AAPL Opens at $144, Sliding Nearly 10% After Major Revenue Cut and Down 35% Since Early November

[MacRumors]

AAPL has opened at $144 today on the stock market, with share prices sliding roughly nine percent after Apple lowered its revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year.

AAPL is down just over 35 percent since closing at $222.22 on November 1, just prior to its last earnings report.

In a letter to shareholders on Wednesday, Apple disclosed that its revenue will be lower than its original guidance for the first quarter of its 2019 fiscal year, coming in at approximately $84 billion. Apple originally guided for revenue of $89 billion to $93 billion in the quarter on November 1.

The letter said lower than anticipated iPhone revenue, primarily in Greater China, accounts for the entire revenue shortfall.

In an internal memo, Apple CEO Tim Cook said he will host an all-hands meeting with employees today at 9:30 a.m. Pacific Time at Apple's Town Hall auditorium on its Infinite Loop campus to answer questions about the shortfall.

AAPL was already dragged down by Apple's recent announcement that it will no longer disclose iPhone, iPad, and Mac unit sales starting with its next quarterly earnings report. The move sparked fears among some investors and analysts that Apple had something to hide, particularly regarding slowing iPhone sales.

Apple yesterday announced that it will report its earnings for the first quarter of its 2019 fiscal year on January 29.

Article Link: AAPL Opens at $144, Sliding Nearly 10% After Major Revenue Cut and Down 35% Since Early November

 

[Baymowe335]

I’d be buying shares here.

Apple didn’t buy back many shares in calendar Q4. Get all the bad news out and start buying back stock hard. They have $71B left in their buyback authorization from May 2018.

The numbers didn’t look that bad in other areas:

19% non iPhone business growth.
25% services growth.
50% wearables growth.
Double digit iPad growth.
Record iPhone revenues in US, Canada, Germany.

This is an iPhone in China story. They will have to fix that, but the world isn’t ending at Apple.

 

[UKPoliticsGuy]

Who will be Apple's CEO this time next year?

Hopefully not Tim.

 

[Kanyay]

this dropped harder than my last mixtape.

 

[asdavis10]

Honestly, Apple needed this kick in the rear. The market has spoken about the pricing of Apple's products (in relation to features). Time to innovate again and sell products at reasonable prices.

 

[hawkeye_a]

Who will be Apple's CEO this time next year?

Hopefully not Tim.

I'm not a fan of Tim, but looking at their upper management team, who's better? I can't see anyone; the last thing Apple needs is someone worse in charge.

 

[scrapesleon]

Oh it’s going really downhill now

 

[and 4096 others like this]

Lesson learned?

 

[jjhny]

I think Steve's inertia is starting to wear off. Tim would have been good until they found someone with vision to take over. Tim is a visionless, platitude machine.

 

[markfc]

Just like my bank account after christmas...

 

[FightTheFuture]

Time to innovate again and sell products at reasonable prices.

no company can innovate around a trade war.

 

[hawkeye_a]

I think Steve's inertia is starting to wear off.

This.

I'm surprised it lasted as long as it did. Tim Cook's Apple, is not the Apple I used to care about, that's for sure.

 

[scrapesleon]

Actually no

Buyback time. Apple didn’t buy back many shares in calendar Q4. Get all the bad news out and start buying back stock hard.

The numbers didn’t look that bad in other areas:

19% non iPhone business growth.
25% services growth.
50% wearables growth.
Double digit iPad growth.
Record iPhone revenues in US, Canada, Germany.

This is an iPhone in China story. They will have to fix that.

Buyback time. Apple didn’t buy back many shares in calendar Q4. Get all the bad news out and start buying back stock hard. They have $71B left in their buyback authorization from May 2018.

The numbers didn’t look that bad in other areas:

19% non iPhone business growth.
25% services growth.
50% wearables growth.
Double digit iPad growth.
Record iPhone revenues in US, Canada, Germany.

This is an iPhone in China story. They will have to fix that.

actually it’s time to stop buying

 

[mdatwood]

Just put in a buy order. Doubt it will hit my price to fill though :/

 

[leekil]

It's not just an Apple thing, more of a larger economy thing.

https://www.theatlantic.com/technol...s-to-look-at-apples-surprise-bad-news/579334/

 

[Baymowe335]

Actually no


actually it’s time to stop buying

Nice justification. Stocks move up and down. This wasn’t great for Apple, but their business didn’t just evaporate. They had some iPhone issues in China. The other numbers look great.

They are trading at 10X earnings and even Lowe ex-cash.

The right time to buy is usually precisely when it feels wrong to buy.

The wrong time to buy is when everything looks perfect. See when Apple traded at $230.

 

[adamjackson]

After being a lover of this company for 20 years, I finally bought my first share this morning. It's not a lot of money (less than AirPods or AppleCare for iPad). Low risk overall and I spend enough time reading and talking about Apple it's a long overdue purchase.

 

[scrapesleon]

Nice justification.

The right time to buy is usually precisely when it feels wrong to buy.

I mean better to invest in AR or VR tech that’s where it’s at now

 

[snowboarder]

Come on, we have the first openly gay CEO, that's important! Go Tim! Diversity and inclusion.

 

[Textime]

Your price is way too high you need to cut iiiiit.
Cut it. Cut it ..

 

[Baymowe335]

I mean better to invest in AR or VR tech that’s where it’s at now

They are going to buyback $71B more in stock between now and May. That’s what’s left of the $100B that’s been authorized and earmarked for buybacks. Buying back at lower prices is good for long term investors.

Apple is spending close to $14B/yr on R&D, including AR and VR.

 

[Rojaaemon]

Yes, but Apple is really green! And good at recycling!

 

[partsofspeech]

Stock price fluctuates all the time. What a temporary price drop tells us? Nothing!
[doublepost=1546526882][/doublepost]Apple, please don't buy back any stocks; use the money to lower prices of your products and apps! That will expand your customer base and build foundation for a better future. SJ had said that before.

 

[ftaok]

The last time Apple got crushed this badly was back in 2013. The stock went from $700 to $385 in about 6 months. It took about a year and half for AAPL to recover back to the $700 level ($100 after 7:1 split). But when it did, did a double-plus (up to $230).

We haven't quite hit the 45% drop of 2013. 45% would be about $126 (which is right around where @stylinexpat) shows a GAP in that chart of his. Hope we don't go too much lower. AAPL better tell a good story later this month.

HANG ON, it's gonna be a bumpy ride!

 

[navaira]

Who will be Apple's CEO this time next year?

Hopefully not Tim.

Angela Ahrendts will be the next Apple CEO.

Bookmark me.