by Da'Von B.
Essentially they’re worthless, actually a majority of analysts are worthless, and that’s simply being honest. Very few analysts have been right about Apple, very few seem to understand how the company operates, many analysts make stuff up (seriously how many component checks tell them Apple is building a TV every year?). They basically can’t be trusted, they don’t provide a comprehensive analysis related to the company’s earnings, and they’re consistently wrong.
If fundamental analysis had any validity at all, if it was a tried and true scientific method, being performed by experienced and wise analysts, then you would think they would agree for the most part, or at least be in the same ballpark. But you can forget that, because 40 different analysts looking at the exact same data will come up with 40 different conclusions.
It should raise more than a few eyebrows when Amazon has a net loss in profits and Analysts perceive this as a good thing raising the stock, yet Apple breaks record profit (in U.S. history mind you) and the stock is downgraded based on some arbitrary reasoning that doesn’t make any sense or has no weight behind it. Head on over here to read more on why Apple analysts are substantially irrelevant yet control the most profitable tech company’s perceived value.