The headline is just wrong. Totally misleading spin. It borders on the "invented" by creating an imaginary timeline and motivation? By positing that the iPad was a disappointment, and Jobs "lashed out" at competitors in response, they're painting a picture that completely sidesteps (and invents) the reality? it was a knockout quarter for Apple, by any measure!
What hooey! So long Reuters?? you WERE once an organization I could depend on for less "invented" financial news?? not any more.
That?s a good point. It?ll open up over $300 and likely rise today do the after hours drop. For long term investors it?s a non-issue, and if you are short term investor you should have accounted for this very likely eventuality.
I reset my stop to $300 for Apple. If you don't keep rolling stops on your positions then you get what you ask for. It's October, an election year, and the economy is showing a lot of volatility. I woke up shocked that I had been stopped out of my silver position which had crashed 5% over night due to an interest rate move by China. I could be mad but it did what it is supposed to do.
Likewise while Apple may be doing what it is supposed to do, it still exists with the rest of the world. Don't let betting on Apple stop you from ignoring the morons out there.
Why was it glossed over that Apple sold more Macs than any quarter ever?
I know the iThings are very sexy, but when Apple sells Macs, it sets them up to continue to generate tons of revenue from the expanding consumer base. These are buyers of iLife, iWork, OS X Lion, AppleCare, Magic Trackpads, etc. and Mac users are a lot more likely to buy Airport accessories and AppleTV than PC users.
The fact that Macs are flying off the shelves in record numbers even though Apple is not advertising them much at all points to a much more powerful trend: Macs are capturing mindshare among the public and this will be great for Apple going forward.
I reset my stop to $300 for Apple. If you don't keep rolling stops on your positions then you get what you ask for. It's October, an election year, and the economy is showing a lot of volatility. I woke up shocked that I had been stopped out of my silver position which had crashed 5% over night due to an interest rate move by China. I could be mad but it did what it is supposed to do.
Likewise while Apple may be doing what it is supposed to do, it still exists with the rest of the world. Don't let betting on Apple stop you from ignoring the morons out there.
If you had that stop in at market open, you might have sold... despite it's quick stabilization at 306. A short-term trader manages risk by cutting their position in half before the call, a strategy that would have fared quite well this quarter... but not every quarter.
Me... I got lucky. Replaced half of my November calls sold yesterday with January 2013 calls today. I had hoped for a good entry point for longer-term options and I got it.
I don't get where the iPad expectations came from. They were building 1 million/month, in early sept it was reported that they just expanded production to 2 million/month. How were they expected to have sold significantly more than 4 million?
They sold 4.1 million mostly selling them just in the apple store and select best buys. They have been expanding to the rest of best buy, walmart, target, AT&T, Verizon, etc. It was also reported in september that Apple was going to further increase production to 3 million/month this month. how does that kind of growth get spun into a negative?
Thanks; I had thought they hit 2MM units in August. Did they say how many weeks' inventory they had? Sounds like they are just at a couple weeks right now.
So, we should see 13-14MM units through December (6-7 in the quarter) if all goes well and production continues to ramp up.
The only thing that scared me a little was the margin drop. I don't see it as a problem, but it is one of those things that impacts the large number theory negatively.
Obviously I don't know what's going to happen today or over the next few days, but keep in mind that the "big drop" overnight did nothing except erase the gains in stock price over the past two days. That's right, AAPL surged 6% in the two days before the announcement. So falling back to a price of 300 (an all time high, reached for the first time last week) isn't exactly a crash. Wall Street adjusts expectations very quickly, so their "disappointment" is relative to their expectations yesterday, not their expectations from two months ago.
In other words, don't sweat it. If Apple continues to perform, the investment will continue to pay off.
Excellent post! Worth quoting whole again!
People seem to take these stock fluctuations personally which is rather odd.
Apparently, enough people were betting that the stock would go down based on the lower margin (I'm sure that is more of an issue that unmet iPad sales expectations) and that sent prices down. It can easily be a shirt-term self fulfilling prophesy that becomes a blip in the long run. Unless you are a day trader, don't worry about it. (And if you are a day trader and you didn't see this as a high possibility, well, good luck with what's left of your money!)
I'm not sure what it opened it, but the early low was 300.0 and it's already back up to 305.32 after 5 minutes, I wouldn't be at all surprised to see it end up closing up for the day.
back up to 312 now. I wonder how many of these writers bought apple stock this morning.
That's insane - I remember that when iPad started earlier this year, people thought apple would sell 2-3 million in 2010. They sold over 7 million already and will probably sell around 10 million by the end of the year. How can this be something called not meeting the expectations!!
Precisely. It's just bollox for stock manipulation. I wondered how the muppets would spin it.
Precisely. It's just bollox for stock manipulation. I wondered how the muppets would spin it.
Straight from the news blurb line-up on Goog Finance:
US Stocks Decline as Apple's Outlook Trails Forecasts
BusinessWeek - 46 minutes ago
By Nikolaj Gammeltoft Oct. 19 (Bloomberg) -- US stocks fell from five-month highs after Apple Inc. forecast profit that missed analysts' estimates and China unexpectedly raised interest rates.
read:
We're giving you straight FUD rookies. Sell, sell, sell so that we can scoop up your shares at low low prices and make bundles of money!
