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Apple Stock Plunges 10% After Earnings Released

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Original poster
Apr 12, 2001
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Apple's stock has plunged over 10% in after hours trading since Apple announced record and expectation beating 3rd Quarter results, currently sitting at just under $150 after closing at $166.49.

Apple's stock price is notoriously volatile after quarterly conference calls due in part to Apple's habit of understating estimates for future quarters which they routinely beat. In addition to a low forecast, Apple's gross margin was lower than the year ago's quarter.

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ubercool

macrumors 6502a
Jan 31, 2008
972
23
Las Vegas
Can you believe it? Apple is on a $28 billion run rate and Macintosh sales were up 41%, but like with Mom and Dad, it's never good enough. :D
 
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zombitronic

macrumors 65816
Feb 9, 2007
1,115
6
They gave low guidance, as usual. And they'll beat it again, as usual. You'd think WS would be used to this by now.

But as it goes with Apple, sell on the news, buy on the rumors. Luckily, they gave us some new product rumor fodder.
 
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dvdiva

macrumors member
Mar 17, 2005
66
0
The fall has been triggered by Steve's health more than Apple's financial health.
 
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winterspan

macrumors 65816
Jun 12, 2007
1,008
0
Can you believe it? Apple is on a $28 billion run rate and Macintosh sales were up 41%, but like with Mom and Dad, it's never good enough. :D

Yeah, it's weird, but that's how its worked as long as I've followed Apple (approx 3.5 years). They always underestimate their next quarter, and the market freaks out, then they end up blowing away their projections. *repeat* lol
 
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Zadillo

macrumors 68000
Jan 29, 2005
1,538
39
Baltimore, MD
Yeah, it's weird, but that's how its worked as long as I've followed Apple (approx 3.5 years). They always underestimate their next quarter, and the market freaks out, then they end up blowing away their projections. *repeat* lol

Yeah, I've always wondered about that. Do investors just have really short memories or something? Cause you're exactly right; the articles even remind people that Apple has a history of conservative estimates.

Although I guess the smart investors are the ones who know this happens after every earnings call and snap up deflated shares (AAPL at $149 ain't bad at all).
 
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Sun Baked

macrumors G5
May 19, 2002
14,859
57
Maybe they we sending the buy orders to their brokers for AAPL using Me.com :p
 
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lozanoj83

macrumors 6502a
Mar 5, 2006
546
0
Southern California
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 2_0 like Mac OS X; en-us) AppleWebKit/525.18.1 (KHTML, like Gecko) Version/3.1.1 Mobile/5A347 Safari/525.20)

buy on the rumor and sell in the stock. Until Jobs' steps down from power I think it'll always be like this, but then again that's what makes Apple Apple.
 
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syklee26

macrumors 6502
Jul 26, 2005
444
558
it's just unbelievable how many stupid people invest their money in Apple stocks.

why da hell are they selling it when it's going to shoot up by the next financial data release date.

now I think I figured out how to invest in Apple stocks.

1. buy stocks after plummeting over 10% after quarterly result release.

2. buy stocks about 3 weeks before Steve Keynote

3. sell stocks on the day of keynote

4. sell stocks on the day of financial data release date.
 
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ChrisA

macrumors G4
Jan 5, 2006
11,790
571
Redondo Beach, California
It is just down in after hours trading, it will shoot up tomorrow when the market opens.

TEG

I predicted this would happen at 1:27 today on one of the threads linked to the front page. And no, I don't claim to be smart. This always happens. Apple stock goes down right after every earnings report and key note speech then moves back up later. It's a "sure deal". Buy two hours after and sell two days later.
 
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IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
I predicted this would happen at 1:27 today on one of the threads linked to the front page. And no, I don't claim to be smart. This always happens. Apple stock goes down right after every earnings report and key note speech then moves back up later. It's a "sure deal". Buy two hours after and sell two days later.

If only it was so simple.

How the markets react to Apple earnings reports depends on three main factors. The first is by how much they beat consensus. If it's less than 10%, then look out below. This time earnings were almost exactly 10% higher than consensus, which in the perverse way these things work, is not really enough to excite. The second is guidance. Apple always guides conservatively, but it seems the markets felt they were more conservative than usual. The third is the mood of the markets overall, over which Apple has no control. The mood of the market is sour. Very sour. Add it all up and you get running for the exits as if the sky has fallen, which of course it has not.
 
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jackjason

macrumors regular
Jul 30, 2006
158
0
If only it was so simple.

How the markets react to Apple earnings reports depends on three main factors. The first is by how much they beat consensus. If it's less than 10%, then look out below. This time earnings were almost exactly 10% higher than consensus, which in the perverse way these things work, is not really enough to excite. The second is guidance. Apple always guides conservatively, but it seems the markets felt they were more conservative than usual. The third is the mood of the markets overall, over which Apple has no control. The mood of the market is sour. Very sour. Add it all up and you get running for the exits as if the sky has fallen, which of course it has not.


I hope SJ won't die for another 30 years or so, and won't leave Apple for another 5 years or so..
 
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raythemoneyman

macrumors member
Jul 21, 2008
33
0
Tucson, Az. USA Earth
A Rising Ocean....

Most stock sectors are like an ocean. And a companies stock is just a ship on that ocean. When a sectors tide is on the way down.....all ships go with it. The market is rolling over out of tech stocks right now. It's time to buy APPLE a little at a time. ;)
 
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MacTheSpoon

macrumors 6502a
Jun 19, 2006
514
0
It's obnoxious short-term traders, making a play. Long term AAPL is undeniably kicking tremendous ass.

As for the health nonsense, basically to beat his cancer the guy had to have a major surgical procedure that makes it hard for him to digest stuff. The procedure is extremely effective, but he's going to look gaunt the rest of his life. There is no crisis, it's purely cooked up by hedge fund managers short AAPL looking to panic everyone.

He's looked like this since at least MacWorld in January, honestly, and he hasn't keeled over. If he was on his last legs there's no way the guy would be planning to keep working at Apple, as Oppenheimer said he was today.
 
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mixel

macrumors 68000
Jan 12, 2006
1,702
927
Leeds, UK
I look more gaunt than Jobs and I'm perfectly healthy.

He's getting older. One of the best ways to keep fending *off* cancer is with a low food intake, high vegetation diet. Which makes sense, him being a vegetarian(apart from the fish).

I've never thought he looks that ill. He *may* be, but not from his looks alone. A lot of healthy people look a lot worse than him. :D
 
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