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Global Equities Research Reports Apple Needs New Management

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On Saturday, Global Equities Research analyst Trip Chowdhry reported on a converged view on Apple (NASDAQ: AAPL) following Technology conferences, Summits and User and Group Meeting. Chowdhry reported that “Apple Shareholders, Apple Employees and the Developer Community at-large have lost confidence is Apple's current leadership.”

Shares of Apple are trading around $530.00, 23 percent below its high, as the S&P is up 27 percent and the Nasdaq is up 36 percent. The analyst wrote, “Tim Cook and Peter Oppenheimer have systematically erased $130 billion of shareholder value.”

Global Equities Research emphasized that Apple's CEO ad CFO should be replaced soon to prevent “further destruction” of shareholder value. The analyst noted that the best duo to take over management include Jon Rubenstein as CEO and Fred Anderson as CFO.

Related: Three Weekend Apple Headlines

Trip Chowdhry analyzed different explanations for the severe decline in Apple's valuation. Chowdry highlighted that Tim Cook's “compensation and incentives are for NOT maximizing the value of Apple stock until August 2016.” The analyst explained that with Apple's Board's sanction for Tim Cook to vest 40,000 shares in each year of 2014 and 2015, with 140,000 to vest in 2016, creates no incentive for Cook to create shareholder value until August 2016.

Global Equities Research added that Apple's developer community remain frustrated with Tim Cook due to the lack of a new product launch, noting no innovation under this CEO. Chowdry further noted that Apple is “out of Touch”, emphasizing Qualcomm's creation of their own proximity commerce platform called Gimbal. The analyst wrote, “Qualcomm, by being fast is well poised to own this multi-billion Proximity Commerce market and has beaten Apple in its own game, as Apple has been complacent.”

The analyst reported that Apple need a CEO who can re-invigorate the atmosphere of innovation and a CFO “who can increase shareholder value by fundamental innovation and not by gimmickry.” Global Equities Research suggested that replacing the CEO and CFO with Jon Rubenstein and Fred Anderson may be the best solution to “rescue” Apple from the sever devastation of shareholder value.

Shares of Apple closed at $530.44 on Friday.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2014Cantor FitzgeraldMaintainsBuy
Oct 2014BarclaysMaintainsOverweight
Oct 2014Morgan StanleyMaintainsOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Global Equities Research Trip ChowdhryAnalyst Color News Management Analyst Ratings

 

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