Apple earnings come in flat at $13.1B on sales of 47.8M iPhones, 22.9M iPads and 4.1M Macs - Page 3

Stock will be down probably 10% tomorrow. Since the Q&A they've gone down even further.

Not hard to understand....

 

Apple was over valued.  No company could maintain the growth that Apple had in the last few years... Period...

 

This is a market correction, nothing else to see here....

 

The stock in comfortable in the $500/share range.  Growth from here will be steady and more realistic....

You are absolutely right. I did the subtraction and somehow applied the difference with the wrong logic.

Dood they are already down near 10%. This is unbelievable. There's 2.5 more hours to go in after.

But Google and Amazon aren't overvalued? Pfffft

Alright, bad news is that the stock is down 10% in after hours. Good news is that only has another ~$60 to go before it hits a major resistance level. Viva la Resistance!

 

Bad news? This is the time to buy, lads and lassies!

At what point would they halt trading?

Really.

 

And we should believe you because you told us this is what you were planning to do, or are you just having a wet dream? 

Hahahahahahaha

I thought the same thing too. But then, it occurred to me that the same quarter last year was one week longer. So EPS actually went up by close to 8%.

Enough name-calling. Someone's right, someone's wrong. The one in the right shouldn't have to resort to using anything but the truth, but both sides are doing it.

 

Cool your respective jets.

Apple's performance is not the problem. Apple's consumers are not the problem. Apple's products are not the problem. 

 

Wall Street and its base of "analysts" and their unrealistic, inflated expectations, based on flimsy evidence from "sources" and "industry checks", is most certainly the problem. 

They halted Google's last quarter didn't they? That was a different situation with the early numbers release but I still don't know why they halted GOOG's then.

No,

 

because only a fool would not have known that the stock would go either up or down with a nominal margin.

So, iso being long or short, the best option was to bet on both. I went for calls 530 and puts 480

Well... I'm disappointed. I was over-confident given the Verizon numbers and a sense of growth in China. I am excited about the iPad number though.

Doesn't look like Apple will be above $600 any time soon... but I don't worry that they won't be back above $500 shortly. I guess you have to have a capitulation for things to turn around...

I detailed some of that on page 2 of this thread.

• http://forums.appleinsider.com/t/155594/apple-earnings-come-in-flat-at-13-1b-on-sales-of-47-8m-iphones-22-9m-ipads-and-4-1m-macs/40#post_2263387

Calls at $530 and puts at $480?

 

That's not a straddle.

And when the stock was flying high because of Wall-Street's overly optimistic expectations, who was complaining then?  

Cool. Sorry, mate.  I didn't see it.

Bore repeating, it keeps getting overlooked.

Sorry if I have the wrong term.

Was pretty sure about it though.

Well, I won't mind tomorrow :))

Because when different market participants have different information, the market is broken. When everyone has the same information and is deciding to sell, there's no broken market. They don't close down trading just because what you wanted to happen to your stock didn't happen.

No worries. So much data from so many sources we can't possibly see it all.

Uh uh.... I am somewhat puzzled that you say bought a 'straddle' when a straddle (look it up) requires the same exercise price on the call and the put. Indeed, with 'nominal' movements, straddles lose money. They pay off when there are fairly sizable movements relative to exercise price.

 

Are you sure that you know what you're talking about? Everyone gets lucky once in a while, but I think you're trying to convince us you're also skilled. I am a bit suspicious of the latter, that's all.

 

Add: I notice that stelligent caught you out on that before I did. But I'll let my post be....

 

No, but Apple's stock has a long history of large moves after earnings...  It almost always moves 5%+ 

 

Those two stocks had not grown that much in such a short period of time.... Big difference...

You know, I wish that this website wouldn't just blindly copy and paste the bullshit interpretations and nauseating  media narrative using descriptive terms such as 'flat', 'miss', 'dissapointing', etc. Every single other website and techblog on the internet does it, and I used to think that AppleInsider had higher standards, but not anymore. Lately, its just been a constant vomit of the garbage that is crossposted everywhere. What the ratio of negative:positive articles about Apple on this site lately, like 10:1?

 

Apple just made revenues of $56,000,000,000 in a single quarter, the best quarter in their history (as usual). That's 11 zeroes. They just sold 47,800,000 iPhones. 22,000,000 iPads. 75,000,000 iOS devices. These numbers are alot of things (ie. stunning), but 'flat' and 'dissapointing' and 'misses' aren't those things. 

 

Let's have some fucking context and perspective here. Apple had a mind-blowing quarter, and just because they didn't hit some random, round number than some jackasses (analysts) who are always wrong about everything, dredged up randomly from their asses and decided that number was important, that doesn't decrease the merit of Apple's results. Maybe, on some other planet in some other universe there's a company that is performing better, but on this planet, no such other company exists. The original iPhone took a few months to sell a million, which was considered a great success. Now, 48 million in a quarter is dissapointing, even with a shitload of competition.  My, how spoiled and cynical we've become

LOL. The call just ended, and the bumper music was The Temptations:

 

"I know you wanna leave me but I refuse to let you go..."

