Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Jan 23, 2013, 07:45 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth




After reporting record-breaking quarterly revenue and profit earlier today, Apple's stock has taken a 10% tumble in after hours trading. Apple posted a $13.1 billion profit for the quarter this year compared to a $13.06 billion profit in the same quarter of last year, yielding flat growth year over year.

The flat growth, as pointed out by Apple, is largely because manufacturing costs have risen, even as revenue has risen 18%. The New York Times notes that analysts were worried that about Apple's profit margins, even after Apple warned that a significant overhaul of its product line would mean high manufacturing costs in the early lives of the products.
Quote:
The results arrived with an unusual level of anticipation, even for a company as high-profile as Apple, because of anxiety among some investors about Apple's ability to sustain its growth and create new hit products. Apple's stock has lost about a quarter of its value since September, erasing more than $170 billion of its market value.
Business Insider notes that even though Apple's holiday quarter in 2012 had a week less than it did in 2011 that sales growth still wouldn't be at the point that it was.

Apple's 10% stock decline gives it a current market cap of $463.49 billion and a loss of nearly $50 billion in market capitalization from worried investors. Despite analysts' and investors' worries of year-over-year growth, The Wall Street Journal's Tom Gara notes that Apple's losses in market cap today were roughly equal the value of two Research in Motions and two Nokias.

Article Link: Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth
MacRumors is offline   3 Reply With Quote
Old Jan 23, 2013, 07:48 PM   #2
shanmugam
macrumors 68020
 
Join Date: Sep 2008
Location: Blazer town!
no need to worry, it will be back up tomorrow around 10 or 1am
__________________
iPhone 5| iPad 4 | iPad mini | Nexus 7 | Kindle
Nov2012| Mac Mini| Core i7 2.3GHz QC | 330 240GB USB 3 | Viewsonic 21.5" 1920x1080
Sep2012|Toshiba 14" | i5 2.5Ghz 1366x768 |Win 7 | x-25M 120GB
shanmugam is offline   6 Reply With Quote
Old Jan 23, 2013, 07:48 PM   #3
Moshe1010
macrumors 6502a
 
Join Date: Jun 2010
I knew I had to buy some put options
Moshe1010 is offline   2 Reply With Quote
Old Jan 23, 2013, 07:51 PM   #4
iphone495
macrumors member
 
Join Date: Sep 2012
The Law of Large Numbers really does apply to EVERYTHING.
iphone495 is offline   5 Reply With Quote
Old Jan 23, 2013, 08:27 PM   #5
wiz329
macrumors 6502
 
Join Date: Apr 2010
Quote:
Originally Posted by iphone495 View Post
The Law of Large Numbers really does apply to EVERYTHING.
Do you know what the law of large numbers is?
wiz329 is offline   4 Reply With Quote
Old Jan 25, 2013, 09:09 AM   #6
iphone495
macrumors member
 
Join Date: Sep 2012
Quote:
Originally Posted by wiz329 View Post
Do you know what the law of large numbers is?
According to Investopedia, "When relating this concept to finance, it suggests that as a company grows, its chances of sustaining a large percentage in growth diminish. This is because as a company continues to expand, it must grow more and more just to maintain a constant percentage of growth."

Do YOU know what the law of large numbers is?

----------

Quote:
Originally Posted by iGrip View Post
How does the law of large numbers apply to this situation?


"...the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed."

http://en.wikipedia.org/wiki/Law_of_large_numbers
According to Investopedia, "When relating this concept to finance, it suggests that as a company grows, its chances of sustaining a large percentage in growth diminish. This is because as a company continues to expand, it must grow more and more just to maintain a constant percentage of growth."

----------

Quote:
Originally Posted by TMar View Post
Who trades at 1 am?
People with no life apparently.
iphone495 is offline   1 Reply With Quote
Old Jan 23, 2013, 09:44 PM   #7
iGrip
Banned
 
Join Date: Jul 2010
Send a message via ICQ to iGrip Send a message via AIM to iGrip Send a message via MSN to iGrip Send a message via Yahoo to iGrip Send a message via Skype™ to iGrip
Quote:
Originally Posted by iphone495 View Post
The Law of Large Numbers really does apply to EVERYTHING.
How does the law of large numbers apply to this situation?


"...the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed."

http://en.wikipedia.org/wiki/Law_of_large_numbers
iGrip is offline   1 Reply With Quote
Old Jan 24, 2013, 12:10 PM   #8
JAT
macrumors 603
 
Join Date: Dec 2001
Location: Mpls, MN
Quote:
Originally Posted by iGrip View Post
How does the law of large numbers apply to this situation?


"...the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed."

http://en.wikipedia.org/wiki/Law_of_large_numbers
This is investing. The Law, for investing, is that you can't expect 50% growth forever, because as the numbers get larger it is impossible to keep up high growth levels. Some investors expected exponential growth in perpetuity from Apple. Not possible, and people shouldn't be this crazy because percentage growth slows. But it's the stock market, people are crazy.

