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Apple stock drops over 10% in after-hours trading during Q1 earnings call

post #1 of 144
Thread Starter 
Despite posting a profit of more than $13 billion on record first quarter revenue of $54.5 billion, shares of Apple bled more than 10% of their value in after-hour trading on Wednesday as investors -- spooked by a hard miss on Mac sales and lack of earnings growth -- ran for cover.

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Source: Google


The precipitous decline followed a positive day of trading, and saw shares slowly shed roughly $50 of their value as chief executive Tim Cook spoke during Apple's ensuing conference call. As of press time, shares were trading down 9.83% to $463.49.

While Apple surpassed expectations on revenues of $54.5 billion, the company missed consensus estimates for Mac unit sales by almost a million units, or 20 percent. It also reported 47.8 million iPhone sales, a couple million less than analysts had been expecting.

In total, skittish investors shaved $50 billion in market capitalization from Apple, a figure that equates to the total market capitalization of several other prominent tech companies. As of press time, Apple's market cap is sitting at roughly $474 billion.

Adding to investors' worries was Apple Chief Financial Officer Peter Oppenheimer's announcement that future guidance would be modified to a more realistic model, a departure from past guidance considered by some to be overly conservative.

When asked about how the new guidance would be presented, Oppenheimer said an earnings range will take the place of Apple's traditional "single point estimate" of guidance that reflected a specific number. The new protocol will likely do away with huge earnings estimate beats.

"This quarter and going forward, we're going to provide a range of guidance that we believe we are likely to report within," Oppenheimer said. "No guarantees -- forecasting is difficult -- but we believe that we will report within that range."
post #2 of 144
UGH.
post #3 of 144

I'm sure analysts will be clamoring for Apple to pump out that cheap iPhone now to move more volume wise than focusing on the fact they still  made more money...

post #4 of 144

I really hope this keeps going so:

 

-stupid expectations disappear

-Apple goes private.

 

Meanwhile they will make billions after billions, while making the best products ever. At the end of the day, that's all I care... Products.

post #5 of 144

After hours trading is very light.  I think we'll see the stock come back most if not all of that 10%.  I think Wall Street knew revenue would be light, which is why the stock has been pummeled for the last few months.

 

I think what is really going on here is people that bought the iphone 4S can't upgrade for free until 18 months or more.  The device isn't enough better to justify paying full price.  I think Apple will continue to sell throughout the year as people's contracts are renewed.  I don't think people are leaving Apple for other devices.

 

The mac and ipad lineups will take off again when Apple switches to IGZO displays and produces higher resolution with better power usage and thinner devices.

 

This train has plenty of steam to keep going.  Wait for 9 more months.  

post #6 of 144
Quote:
Originally Posted by pedromartins View Post

I really hope this keeps going so:

 

-stupid expectations disappear

-Apple goes private.

 

Meanwhile they will make billions after billions, while making the best products ever. At the end of the day, that's all I care... Products.

Apple can't go private.  The market cap is way too high.  Who could possibly afford to buy it?

post #7 of 144
Quote:
Originally Posted by ash471 View Post

After hours trading is very light. 

Not exactly.

 

It usually is light, but not today. Almost 9 million, last I checked.

post #8 of 144
Consistent double digit growth and investors think the company is toast. Let's hope Cook and Ives don't cave in to analyst demands they make a dash for the bottom of the barrel. I don't even want to think about a $199.00 POS iPad or iPhone. If I want cheap crap I'll buy a Samsung phone running Android.
post #9 of 144

when CNBC give the so called genius -  Jeffrey Gundlach a mega-phone to preach doom & gloom and pending tutti fruity coloured iphones,  it scares people sadly.

post #10 of 144
Quote:
Originally Posted by ash471 View Post

Apple can't go private.  The market cap is way too high.  Who could possibly afford to buy it?

 

If the stock keeps going down they could buy themselves with the cash they have. Get the stock down to $200 and it could be done.

post #11 of 144
Quote:
Originally Posted by ifail View Post

I'm sure analysts will be clamoring for Apple to pump out that cheap iPhone now to move more volume wise than focusing on the fact they still  made more money...

