Apple’s quarterly results this week drew a flood of reactions – almost all negative. Given how well the company did under almost any absolute measure, this is odd, though, for Wall Street, not necessarily surprising.
But the arc of Apple’s rise and temporary fall tells a more troubling story about our current inability to maintain positive momentum about any aspect of our culture. We slay our heroes with casual abandon. Then we wring our hands about the absence of positive catalysts in our world today.
Apple’s stock, already in relative free fall from an all-time high of more than $700 a share, plunged nearly 12 percent on the news. The company has now lost 35 percent of its value in four months – which represents an astonishing $235 billion. This decline alone is larger than all but three companies in the S&P 500, and larger than the gross domestic product of more than 140 countries.
That equity collapse was echoed by deeply pessimistic analysis of the company in the financial and tech media. Jim Cramer of CNBC railed against the post-Steve Jobs management under chief executive officer Tim Cook for failing to communicate a compelling vision. Others were less kind, dismissing the company as having no pipeline, no vision and little growth. “I think this is a broken company,” said noted investor Jeffrey Gundlach.
Apple matters on multiple levels: it is still (barely) the world’s largest company by market cap; it has been cited as a beacon of American innovation, led by a rare visionary, Steve Jobs, who resurrected the company he’d founded in the decade before his death; its products have been more than just hardware devices – consumers view them as a talisman, defining identities and allowing people to manifest their personal and professional lives as they chose. In the past few years, its stock price has been a proxy for that enthusiasm.