Apple (AAPL) Morale Low, Employees Consider Jumping Ship

June 24, 2013 10:43 AM EDT
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Morale at Apple (Nasdaq: AAPL) is low and some employees are bailing for jobs at Google (Nasdaq: GOOG), LinkedIn (NYSE: LNKD), Facebook (Nasdaq: FB), and even PC-maker Hewlett-Packard (NYSE: HPQ), according to analyst Trip Chowdhry of Global Equities. The reason for the exodus is Apple's dismal stock price.

"Employees are viewing lower Apple Stock price as an indication of a bleak future for Apple," said Chowdhry, after speaking to a large number of employees at various tech conferences.

Interesting, from an employee perspective, Apple's recent increase to its dividend and stock buyback is having a negative effect on morale, since it has done little to lift the stock's price and is draining cash.

"After announcing a record $100 billion in share buy backs and dividends, Apple stock is close to 52 week lows, and this is causing serious employee retention problems at Apple . . .Returning the cash to shareholders has only caused a detrimental effect on the balance sheet and the stock price – some are even beginning to wonder where was the cash going," said the analyst.

Global Equities has a Overweight rating on Apple with a price target of $650.00

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $413.50 yesterday.

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