don’t have a ton of cash to burn, I could have used that $200.” Well apparently he did have the cash to burn and burn it he did. He gave it to Apple. Willingly. They didn’t twist his arm. They asked a price, and he paid it.

    But now the self esteem kicks in. He’s no longer joe cool on the block. In fact, any schmuck with $200 less can buy one and laugh at him.

    That is why people are upset. Being laughed at, poked fun it. It was all good as long as they had the phone that others could not afford. Now more people can and those early adopters are less special.

  • Yay – I’ve been wanting to pick up some Apple stock!

    Re: price drop – well, it’s just the famous “early adopter tax”. If an iPhone was worth $600 to you on August 15 (and why not, if you *could* afford it), why do you begrudge Apple dropping the price? The question was not IF Apple would drop the price, but WHEN.

    (We still can’t get ‘em here in Canada – :^( – telcos are much worse here)

  • In a way it reminds me of the parable of the workers in the vineyard who begrudged the master paying the latecomers for a full day’s work, the same as those who had been there all day.

  • Dom, I’d wait a while on those Apple shares.

    The DOW is in trouble and I suspect it’s going into a serious bear market.

    You’ll be able to buy those shares cheaper later.

    Good luck.