Skip to main content

Market Overview

Trip Chowdhry: Investors Have 'Zero Confidence' In Apple's Management And Board

Share:
Trip Chowdhry: Investors Have 'Zero Confidence' In Apple's Management And Board

  • Shares of Apple Inc. (NASDAQ: AAPL) have fallen from the all-time highs of $134.54 to around $115, resulting in a loss of $110 billion in shareholder value.
  • Trip Chowdhry of Global Equities Research argued that investors have "zero confidence" in Apple's management and board of directors.
  • Chowdhry pointed out management's share buyback program is "not working."
  • Shares of Apple rose during Monday's trading session with momentum carried over into Tuesday as various media reports and analysts suggested that iPhone 6s pre-orders are "white hot" worldwide.

    In an e-mail to clients on Tuesday, Trip Chowdhry of Global Equities Research acknowledged that while Apple is setting itself up for a "strong" December quarter, investors have "zero confidence" in the company's management team and board of directors.

    Apple's Fall

    Chowdhry continued that Apple's stock has fallen from its all-time highs of $134.54 to around $115 billion, resulting in $110 billion in shareholder value being erased. While this is happening, the company's management has "done nothing" to address the "erosion" of shareholder value.

    Related Link: Tech ETFs Depend Heavily On Apple Earnings

    Meanwhile, Apple's management and board authorized a "huge" share buyback program that "is not working" as enterprise value/operating income "continues to decline." In addition, the company has transformed itself from a zero-debt company into a "debt-laden" company with more than $50 billion in debt that was allocated towards the "ineffective" stock buyback.

    Should Apple Repatriate?

    Finally, Chowdhry suggested that it might make sense for Apple to pay $30 billion in taxes and repatriate all of its cash held overseas as "taking debt to fund buybacks is insane."

    "Because of all the above, in-spite of Apple setting itself for a strong December Quarter, Investors have zero confidence in Apple's current Management and Board," Chowdhry concluded.

    Image Credit: Public Domain

    Latest Ratings for AAPL

    DateFirmActionFromTo
    Mar 2022BarclaysMaintainsEqual-Weight
    Feb 2022Tigress FinancialMaintainsStrong Buy
    Jan 2022Credit SuisseMaintainsNeutral

    View More Analyst Ratings for AAPL

    View the Latest Analyst Ratings

     

    Related Articles (AAPL)

    View Comments and Join the Discussion!

    Posted-In: Apple buyback Global Equities Research iPhone 6S Trip ChowdhryAnalyst Color Analyst Ratings Best of Benzinga

    Latest Ratings

    StockFirmActionPT
    SEDGB of A SecuritiesMaintains411.0
    PTLOPiper SandlerMaintains28.0
    AOUTLake StreetMaintains26.0
    RAPTPiper SandlerMaintains52.0
    OCXLake StreetMaintains6.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    SPAC
    Everything you need to know about the latest SPAC news.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com