Why the hell is APPL down?

Discussion in 'Apple, Inc and Tech Industry' started by superspiffy, Sep 5, 2007.

  1. superspiffy macrumors 6502a

    Joined:
    Feb 6, 2007
    #1
    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? :mad:
     
  2. SimplyKen macrumors newbie

    Joined:
    Sep 2, 2007
    #2
    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.

    It made around 11% in the week prior, and dropped 3ish% today.

    the 9to5 rumors were out last week, it would have been a clear and easy time to buy. Then if you're really gutsy, sell them short at 12 noon EST to profit off the dive that it apparently tends to do. Could make 15% or so in a week's worth of work.

    Not too shabby.
     
  3. Zegna macrumors member

    Joined:
    Dec 4, 2006
    Location:
    North America
  4. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #4
    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.
     
  5. Cleverboy macrumors 65816

    Cleverboy

    Joined:
    May 25, 2007
    Location:
    Pocket Universe, nth Dimensional Complex Manifold
    #5
    http://online.wsj.com/article/SB118900567113618144.html
    People are silly.
    ~ CB
     
  6. doublebullout macrumors member

    Joined:
    Jul 23, 2007
    Location:
    Shreveport, LA
    #6
    Why is AAPL down? :rolleyes: Because investors don't base buy/sell decisions purely on dog-and-pony product shows. Recall that Apple advised investors that the 3rd quarter would include higher transition costs than usual. Cutting iPhone prices by a third is a risky move. So is the aggressive pricing structure for the rest of the new iPod line. Apple is banking on a runaway holiday buying season. It'll probably pay off, but there are no guarantees. 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.
     
  7. Masquerade macrumors 6502a

    Masquerade

    Joined:
    May 16, 2007
    #7
    'cause is not right to climb prices after a $299 drop.
     
  8. bousozoku Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #8
    Day traders and profit takers love to ride the wave and get out quickly. :D

    It's been few events where the stock price has come out in positive territory but the whole of the market was so down today that nothing good was likely.
     
  9. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #9
    A lot of AAPL's current valuation depends on the performance of the iPhone, about which everybody is guessing but nobody outside of Apple really knows. When the news came out a few days ago that Apple had garnered a very nice share of smart phone sales, AAPL soared. Lowering the price today looks to some like maybe they aren't hitting their sales mark. We'll know in a month how they've really done, when the numbers are released, and not a day before. In the meantime, the market breathes fumes.
     
  10. amac4me macrumors 65816

    amac4me

    Joined:
    Apr 26, 2005
    #10
    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).

    I wouldn't be too worried, Apple will make up for the loss in iPhone margins on other products such as the new iPods and Macs. Apple is more interested in market penetration at this point and will get as many iPhones into peoples hands as they possibly can.
     
  11. bousozoku Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #11
    The stock price was already down almost $3.00 before the iPod touch or the price drop on the iPhone was announced.
     
  12. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #12
    That's interesting, but the market was down all day. The price cut announcement did seem to create a major pile-on effect.
     
  13. SimplyKen macrumors newbie

    Joined:
    Sep 2, 2007
    #13
    … 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.

    Might have just as well said: If you think its going to go up, buy. If you think it'll go down, sell short.

    Wonderful investing advice.
     
  14. showtime macrumors 6502

    Joined:
    May 10, 2007
    #14
    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?
     
  15. IJ Reilly macrumors P6

    IJ Reilly

    Joined:
    Jul 16, 2002
    Location:
    Palookaville
    #15
    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.
     
  16. bousozoku Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #16
    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.

    I don't think it's a big mystery but some people like drama, I suppose.

    Apple has done so well, I don't think they're going to suddenly go out of business or lose most of the valuation. Then again, Chicken Little couldn't be convinced.
     

Share This Page