Apple can't charge $600 for an iPhone in China and take any appreciable amount of the market.  I think what we are seeing is saturation of the iPhone in its target market.  Everyone that has the money to buy an iPhone has bought one.  If Apple refuses to expand its market, it will stop growing.  Apple may be fine with that, but many investors have a problem with it.

 

I don't think anyone really knows what Apple should do about its high priced high margin iPhone.  Do you risk compressing margins further by releasing an inferior device?  They may take market share, but make less money.  In the long term will they become irrelevant because they will price themselves out of the market?  It is a really tough call.  Call it either way and you'll have a 50:50 chance of being right.

 

Personally, I'm looking for growth in iPad and Mac.  The iPad actually competes fairly well on price.  The iPad is also more important from the standpoint of a software platform.  I think Apple will benefit from Microsoft causing additional fragmenting of this market.  iPad should continue to reign supreme. I'm confident Apple will also continue to advance this space with better screens and processors, better battery life, and smaller form factor.   

post #12 of 144

Makes sense, since Apple lost money this quarter and their sales dropped. 

 

Oh wait, they made $54,000,000,000 in revenue and sold 75,000,000 iOS devices (ie. premium products in their class) in a record quarter. 

 

On second thought, it's Apple, so yeah of course it dropped. 

post #13 of 144
Apple needs to ramp up innovation as barriers of entry for smartphones/tablets have been breached... the tipping point has begun.

mmmmmmmmmmmm....

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mmmmmmmmmmmm....

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post #14 of 144
Quote:
Originally Posted by Slurpy View Post

Makes sense, since Apple lost money this quarter and their sales dropped. 

Oh wait, they made $54,000,000,000 in revenue and sold 75,000,000 iOS devices (ie. premium products in their class) in a record quarter. 

On second thought, it's Apple, so yeah of course it dropped. 
Just wait until Amazon reports. We'll get a net loss and the stock will jump 10% the next day. lol.gif
post #15 of 144
Quote:
Originally Posted by lkrupp View Post

 

If the stock keeps going down they could buy themselves with the cash they have. Get the stock down to $200 and it could be done.

LOL ....I can't wait for that news headline::::::::::::Apple announces it will NOT be building a low cost iPhone and the stock plummets so low that Apple buys itself out with cash on hand.

 

The knuckleheads on Wall Street might actually be that stupid.

 

Although, Apple could never buy all its shares, because I'm not selling mine. 

post #16 of 144
Quote:
Originally Posted by Slurpy View Post

Makes sense, since Apple lost money this quarter and their sales dropped. 

 

Oh wait, they made $54,000,000,000 in revenue and sold 75,000,000 iOS devices in a record quarter. 

 

On second thought, it's Apple, so yeah of course it dropped. 

I agree with you, but it doesn't matter what we think. What matters is how the retards interpret the results. I've been doing better with my stock decisions ever since I started thinking like a retard.

post #17 of 144
Quote:
Originally Posted by ash471 View Post

LOL ....I can't wait for that news headline::::::::::::Apple announces it will NOT be building a low cost iPhone and the stock plummets so low that Apple buys itself out with cash on hand.

 

The knuckleheads on Wall Street might actually be that stupid.

 

Although, Apple could never buy all its shares, because I'm not selling mine. 


That's not really entirely up to you. But there's nothing to worry about.

post #18 of 144
The article mixed up Revenue and Profit. There is enough shit going on today - please get the basics right

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #19 of 144
Quote:
Originally Posted by Rogifan View Post


Just wait until Amazon reports. We'll get a net loss and the stock will jump 10% the next day. lol.gif

 

Wall Street obviously believes that the days of making money on hardware will soon be over. They want to see a recurrent revenue model (this is why they LOVE Google and especially Amazon with 1300+ PE ratio ).  Maybe they are right but they are betting on it too soon I think. In the mean time Apple should think how to spend their billions to turn the ecosystem into a money making business.

post #20 of 144
Okay the stock has been down now for several months. Wouldn't today's results and guidance already be priced into the stock? I mean what came out of the earnings call that was really unexpected and would warrant a 10% drop?
post #21 of 144
Quote:
Originally Posted by jason98 View Post

Wall Street obviously believes that the days of making money on hardware will soon be over. They want to see a recurrent revenue model (this is why they LOVE Google and especially Amazon with 1300+ PE ratio ).  Maybe they are right but they are betting on it too soon I think. In the mean time Apple should think how to spend their billions to turn the ecosystem into a money making business.
Who says their right? Why would Microsoft get into the hardware business if its a dying model?