It is adapted from the quote you listed for this industry.
__________________
-- Spiky
JAT is offline   0 Reply With Quote
Old Jan 23, 2013, 07:54 PM   #9
TMar
macrumors 68000
 
TMar's Avatar
 
Join Date: Jul 2008
Location: Ky
Send a message via Yahoo to TMar Send a message via Skype™ to TMar
Quote:
Originally Posted by shanmugam View Post
no need to worry, it will be back up tomorrow around 10 or 1am
Who trades at 1 am?
__________________
I wish more wireless service provider owners posted here so talk about tethering would be taboo too.
.....Theft is Theft....
TMar is offline   17 Reply With Quote
Old Jan 23, 2013, 08:11 PM   #10
Bubba Satori
macrumors 68040
 
Bubba Satori's Avatar
 
Join Date: Feb 2008
Location: B'ham
Quote:
Originally Posted by TMar View Post
Who trades at 1 am?
A few billion people in Asia.
Bubba Satori is offline   8 Reply With Quote
Old Jan 23, 2013, 08:32 PM   #11
MrDc2
macrumors regular
 
Join Date: Jan 2013
Quote:
Originally Posted by TMar View Post
Who trades at 1 am?
Crack heads.
MrDc2 is offline   4 Reply With Quote
Old Jan 24, 2013, 02:02 PM   #12
bawbac
macrumors 6502a
 
Join Date: Mar 2012
Location: Seattle, WA
Quote:
Originally Posted by shanmugam View Post
no need to worry, it will be back up tomorrow around 10 or 1am
OUCH!


Apple Inc.
NASDAQ: AAPL - Jan 24 3:00pm ET
453.92
bawbac is offline   1 Reply With Quote
Old Jan 23, 2013, 07:51 PM   #13
parapup
macrumors 65816
 
parapup's Avatar
 
Join Date: Oct 2006
Apple is becoming Microsoft - or at least that's the fear. They sell a ton of their cash cow products and make good money - but that's just resting on their laurels. Where the hell is any innovation and disruption? People respect Apple for exactly that. Making profits on cash cows - that spot is for Microsoft.

The thing is they will sell some more iPads and iPhones but then when that's saturated they will badly need disruptive new product or at least leaps and bounds improvements to existing ones. And there are no winds of that for past couple years and counting.
__________________
MBA(2013) ; ThinkPad x220; Galaxy Note II; Note 10.1 2014 Edition
parapup is offline   29 Reply With Quote
Old Jan 23, 2013, 08:10 PM   #14
adnbek
macrumors 65816
 
adnbek's Avatar
 
Join Date: Oct 2011
Location: Montreal, Quebec
Quote:
Originally Posted by parapup View Post
they will badly need disruptive new product or at least leaps and bounds improvements to existing ones. And there are no winds of that for past couple years and counting.
Past couple of years? iPhone (2007), MacBook Air (2010), iPad (2010)
Please define "couple" because as far I remember, these disruptive new products only came out a few years ago.

I guess attention spans have become so short nowadays that 2010 seems like an eternity ago.
adnbek is offline   8 Reply With Quote
Old Jan 23, 2013, 08:16 PM   #15
1Alec1
Banned
 
Join Date: Jan 2013
Location: The Democratic Republic of Congo, you racist!
Quote:
Originally Posted by adnbek View Post
Past couple of years? iPhone (2007), MacBook Air (2010), iPad (2010)
Please define "couple" because as far I remember, these disruptive new products only came out a few years ago.

I guess attention spans have become so short nowadays that 2010 seems like an eternity ago.
"couple" = 2

----------

Quote:
Originally Posted by mdlooker View Post
So nothing's on the horizon that's causing great excitement which mean stocks will either stay where they are or drop more..am I right?

I need to learn more about this stuff.
You can't ever tell for sure unless you're an inside trader. In AAPL's case, if p''(t) is not greater than 0, there is a risk of analysts saying that Apple is doomed and causing selling. They're almost inside traders...

You can make money in the stock market without knowledge if you just pick the right companies based on instinct and hold them for a few years. I've actually pulled off day-trading with oil based on instinct somehow - it exploded like 40% in the weeks after I bought due to the Arab rebellions and dropped 15% the day after I sold. Not doing that again!
1Alec1 is offline   1 Reply With Quote
Old Jan 23, 2013, 08:17 PM   #16
Squilly
macrumors 68020
 
Squilly's Avatar
 
Join Date: Nov 2012
Location: PA
Hmm. I wonder if its a good time to buy. I'll see tomorrow...
Squilly is offline   0 Reply With Quote
Old Jan 23, 2013, 08:21 PM   #17
samcraig
macrumors G5
 