I'm not sure what was more pathetic, the article or the comments.
The ignorance and arrogance seen in both are almost bizarre.
I read the same article last night. Simply mind blowing. Completely negative wihtout a single positive comment. No mention of the 70% increase in sales. As for the comments, well, they are irrelevant. These are people who's entire self-worth is invested in waiting for Apple to fail. The fact that they've kept waiting for the last decade without results is pathetic to say the least. This article drew them in like moths around a candle, much like the trolls here.
back up to 312 now. I wonder how many of these writers bought apple stock this morning.
That raft of negative stories designed to drive the stock into the ground borders on either collusion or straight-out stock manipulation. Are these analysts and reporters meeting with Goldman Sachs to trip up AAPL and get the jump on everyone? My 'spidey sense' is tingling...
Reiner noted that the iPad had a strong quarter, outselling the Mac. But that wasn't enough, as Wall Street analysts expected Apple to hit around 4.8 million sales for the three-month span.
Dang it. You FanBoys aren't pulling your weight. Get out there and buy more iPads! Heaven forbid they don't sell as many as expected.
That raft of negative stories designed to drive the stock into the ground borders on either collusion or straight-out stock manipulation. Are these analysts and reporters meeting with Goldman Sachs to trip up AAPL and get the jump on everyone? My 'spidey sense' is tingling...
Once again we learn that it's all a conspiracy. All I can suggest is, get a grip. If you can't get a grip, please try harder.
So these same 'experts' who anticipated that apple would struggle to sell even a million iPads are now cautious because only four or so million are selling per quarter?
Why are these idiots even given a public platform to make their ridiculous statements from? They have no clue about anything, merely respond to actual figures after the event and make wild predictions based on vested interest and a complete lack of technical understanding.
Did ANY of their predictions for the last year come to fruition?
Comments
This is the one that really gets me:
http://www.reuters.com/article/idUST...S+%2F+Top+News
The headline is just wrong. Totally misleading spin. It borders on the "invented" by creating an imaginary timeline and motivation? By positing that the iPad was a disappointment, and Jobs "lashed out" at competitors in response, they're painting a picture that completely sidesteps (and invents) the reality? it was a knockout quarter for Apple, by any measure!
What hooey! So long Reuters?? you WERE once an organization I could depend on for less "invented" financial news?? not any more.
That?s a good point. It?ll open up over $300 and likely rise today do the after hours drop. For long term investors it?s a non-issue, and if you are short term investor you should have accounted for this very likely eventuality.
I reset my stop to $300 for Apple. If you don't keep rolling stops on your positions then you get what you ask for. It's October, an election year, and the economy is showing a lot of volatility. I woke up shocked that I had been stopped out of my silver position which had crashed 5% over night due to an interest rate move by China. I could be mad but it did what it is supposed to do.
Likewise while Apple may be doing what it is supposed to do, it still exists with the rest of the world. Don't let betting on Apple stop you from ignoring the morons out there.
I know the iThings are very sexy, but when Apple sells Macs, it sets them up to continue to generate tons of revenue from the expanding consumer base. These are buyers of iLife, iWork, OS X Lion, AppleCare, Magic Trackpads, etc. and Mac users are a lot more likely to buy Airport accessories and AppleTV than PC users.
The fact that Macs are flying off the shelves in record numbers even though Apple is not advertising them much at all points to a much more powerful trend: Macs are capturing mindshare among the public and this will be great for Apple going forward.
Where can I sign up for that sweet analyst cash?
This is the one that really gets me:
http://www.reuters.com/article/idUST...S+%2F+Top+News
I'm not sure what was more pathetic, the article or the comments.
The ignorance and arrogance seen in both are almost bizarre.
I reset my stop to $300 for Apple. If you don't keep rolling stops on your positions then you get what you ask for. It's October, an election year, and the economy is showing a lot of volatility. I woke up shocked that I had been stopped out of my silver position which had crashed 5% over night due to an interest rate move by China. I could be mad but it did what it is supposed to do.
Likewise while Apple may be doing what it is supposed to do, it still exists with the rest of the world. Don't let betting on Apple stop you from ignoring the morons out there.
If you had that stop in at market open, you might have sold... despite it's quick stabilization at 306. A short-term trader manages risk by cutting their position in half before the call, a strategy that would have fared quite well this quarter... but not every quarter.
Me... I got lucky. Replaced half of my November calls sold yesterday with January 2013 calls today. I had hoped for a good entry point for longer-term options and I got it.
I don't get where the iPad expectations came from. They were building 1 million/month, in early sept it was reported that they just expanded production to 2 million/month. How were they expected to have sold significantly more than 4 million?
They sold 4.1 million mostly selling them just in the apple store and select best buys. They have been expanding to the rest of best buy, walmart, target, AT&T, Verizon, etc. It was also reported in september that Apple was going to further increase production to 3 million/month this month. how does that kind of growth get spun into a negative?