Oh and Wall Street loves Samsung. Aren't they a hardware business?
post #22 of 144
In spite of how bad as the last couple months have been, I'm holding onto the stock because I think it's going to rise beyond the previous high after the new Apple TV debuts. Investors have been scared because Apple hasn't released any groundbreaking products since Jobs died. They need to see that Apple still has thatmagic touch.
post #23 of 144
Quote:
Originally Posted by jason98 View Post

 

Wall Street obviously believes that the days of making money on hardware will soon be over. They want to see a recurrent revenue model (this is why they LOVE Google and especially Amazon with 1300+ PE ratio ).  Maybe they are right but they are betting on it too soon I think. In the mean time Apple should think how to spend their billions to turn the ecosystem into a money making business.

Agreed, but there is some merit to the argument that hardware eventually becomes a commodity.  At some point my iPhone will be good enough that I just don't care about the next feature.  If people start using their iPhones for 5 years, Apple isn't going to be making very much money. 


Edited by ash471 - 1/23/13 at 5:28pm
post #24 of 144

It's a sweet day for shorts..iphone 5 is a flop and they have not sold any computers and the competitions are producing better  devices

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

Reply

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

Reply
post #25 of 144
Quote:
Originally Posted by wakefinance View Post

Investors have been scared because Apple hasn't released any groundbreaking products since Jobs died. They need to see that Apple still has thatmagic touch.

Steve Jobs died a little more than a year ago.

 

Even when he was alive, it wasn't like Apple was releasing groundbreaking, disruptive products every year. There were many years in between those disruptive products, like from the iPod, to the iPhone.

 

Apple has released more disruptive products than any other tech company, yet some fools who don't know much about anything expect Apple to re-invent the wheel every 12 months.

post #26 of 144
Quote:
Originally Posted by Rogifan View Post

Okay the stock has been down now for several months. Wouldn't today's results and guidance already be priced into the stock? I mean what came out of the earnings call that was really unexpected and would warrant a 10% drop?

Exactly, it's all bullshit. There were analysts yesterday saying Apple would report a loss. The whole thing is a joke. I'm going to get a margin call tomorrow. I've lost everything. I was never meant to be a stock trader. Time to get serious about focusing on my acting career.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
Reply
post #27 of 144
Originally Posted by daylove22 View Post
iphone 5 is a flop and they have not sold any computers and the competitions are producing better  devices

 

And because we've seen recently that it isn't obvious, even when it is, ¡.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #28 of 144
Quote:
Originally Posted by Ireland View Post

Exactly, it's all bullshit. There were analysts yesterday saying Apple would report a loss. The whole thing is a joke. I'm going to get a margin call tomorrow. I've lost everything. I was never meant to be a stock trader. Time to get serious about focusing on my acting career.
Hmm...not sure about reporting a loss but I did see some expectations that profit would be down 2%. It came in flat. At most companies that would be a huge beat. Not at Apple. 1oyvey.gif
post #29 of 144
Quote:
Originally Posted by stelligent View Post


That's not really entirely up to you. But there's nothing to worry about.

For Apple to force me to sell my shares, the company would need shareholder approval for the buyout (not just stock repurchase).  

post #30 of 144
I don't blame the stock for falling. After Steve Jobs, Tim Cook needs to prove Apple isn't turning into another Sony. And the veil of secrecy Apple keeps doest not provide any comfort to investors in addition to the gigantic mistakes that have been made - Maps, a corporate reshuffling of executives and production problems - you can't buy an iMac without waiting 4 weeks and I had to wait 6 weeks for my iPhone 5.