Join Date: Jun 2009
Quote:
Originally Posted by 1Alec1 View Post
$350 seems highly unlikely, but if that's your target buy point, I can see why you like it when Apple does stuff wrong.
Based on my comment why would you say that? You have no idea what my history of purchases/sales are.
samcraig is offline   0 Reply With Quote
Old Jan 23, 2013, 08:40 PM   #18
1Alec1
Banned
 
Join Date: Jan 2013
Location: The Democratic Republic of Congo, you racist!
Quote:
Originally Posted by samcraig View Post
Based on my comment why would you say that? You have no idea what my history of purchases/sales are.
The history doesn't matter. Whatever price someone buys at is the price from which he expects the stock to go up, and whatever price someone does NOT buy at is the price from which he expects it to go down... in theory. Of course, people would only trade the stocks they're looking at, and trade commissions limit who can trade and when, but you're apparently monitoring AAPL, and I just have to assume that you're buying in enough quantity to overcome $20 in commission.

Last edited by 1Alec1; Jan 23, 2013 at 08:46 PM.
1Alec1 is offline   1 Reply With Quote
Old Jan 23, 2013, 08:27 PM   #19
Michael Scrip
macrumors 68020
 
Join Date: Mar 2011
Location: NC
Quote:
Originally Posted by parapup View Post

they will badly need disruptive new product or at least leaps and bounds improvements to existing ones. And there are no winds of that for past couple years and counting.
Let's take Apple out of the picture for a moment.

Who else can we count on to deliver all these disruptive new products?
Michael Scrip is offline   4 Reply With Quote
Old Jan 23, 2013, 08:40 PM   #20
Bubba Satori
macrumors 68040
 
Bubba Satori's Avatar
 
Join Date: Feb 2008
Location: B'ham
Quote:
Originally Posted by Michael Scrip View Post
Let's take Apple out of the picture for a moment.

Who else can we count on to deliver all these disruptive new products?
Bubba Satori is offline   6 Reply With Quote
Old Jan 23, 2013, 08:42 PM   #21
Rogifan
macrumors G3
 
Rogifan's Avatar
 
Join Date: Nov 2011
Quote:
Originally Posted by Bubba Satori View Post
Yeah man I can't wait to get my Google glasses.
__________________
"I have a very optimistic view of individuals. As individuals, people are inherently good. I have a somewhat more pessimistic view of people in groups." -- Steve Jobs , Wired interview
Rogifan is offline   0 Reply With Quote
Old Jan 23, 2013, 09:47 PM   #22
flux73
macrumors 6502a
 
Join Date: May 2009
Quote:
Originally Posted by Rogifan View Post
Yeah man I can't wait to get my Google glasses.
Google glasses will be about as popular as Bluetooth headsets. Actually, with a price point that is supposedly $1500, it's going to be a lot LESS popular. I'm sure they'll be cool to us geeks, but no one else. Google glasses are not going to disrupt anything.
flux73 is offline   2 Reply With Quote
Old Jan 23, 2013, 08:42 PM   #23
JS82712
Banned
 
Join Date: Jul 2009
Quote:
Originally Posted by Bubba Satori View Post
lol really? if it's so ground-breaking, google wouldn't have spent an hour of their keynote showing off this thing only taking videos and pictures.
JS82712 is offline   2 Reply With Quote
Old Jan 23, 2013, 08:45 PM   #24
Bubba Satori
macrumors 68040
 
Bubba Satori's Avatar
 
Join Date: Feb 2008
Location: B'ham
I see I've ruffled some feathers.
That's never happened before.
Yet I was the only one to answer the question.
I'm a solutions kind of guy. I can't help myself.
Bubba Satori is offline   0 Reply With Quote
Old Jan 23, 2013, 08:47 PM   #25
1Alec1
Banned
 
Join Date: Jan 2013
Location: The Democratic Republic of Congo, you racist!
Quote:
Originally Posted by JS82712 View Post
lol really? if it's so ground-breaking, google wouldn't have spent an hour of their keynote showing off this thing only taking videos and pictures.
No, the picture refers to the man wearing the glasses, some random guy.
1Alec1 is offline   0 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Foxconn Seeks to Offset Slowing Apple Growth With Software and Licensed Apple Accessories MacRumors MacRumors.com News Discussion 93 May 28, 2013 09:48 PM
Apple Stock Jumps on Rumors of Stock Split at Tomorrow's Shareholder Meeting MacRumors MacRumors.com News Discussion 179 Mar 3, 2013 10:37 AM
Stock trading with Pro alexstjo Mac Pro 37 Feb 24, 2013 04:48 PM
Buying Apple stock on the first trading day of 2013? raptorstv Apple, Industry and Internet Discussion 21 Jan 23, 2013 05:48 PM
Sold Out in 1 Hr, Lol, Guess Apple's Stock Stock Price Tomorrow. Jazwire iPhone 1 Sep 14, 2012 03:26 AM

Forum Jump

All times are GMT -5. The time now is 04:51 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC