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How in the world can Apple's stock drop 3.5% with today's great news??

O

odedia

macrumors 65816
Original poster
I don't get analists sometimes. Apple releases a great consumer line of laptops, virtually completing the transition except for the PowerMac, yet the stock plunges. I guess it has something to do with the Creative lawsuit but come on! That's just redicilous.

Oded S.
 
odedia said:
I don't get analists sometimes. Apple releases a great consumer line of laptops, virtually completing the transition except for the PowerMac, yet the stock plunges. I guess it has something to do with the Creative lawsuit but come on! That's just redicilous.

Oded S.
Click to expand...

It's that goddam Creative lawsuit/FTC complaint. They're costing me thousands of dollars....even though this suit and the complaint will be dismissed in short order, Creative manages to make headlines and knock a couple billion off of Apple's market cap with a freaking gimmick.
 
DTphonehome said:
It's that goddam Creative lawsuit/FTC complaint. They're costing me thousands of dollars....even though this suit and the complaint will be dismissed in short order, Creative manages to make headlines and knock a couple billion off of Apple's market cap with a freaking gimmick.
Click to expand...

no... Apple has been sued constantly thro the years just like Microsoft.

The true reason is that the market believes Apple is entering the cheap computer market. The profit margin is largely lowered but the confidence of gaining market share to meet up such change of price is not strong enough, result in a total lost of profit yield, hence the falling share price.

think about it, in economic terms, macs are always price inelastic... maybe they try to expand their lines and change this, but the market doesn't react to what Apple want, they react to what people believes ... 🙄
 
It's because they dropped the PowerBook 12".

I could have told them it was a bad idea, but no, they didn't ask.
 
Probably because the MacBook has Intel GMA950 integrated graphics... ie it's of no use to gamers, engineers or anyone with serious realtime graphics needs; it sucks ass beyond belief.
 
EricChunky said:
no... Apple has been sued constantly thro the years just like Microsoft.

The true reason is that the market believes Apple is entering the cheap computer market. The profit margin is largely lowered but the confidence of gaining market share to meet up such change of price is not strong enough, result in a total lost of profit yield, hence the falling share price.

think about it, in economic terms, macs are always price inelastic... maybe they try to expand their lines and change this, but the market doesn't react to what Apple want, they react to what people believes ... 🙄
Click to expand...

No, actually they haven't been sued like Microsoft. Microsoft has been sued multiple times, and successfully for many billions of dollars, for violations of antitrust laws both in the U.S. and in Europe. Apple never has been in any remotely similar situation.

The market is worried over the Creative lawsuit. An injunction against Apple would be a disaster.
 
AltiVec guru said:
Probably because the MacBook has Intel GMA950 integrated graphics... ie it's of no use to gamers, engineers or anyone with serious realtime graphics needs; it sucks ass beyond belief.
Click to expand...

Um, that's what the MBP is for...🙄
 
The market already knew that Apple had to release these Macbooks soon. Therefore the price has already adjusted in the last few weeks. So any downward movement is probably just random or relates to some other news from Apple such as the lawsuit.
 
EricChunky said:
no... Apple has been sued constantly thro the years just like Microsoft.

The true reason is that the market believes Apple is entering the cheap computer market. The profit margin is largely lowered but the confidence of gaining market share to meet up such change of price is not strong enough, result in a total lost of profit yield, hence the falling share price.

think about it, in economic terms, macs are always price inelastic... maybe they try to expand their lines and change this, but the market doesn't react to what Apple want, they react to what people believes ... 🙄
Click to expand...

Wow you sounded just like my Micro economics teacher...dam she was right after all...
 
There is a concept in the market,"Buy on rumors,sell on news."

This news/rumor of Macbook was already built into the Apple stock price.

Aren't markets all over the world facing a meltdown at the moment ?
 
2 enternal stock market rules:

1. stocks trade on future expectations not current actualizations
2. the masses are the as$es.
 
