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Why is Apple Stock (AAPL) Stagnant Following iPhone Announcement?

D

dukeofspork

macrumors newbie
Original poster
Jun 8, 2010
1
0
Perhaps I'm not sufficiently versed in market trends, but I was sure that details of the new iPhone 4 announed yesterday at WWDC would spark huge interest in the consumer community and drive up the valuation of Apple stock (AAPL). Instead, it languished, losing $5 per share yesterday, and bouncing back a mere $2 today! What's the problem here?

Are there any traders out there who can provide some insight?
 
This always happens after a Keynote. As the stock market goes, it's the most predictable event in the whole arena.

Not to say that I know term for term why it happens, though... :p
 
dukeofspork said:
Perhaps I'm not sufficiently versed in market trends, but I was sure that details of the new iPhone 4 announed yesterday at WWDC would spark huge interest in the consumer community and drive up the valuation of Apple stock (AAPL). Instead, it languished, losing $5 per share yesterday, and bouncing back a mere $2 today! What's the problem here?

Are there any traders out there who can provide some insight?
Click to expand...

Why would it, the iPhone contains no new technology. It is an update to a present money stream not a new one. The iPad was a new stream. Apple stock generally tend to increase if a new income stream is on the cards.
 
G4DP said:
Why would it, the iPhone contains no new technology. It is an update to a present money stream not a new one. The iPad was a new stream. Apple stock generally tend to increase if a new income stream is on the cards.
Click to expand...

No new technology? What are you, the anti-Sherlock?

FYI, software is a technology? Otherwise there won't be software companies. Usability is technology, etc.
 
It is not real news since everyone knew it was coming so the price was factored in. Also, a new phone represents a replacement market, like a new MBP. The iPad didn't move the day of the official announcement but the stock did climb after that. The iPad represent a brand new market for Apple with the only wildcard being 'how many?' It was a lot so the stock move accordingly.

The is a an old adage for stocks, buy on the rumor and sell on the news ;)

As a side note I confess that an iPhone is attractive and maybe, just maybe, I will switch to an iPhone this year as I already have AT&T. If I decide to cancel my phone phone hard line and just use a cell phone as my only phone, then the iPhone will be the one. The problem with just a cell phone is that I can't pretend i am not home and screen my call like I do now.
 
2 can play this game.

Why is Google (GOOG) stock stagnant after announcement of iPhone 4?
Why is Microsoft (MSFT) stock stagnant after announcement of iPhone 4?

Actually their stocks have dropped in price after iPhone 4 keynote.
 
The drop in AAPL stock could also have nothing to do with APPLE. The Greek Debt Crisis right now is affecting all markets negatively. For example, last week there was great news that the Canadian and US economies had created thousands of new jobs, but the markets still all went down.
 
Consultant said:
No new technology? What are you, the anti-Sherlock?

FYI, software is a technology? Otherwise there won't be software companies. Usability is technology, etc.
Click to expand...

No, I just don't listen to the crap that Job's spouts every year when it comes to "magical" new devices.

Name something that is totally unseen before that has appeared in the new iPhone?
 
My guess: lack of any mention of Verizon. Adding Verizon as a carrier for the iPhone would presumably open a whole new potential market for iPhones, boost estimates of sales, revenue and profits and so bump up the stock price.

No Verizon = small (though not totally unexpected) disappointment for Wall Street. That meant all the announcements Steve made had already been factored into the current stock pricing. Ergo, no reason for the stock to rise appreciably.
 
As someone mentioned earlier, the stock price ramped up prior to the event. Everyone knew that WWDC was going to see things announced about the iPhone, so people started buying to get ahead of the expected price increase - based on the numerous rumours.

When the iPhone announcements didn't actually fulfil every single rumour, people who bought their stock based the expected features that were based on rumours sold their stock.... so the stock goes down.

Cheers
 
G4DP said:
No, I just don't listen to the crap that Job's spouts every year when it comes to "magical" new devices.

Name something that is totally unseen before that has appeared in the new iPhone?
Click to expand...

"Backlit sensor" camera. Brand new 2010 technology. See if any existing phone has it. :rolleyes:

So why are you doing here if you don't like what Steve Jobs has to say?
 
dukeofspork said:
Perhaps I'm not sufficiently versed in market trends, but I was sure that details of the new iPhone 4 announed yesterday at WWDC would spark huge interest in the consumer community and drive up the valuation of Apple stock (AAPL). Instead, it languished, losing $5 per share yesterday, and bouncing back a mere $2 today! What's the problem here?

Are there any traders out there who can provide some insight?
Click to expand...

The fact that Apple would release a new phone was widely anticipated. Traders were making educated guesses how good the phone would be, and he share price moved accordingly. After the announcement,traders don't see "there's a new phone", they see whether the phone is better, as good as, or not as good as anticipated. So if Apple produces a sensational new product, and that is what the traders expected, then the share price won't move.
 
Consultant said:
"Backlit sensor" camera. Brand new 2010 technology. See if any existing phone has it. :rolleyes:

So why are you doing here if you don't like what Steve Jobs has to say?
Click to expand...

Did I say phone? No.

I'm here because unlike most, I see Macs as a tool to earn a living, not as a fashion must have.
 
Give it some time... it is too early to judge.

I still would anticipate the next big thing for their stock is to unleash this beast of a phone to all carriers. ;)
 
G4DP said:
No, I just don't listen to the crap that Job's spouts every year when it comes to "magical" new devices.

Name something that is totally unseen before that has appeared in the new iPhone?
Click to expand...

Retina display, gyrometer, desktop class video editing.
Consultant said:
"Backlit sensor" camera. Brand new 2010 technology. See if any existing phone has it. :rolleyes:

So why are you doing here if you don't like what Steve Jobs has to say?
Click to expand...

Evo has this.
 
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