It is meaningless to judge stock price growth independently of earnings and free cash flow growth.

 

How does AAPL compare on that dimension with AMZN and GOOG?

I just just asking a more complete question that I believed the other person was alluding to. Rogifan was seeking an answer that you replied to and didn't give. I didn't know that early release of information last quarter was different than Google's official release.

 

EDIT: Looking it up GOOG's share trades were halted when they had dropped 10%. Apple is hovering around that right now. Just a coincidence.

Edited by alcstarheel - 1/23/13 at 3:24pm

Over valued? By what rational measure?

The most common measure of stock value is P/E. Even before this 'correction', Apple's forward, cash-adjusted P/E was in the low 7 range while the average stock was almost 3 times that. By that standard, Apple's profits would have to drop by 67% just to get the P/E back to market levels - which would assume that Apple would grow at market rates.

WIth Apple's recent growth history, the stock should have been trading at a multiple HIGHER than the market as a whole - so it was already grossly undervalued.


When was the stock flying high? In terms of P/E, I can't remember a time when Apple's P/E was greater than the market average - so it has never been overvalued, at least by that measure.

This is the most hilarious part of people having a negative reaction (after filtering out the morons who want to create a different set of rules for AAPL). First, Apple already stated in the last earnings call that gross margin would shrink in this latest quarter. And they said why. Large capital investments for so many simultaneous product launches - iPhone 5, iPad mini, new iPods, and the new iMac. They already explained it three months ago. What they also explained is that gross margin would return over time.

 

But none of it matters. The fools drown out anyone with a clue. I think Apple's management thinks it's funny, and probably provides a competitive advantage. Many outsiders really believe Apple has problems, while Apple continues to release products that outsell every other product in their categories all while bringing in ungodly amounts of profit. Other companies chase market share, while Apple takes the market profit. Wall Street can play whatever game they want, I'll take the dividends and growth strategy which will ultimately be reflected in the share price. I'm glad Apple could care less about day traders.

Well, what can I say? When fans turn into blind fanatics, all arguments go to waste. Forum administrators here blocked and hid several of my posts where I clearly argued that AAPL will fall. They came up with lame excuses about spam filter blocking my posts, which is total BS. I have been on this forum for over 7 years and my posts had never been blocked before nor did they contain any links or other red flags. The administrators simply did not want to see any arguments about AAPL falling, irrespective of merit or logic they contained. I just wanted to inform those investors, who were interested in protecting their capital. As soon as iPhone 5 came out, it was clear to me and to many others that the stock will fall. I will not repeat details again for the fear of being blocked here but those interested might just google AAPL DNA Principles and see if they agree with 4 reasons as to why AAPL will experience further declines.

 

 

The problem is that it was over hyped due to recent success.  The projections were based on unrealistic growth curves....

 

While P/E is a good measure of current health of a company, the potential for profit growth is what really drives stock prices up or down.....

 

Apple is very healthy and will continue to grow.  While it is currently down to about $460.00 it will be back up to the $500.00 mark by the end of the week (maybe by the end of the day tomorrow).  Then you will see a more shallow but steady price growth.....

 

This is not a conspiracy as many here claim.  It is just how the market works...

Two points:

 

1) The saying goes "buy on rumor, sell on news". Stock often goes down after results are made public, even when the results are good.

 

2) The stock price of a company does not reflect how well a company is doing, it reflects how well people perceive it to be doing. P/E ratios mean very little.

That's impressive, I thought 50 million was optimisitic even though it followed the growth from before and they came pretty close to it. Even more impressive is they beat Samsung:

http://www.techspot.com/news/51294-samsungs-record-quarter-83-billion-profit-63-million-phones-sold.html

Samsung sold more handsets overall but the Galaxy S3 only accounted for 15 million and the Galaxy Note II, 8 million. The rest was made up from their other 35 models of phone. I guess people don't want those big screens after all. The iPhone 5 will easily make up over half of the total iPhones sold so the iPhone 5 outsold the S3 and Note II combined.

Apple's profit is higher too on the lower overall volume.

Looks like people don't want just an MP3 player any more. Still, they'll ride it out - I reckon one day the off-contract price of the iPhone will come somewhat in line with the iPods. With phone subsidies, it will appear cheaper to some people as they'd be paying for a mobile phone in any case.

Overhyped? Which planet are you living on? There's been nothing but negative news about Apple for months.

No it suggests that some minis were sold. If a majority were minis you would expect the drop to be closer to 85. This isn't alarming or surprising. The mini was a fresh new product. The regular was a small upgrade that added a faster processor and the lightning connector.

Well, Tim has got an even rougher year ahead of him.

 

All he has to do is show much better yoy performance in the next 3 quarters. Easy peezy.

 

(I wouldn't want to be in his shoes)