AltiVec guru said:
Probably because the MacBook has Intel GMA950 integrated graphics... ie it's of no use to gamers, engineers or anyone with serious realtime graphics needs; it sucks ass beyond belief.
Click to expand...
I didnt buy my iBook due to its grapicsm and i wont be buyinga MacBook due to its graphics..

if i wanted a laptop with good graphics id get a Pro, simple.
 
AltiVec guru said:
Probably because the MacBook has Intel GMA950 integrated graphics... ie it's of no use to gamers, engineers or anyone with serious realtime graphics needs; it sucks ass beyond belief.
Click to expand...

What is with people and this damned graphics card??

Yes, The GMA 950 Is crappy.
Yes, The GMA 950 is no good for games.
Yes, the GMA 950 does suck up your RAM. Buy some more.

However...

The GMA 950 does not use your CPU power. The GMA 900 had a GPU core @ 350Mhz, and the 950 has one of 400Mhz..... a real core, seperate from your CPU.

The GMA 950 does support Quartz, Quartz Extreme, CoreImage as well as 32 bit colour, with display spanning and mirroring at HD resolutions.

The only thing this card will not do particularly well is games/some 3D work. It is fine for CPU based rendering, autocad type work, Photoshop, Apeture etc....

Remember when everyone was saying how fast those Pentium based dev machines were?
Well they were slower CPU's AND they had only GMA 900 Graphics in.
 
n-abounds said:
The market already knew that Apple had to release these Macbooks soon. Therefore the price has already adjusted in the last few weeks. So any downward movement is probably just random or relates to some other news from Apple such as the lawsuit.
Click to expand...

It's the lawsuit. If Creative is granted an injunction against Apple, they could be forced to stop selling iPods -- immediately. If this happens, expect AAPL to drop by 50% in a matter of hours, if not minutes. I don't think they'll be granted an injunction, and neither does the markets apparently, but that doesn't mean that the markets aren't nervous about how this suit will play out.
 
So buy some more and ride it back up to $70ish? Will it go back up or keep falling?


[edit] This shows how little I know about the stock market. I thought it would go up on the MB announcement, but it goes down 3%.
 
buffalo said:
So buy some more and ride it back up to $70ish? Will it go back up or keep falling?


[edit] This shows how little I know about the stock market. I thought it would go up on the MB announcement, but it goes down 3%.
Click to expand...

There was one analyst a while back who expected Apple to go to 101. He might have adjusted the target since then.

Might be an OK time to buy, depends on your intentions. If you will be retiring in the next fifteen years, I wouldn't be buying individual stocks. (IMHO)
 
This happens pretty much every time a new Apple product is announced. You could probably make a decent living following Apple rumors and shorting the stock before announcements.
 
swingerofbirch said:
There was one analyst a while back who expected Apple to go to 101. He might have adjusted the target since then.

Might be an OK time to buy, depends on your intentions. If you will be retiring in the next fifteen years, I wouldn't be buying individual stocks. (IMHO)
Click to expand...

The last time I checked the consensus analyst target price, it was in the $85-90 range. But these projections can never account for random hits, like the Creative lawsuit.

BTW, the markets rarely care about the announcement of new products by any company. The markets only care about whether they sell.
 
wordmunger said:
This happens pretty much every time a new Apple product is announced. You could probably make a decent living following Apple rumors and shorting the stock before announcements.
Click to expand...

Most new product announcements are not trumped by the filing of potentially devastating lawsuits. Personally, I haven't noticed any consistent impact of new product announcements on stock price. Really, there should not be any.
 
There is ALSO fear about the future sales of the ipod, as the ipod/itunes won't hold a monopoly over their corner of the market for very long. There was a mainstream announcement last week that Microsoft is teaming up with MTV on a project called "merge":

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/05/15/IPOD.TMP

In effect, Microsoft and team are trying to mimic iPod and iTunes so that all the pieces fit together better and make it easier to use.
Click to expand...

Microsoft mimics Apple? NEVER.

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