Thanks; I had thought they hit 2MM units in August. Did they say how many weeks' inventory they had? Sounds like they are just at a couple weeks right now.
So, we should see 13-14MM units through December (6-7 in the quarter) if all goes well and production continues to ramp up.
The only thing that scared me a little was the margin drop. I don't see it as a problem, but it is one of those things that impacts the large number theory negatively.
Who were those "wall street analysts"?
Most idiot analysts predicted market failure for it when it was announced, and now suddenly 4+ millions are not enough?
My most interesting thought is that they will buy Facebook.
Think about what they could do with it:
Full iAds integration.
Full Ping integration.
Music streaming and discovery.
Itunes TV and movie "like" and ratings.
Clean up the privacy issues and build some user faith.
I don't really think this will happen, but it would be interesting.
Obviously I don't know what's going to happen today or over the next few days, but keep in mind that the "big drop" overnight did nothing except erase the gains in stock price over the past two days. That's right, AAPL surged 6% in the two days before the announcement. So falling back to a price of 300 (an all time high, reached for the first time last week) isn't exactly a crash. Wall Street adjusts expectations very quickly, so their "disappointment" is relative to their expectations yesterday, not their expectations from two months ago.
In other words, don't sweat it. If Apple continues to perform, the investment will continue to pay off.
Excellent post! Worth quoting whole again!
People seem to take these stock fluctuations personally which is rather odd.
Apparently, enough people were betting that the stock would go down based on the lower margin (I'm sure that is more of an issue that unmet iPad sales expectations) and that sent prices down. It can easily be a shirt-term self fulfilling prophesy that becomes a blip in the long run. Unless you are a day trader, don't worry about it. (And if you are a day trader and you didn't see this as a high possibility, well, good luck with what's left of your money!)
I'm not sure what it opened it, but the early low was 300.0 and it's already back up to 305.32 after 5 minutes, I wouldn't be at all surprised to see it end up closing up for the day.
back up to 312 now. I wonder how many of these writers bought apple stock this morning.
That's insane - I remember that when iPad started earlier this year, people thought apple would sell 2-3 million in 2010. They sold over 7 million already and will probably sell around 10 million by the end of the year. How can this be something called not meeting the expectations!!
Precisely. It's just bollox for stock manipulation. I wondered how the muppets would spin it.
Precisely. It's just bollox for stock manipulation. I wondered how the muppets would spin it.
Straight from the news blurb line-up on Goog Finance:
US Stocks Decline as Apple's Outlook Trails Forecasts
BusinessWeek - 46 minutes ago
By Nikolaj Gammeltoft Oct. 19 (Bloomberg) -- US stocks fell from five-month highs after Apple Inc. forecast profit that missed analysts' estimates and China unexpectedly raised interest rates.
read:
We're giving you straight FUD rookies. Sell, sell, sell so that we can scoop up your shares at low low prices and make bundles of money!
I'm not sure what was more pathetic, the article or the comments.
The ignorance and arrogance seen in both are almost bizarre.
I read the same article last night. Simply mind blowing. Completely negative wihtout a single positive comment. No mention of the 70% increase in sales. As for the comments, well, they are irrelevant. These are people who's entire self-worth is invested in waiting for Apple to fail. The fact that they've kept waiting for the last decade without results is pathetic to say the least. This article drew them in like moths around a candle, much like the trolls here.
back up to 312 now. I wonder how many of these writers bought apple stock this morning.
That raft of negative stories designed to drive the stock into the ground borders on either collusion or straight-out stock manipulation. Are these analysts and reporters meeting with Goldman Sachs to trip up AAPL and get the jump on everyone? My 'spidey sense' is tingling...
Reiner noted that the iPad had a strong quarter, outselling the Mac. But that wasn't enough, as Wall Street analysts expected Apple to hit around 4.8 million sales for the three-month span.
Dang it. You FanBoys aren't pulling your weight. Get out there and buy more iPads! Heaven forbid they don't sell as many as expected.
That raft of negative stories designed to drive the stock into the ground borders on either collusion or straight-out stock manipulation. Are these analysts and reporters meeting with Goldman Sachs to trip up AAPL and get the jump on everyone? My 'spidey sense' is tingling...
Once again we learn that it's all a conspiracy. All I can suggest is, get a grip. If you can't get a grip, please try harder.
Why are these idiots even given a public platform to make their ridiculous statements from? They have no clue about anything, merely respond to actual figures after the event and make wild predictions based on vested interest and a complete lack of technical understanding.
Did ANY of their predictions for the last year come to fruition?
Once again we learn that it's all a conspiracy. All I can suggest is, get a grip. If you can't get a grip, please try harder.
Just because you're paranoid doesn't mean they aren't after you
Just because you're paranoid doesn't mean they aren't after you
It also doesn't mean that they are. Paranoia seems to be its own reward.
Once again we learn that it's all a conspiracy. All I can suggest is, get a grip. If you can't get a grip, please try harder.
Yeah... don't you guys know by now that everyone on Wall Street are a bunch of straight shooters.