Same thing happened for when the iMac's came out. a buildup a few days beforehand, while rumors garner the interest, then the stock for some reason takes a dive during the announcement.After a freaking sweet new product lineup, why the hell is Apple stock down? Especially with the iPhone now being 400? Are people never satified?
Nope take a look at these boards! Fan boys and girls are all up in arms for the stupid 9-5 event...why? There was nothing else to complain about so we had to wait for an event to give us something to talk about.After a freaking sweet new product lineup, why the hell is Apple stock down? Especially with the iPhone now being 400? Are people never satified?
People are silly.Apple Inc.'s move to lop $200 off the price of the iPhone, unveiled as part of a revamp of the features, design and pricing of its family of portable gadgets, spooked investors as a sign of possible weakness, sending Apple's shares down 5.1%.
~ CBIn an interview, Mr. Jobs said Apple "absolutely" could meet its iPhone shipment goal this month without cutting prices. He said the cut in part reflects Apple's ability to reduce production costs, as well as a desire to price the product attractively during the holiday season. "It's time to be as aggressive as we can be," Mr. Jobs said. "If we're not, then we have to wait another year for the next holiday season."
The stock price was already down almost $3.00 before the iPod touch or the price drop on the iPhone was announced.I believe that the $200 price drop on the iPhone was the culprit. Investors looked at the drop as a squeeze on iPhone profit margins ... this trickles down to each share and hence the EPS (earnings per share).
of course if you thought AAPL was undervalued then you'd opt for a long position and simply buy. Who in the history of investing has ever short sold when they thought the stock was going to go up in the future? That's begging the question.Look at it this way: if you're convinced AAPL will go up in the future and you believe it's currently undervalued, then buy more AAPL now. Golden opportunity, and much smarter than shorting.
Neither company is going to talk revenue, but I'd guess the dollars involved are negligible. I'd see it more as a cross-promotional opportunity. Starbucks gets their name on millions of Apple products and (presumably) Apple gets their logo in thousands of Starbucks shops. A good deal for both companies, even if it doesn't go straight to the bottom line.Just a little question for those who know know a little more about this stuff: How will the partnership with sbux affect aapl and sbux?
Of course, but there is almost always (I noticed one time in the past few years when it did not happen) a buy up until the event and a sell off during the event.That's interesting, but the market was down all day. The price cut announcement did seem to create a major pile-on effect.