Apple Posts $3.68 Billion Revenue, $430 Million Profit in Q4 2005

[~Shard~]

It's called institutional greed. They drive up the price through over-estimation, and let the small time investors absorb the shock of the stock drop. It's all orchestrated to get the most money from the dumb.

Pretty much - I've seen it happen a million times in my life playing with the markets....

 

[alaskaunbound]

im 16, but when i was 11 or so i told my mom to buy apple stock. she bought 300 (which is now 600) shares and has netted approx $21000. for some reason, i feel pain right now.


but i got an iPod nano for free yesterday, so i guess that helps. They have really good margins for apple.

 

[Evangelion]

I don't understand why investors hate this information and the stock has dropped so rapidly in afterhour trading... Anybody know?

It's simple, really (it really is). Investors expect certain figures from companies. As in, they estimate their future earnings and revenues, and the stock-price reflects those estimates. If the company doesn't meet those expectations (even though Apple posted great numbers, they were below the expectations), the stock-price will drop to adjust for the actual numbers. It doesn't matter what numbers Apple reported, what matter what number the investors were expecting. They expected more than Apple delivered, so the share-price dropped.

 

[Cooknn]

They expected more than Apple delivered, so the share-price dropped.

I've seen companies meet expectations and take a beating. I think the timing of todays announcement is perfect though. Steve knew the stock would fall, so he scheduled the biggest announcement of the year for the day after their 4th quarter earnings report. Should be interesting...

 

[wdlove]

Congratulations to Steve Jobs and Apple. So proud to have a relationship with Apple.