iPad - How the outside world is responding - Stock down 4%

[samcraig]

Now those that can't or won't be persuaded will no doubt write this statistic off. But it is telling of what impact the iPad is CURRENTLY having in the world of finance...

Yes - the tech stocks are being slammed today. But even so - if the iPad were that revolutionary and investors were convinced, the stock would at the very least hold steady.

http://finance.yahoo.com/q?s=AAPL

Apple is down over 4 percent the day after they announce the iPad.

 

[stewart715]

This is normal. The iPad is a new type of device. It is not a computer running Windows or Mac, like the tablets we know today. This worries investors, but when it is released in 60 days and is perceived very well, the stock will bounce back to their projected $250 per share.

 

[Zyniker]

The iPad is a long-term investment. It's not a short-term stock boosting product. Intelligent investors will look to the long-term impact of the iPad on Apple's overall revenue and profit. At any rate, present stock changes are mostly speculation. The product has two months yet before it's available to the public.

 

[GeekGirl*]

Did the same thing with the iPhone..guess that was a flop too

 

[samcraig]

If the stock went up 10 percent - would you say the same?

I don't think so. I think there's bias here.

I think if the stock jumped 10 percent today everyone would be saying that the world knows this device is going to explode into the marketplace.

Yes - it is too early in the long term. But as I wrote initially - it's very telling what the frame of mind the investor is in NOW just after the big announcement

 

[sfmountainbiker]

Any Apple investor (as I have been since the 90's) will tell you this is normal the day after ANY big Apple event. Lots of hype/hope leading up to the event that pulls in new investors to the stock then a sell-off the day after the event for short-term players to take in profits. This is actually one of the most consistent atributes of the stock market that I have ever witnessed. It's like clockwork everytime. I was expecting a pull-back to 197 today, and have been surprised by the resistance at 199.

 

[aristobrat]

AAPL almost always goes down after every major announcement. That's been the trend for years, IIRC.

 

[jacinto45]

If the stock went up 10 percent - would you say the same?

I don't think so. I think there's bias here.

I think if the stock jumped 10 percent today everyone would be saying that the world knows this device is going to explode into the marketplace.

Yes - it is too early in the long term. But as I wrote initially - it's very telling what the frame of mind the investor is in NOW just after the big announcement

You're completely wrong. The markets have known about the iPad since YESTERDAY. Yesterday, AAPL was up. In fact, AAPL has gone up a ton over the past few months, in part because investors were awaiting this new device. Yesterday's reaction proved that the market's very, very high expectations were met.

The price change today has nothing to do with the iPad--tech stocks are general are getting hammered, and absolutely no new information has come out about the iPad today that would have changed anyone's opinion of it relative to yesterday afternoon.

 

[VenusianSky]

I definetly think today's slip is in response to the iPad. It obviously is not a positive response. I don't see it having much affect on the stock right now for more than a day or two. Not until the thing is production and in stores for a number of months will we see its impact on the company.

 

[samcraig]

You're completely wrong. The markets have known about the iPad since YESTERDAY. Yesterday, AAPL was up. In fact, AAPL has gone up a ton over the past few months, in part because investors were awaiting this new device. Yesterday's reaction proved that the market's very, very high expectations were met.

The price change today has nothing to do with the iPad--tech stocks are general are getting hammered, and absolutely no new information has come out about the iPad today that would have changed anyone's opinion of it relative to yesterday afternoon.

I can't tell if you've had too much kool-aid or not. I'm not completely wrong. Today's price fluctuation is a market correction. Meaning expectations have been high - people were throwing money into Apple. Now, after the announcement - the stock is taking a hit.

Now as another member, who is at least logical with this scenario has stated that this is a pattern with Apple. And that certainly makes sense. But Jacinto - your comprehension of the stock market makes me wonder if you know how stocks work in the first place.

 

[lee.anderson]

It is a recurring pattern with Apple after keynotes. Generally the stock falls before edging back up.

 

[grovertdog]

Samcraig said: I can't tell if you've had too much kool-aid or not. I'm not completely wrong. Today's price fluctuation is a market correction. Meaning expectations have been high - people were throwing money into Apple. Now, after the announcement - the stock is taking a hit.

Market correction? Meh...

AAPL stock was up over 15% (to an all time high) since trading at 188.95 on 12/7/09. The stock also traded higher during and after the announcement yesterday as other posters have noted. Today's price movement is called "profit taking".