There's no way I would invest in Apple right now.
post #31 of 144
Quote:
Originally Posted by ash471 View Post

Apple can't go private.  The market cap is way too high.  Who could possibly afford to buy it?


all Apple needs is more record setting quarters and the price will be down in no time.

post #32 of 144
Quote:
Originally Posted by ash471 View Post

Apple can't charge $600 for an iPhone in China and take any appreciable amount of the market.  I think what we are seeing is saturation of the iPhone in its target market.  Everyone that has the money to buy an iPhone has bought one.  If Apple refuses to expand its market, it will stop growing.  Apple may be fine with that, but many investors have a problem with it.

Other flagship phones are $600 too. But those manufacturers also sell crappy $100 phones in addition to their flagship phones. No wonder they have insane market share numbers across the globe.

Let's say Apple eventually offers a cheaper product line for developing nations. The investors would probably find something wrong with that too.

I know companies are supposed to have "growth" but I'm still trying to figure out if that will be the cure to Apple's problems.

The only other company selling a ridiculous amount of smartphones is Samsung.... and they do it by having tons of products at various price points.

Apple is at a slight disadvantage by only having basically 3 phones that start at $450. (but as we've seen... they have no problems remaining profitable even if they don't capture a large share of the market)

Is a growing number of phones more important than a growing pile of cash?
post #33 of 144
Crazy thus quarter has 1 week less than last year and still the the highest EVER, and Wall Street don't like it lol! Crazy!!!
post #34 of 144
Originally Posted by Michael Scrip View Post
Is a growing number of phones more important than a growing pile of cash?


So far, for Apple, the answer has been no. And it's working splendidly for them and their employees.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #35 of 144
In an Apple style world, Apple no longer has a unique product to sell. That is the problem.
post #36 of 144
How is Windows doing? The evolution of Android (and whomever else jumps on the mobile OS bandwagon) will complete itself in about 1/2 the time it took Windows, as they are the same model, except MS profited more from license fees. Apple will grow more slowly, but enjoy much greater retention and expansion in both iOS and Mac OS markets. The frenzy to buy cheap phones with touch screens is just that, an infant market phase. As the market matures, consumers, enterprise and developers will undoubtedly seek security, stability, forward compatibility and functional value in their OS choices. Google has no present ability or future plan to provide that. Google & Partners are simply giving free touch screen candy to children right now. Microsoft has lost much of its credibility in the consumer space and is soooo late to the party. Apple has Mobile + Tablet + Desktop/Laptop + Smart Cloud Service + Living Room integration well evolved already.

How does Apple reach into the bottom of the mobile space barrel and grab some market share with a high probability of retaining it? License iOS 5 to HP and Dell and support the APIs for AppStore development in critical growth markets. Then license each past iOS as it evolves to snag share as needed. Apple faithful will stick to the latest and greatest. The rest will aspire to the latest and greatest.
post #37 of 144
Quote:
Originally Posted by Kamilton View Post

License iOS...

It wasn't the answer in 1996, it's not the answer now.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #38 of 144

at these levels, Apple can make a difference in decreasing the number of outstanding shares. And if they are smart, they will start buying back shares until the share price starts going up. The return per share goes up as the share price comes down. Where else can you earn 25% on your money?

post #39 of 144
Quote:
Originally Posted by Kamilton View Post

How does Apple reach into the bottom of the mobile space barrel and grab some market share with a high probability of retaining it? License iOS 5 to HP and Dell and support the APIs for AppStore development in critical growth markets. Then license each past iOS as it evolves to snag share as needed. Apple faithful will stick to the latest and greatest. The rest will aspire to the latest and greatest.

Apple is a hardware company. Unless they license iOS at $300 a pop, it ain't gonna happen.
post #40 of 144
Quote:
Originally Posted by scottkatz View Post

Where else can you earn 25% on your money?

 

NFLX? And in a matter of minutes and hours, forget about months or years. Up almost 36% in after hours today.lol.gif

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