Between strong sales of computers, astronomical growth of the iPhone/iPod touch (over 3 million activations last quarter), and absolutely unprecedented performance of the app store (billions of apps sold, can you dig it?), it is inane to believe that the rollout of a new product would present investors with reason to believe future cash flows will suffer. As of now, the iPad is immaterial to the bottom line. Keep in mind AAPL is a $50 billion company.

Nice simplistic conclusion you've come up with, but without analytics or technical analysis backing your position, I must conclude you're talking out of your "you-know-what"....

 

[bigjnyc]

I can't tell if you've had too much kool-aid or not. I'm not completely wrong. Today's price fluctuation is a market correction. Meaning expectations have been high - people were throwing money into Apple. Now, after the announcement - the stock is taking a hit.

Now as another member, who is at least logical with this scenario has stated that this is a pattern with Apple. And that certainly makes sense. But Jacinto - your comprehension of the stock market makes me wonder if you know how stocks work in the first place.

It's definitely market correction coupled with investors who dont know what they are doing and panic when they see the price dropping. plus you have all these brokers and funds shorting because they know historically the price drops after an announcement. It usually straightens out in 3 or 4 days and goes back to normal.

 

[mrgreen4242]

This happens pretty much everytime they announce something. The stock goes up before the announcement and then it goes down afterward. Go look at the last 14-30 days and I bet it's up overall (I haven't actually checked... it's just always the same).

 

[colmaclean]

Go and check the historical data on Google Finance - Apple stock's value nearly halved in the month after the iPhone was unveiled before recovering.

 

[stewart715]

Again, this is completely normal. Next time Apple releases something, stocks will go down once again and news sources will report the drop. Then it goes back up. Happened with iPod touch, iPhone, MacBook Air.

 

[jacinto45]

I can't tell if you've had too much kool-aid or not. I'm not completely wrong. Today's price fluctuation is a market correction. Meaning expectations have been high - people were throwing money into Apple. Now, after the announcement - the stock is taking a hit.

Now as another member, who is at least logical with this scenario has stated that this is a pattern with Apple. And that certainly makes sense. But Jacinto - your comprehension of the stock market makes me wonder if you know how stocks work in the first place.

As others have pointed out, you are indeed wrong. If you were a trader, and wanted to buy or sell in response to how you thought the iPad would affect Apple's financials, would you wait 24 hours to do so? Of course not. Today's announcement has nothing to with the market's evaluation of the iPad. The market is down in general, and it's true that there is some profit-taking on AAPL in particular.

But the fact that remains that Apple stock was up more than 25 percent in months before the announcement, and on the day of the announcement it went up a little bit more. Why you want to pretend that natural fluctuation the day after the announcement means that the market doesn't like the iPad is beyond me.

 

[VenusianSky]

Day traders like to have news/material to trade on. I bet there are short sellers making a killing today, relatively speaking. It is the game that is the stock market.

 

[samcraig]

As others have pointed out, you are indeed wrong. If you were a trader, and wanted to buy or sell in response to how you thought the iPad would affect Apple's financials, would you wait 24 hours to do so? Of course not. Today's announcement has nothing to with the market's evaluation of the iPad. The market is down in general, and it's true that there is some profit-taking on AAPL in particular.

But the fact that remains that Apple stock was up more than 25 percent in months before the announcement, and on the day of the announcement it went up a little bit more. Why you want to pretend that natural fluctuation the day after the announcement means that the market doesn't like the iPad is beyond me.

You should let others argue your point. They're doing a fine job and being logical. You, however, make little sense. You can state that this is normal behavior based on history. You can't flat out say the dip doesn't mean ANYTHING.

 

[nukiduz]

As some of you have already said, this it the classic AAPL market reaction to a keynote. It is like clockwork, and that is why I bought some share after a presentation.

 

[ditzy]

Apples stock always goes down after an announcement. This neither proves success or failure. We will only know whether is succeeds or fails months after it has been released.

 

[fehhkk]

It's just the normal sell-off after a high, I don't think it has nothing to do with the iPad itself.

 

[bbydon]

All the analyst love it.
Also.... someone posted the thread of the reaction to the ipod.... it was the exact same. No one got it. years later here we are.

 

[gigadigit]

Classic buy on rumors, sell on news scenario.
3 upgrades from analysts today.

 

[jacinto45]

You should let others argue your point. They're doing a fine job and being logical. You, however, make little sense. You can state that this is normal behavior based on history. You can't flat out say the dip doesn't mean ANYTHING.

I didn't say it doesn't mean anything. There's some profit-taking going on, and the tech sector is down generally. What is so offensive about that?