Apple stock claws back to very nearly where it was before the revenue revision
Apple shares closed at $157.76 on Friday, reclaiming nearly all of the valuation that the company lost following a bombshell guidance downgrade made on Jan. 2.
The stock closed at $157.92 that day, but Apple's after-hours announcement caused a massive selloff on Jan. 3, dragging shares down to $142.19. Although they bounced back to $148.26 on Jan. 4, they haven't been above $156.82 at close of market since.
The company revealed that instead of the $89 billion to $93 billion in revenue it had originally forecast for the December quarter, it was now expecting to report $84 billion -- at least $5 billion less. CEO Tim Cook placed most of the blame squarely on iPhone sales, saying it that it accounted for "all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline."
He specifically cited the Chinese iPhone market, but also factors like "foreign exchange headwinds," fewer carrier subsidies, and "economic weakness in some emerging markets."
Upsetting some people he pointed to people taking advantage of a temporary discount on battery upgrades, instituted to apologize for throttling iPhone performance without consent. The company reportedly saw at least 11 times more upgrades than it had planned for.
Apple's stock rebound comes just days before an official announcement of December-quarter results on Jan. 29. It's uncertain how investors will react -- at least one firm, Morgan Stanley, has urged investors to buy stock now on the argument that share prices are unlikely to go much lower.
The stock closed at $157.92 that day, but Apple's after-hours announcement caused a massive selloff on Jan. 3, dragging shares down to $142.19. Although they bounced back to $148.26 on Jan. 4, they haven't been above $156.82 at close of market since.
The company revealed that instead of the $89 billion to $93 billion in revenue it had originally forecast for the December quarter, it was now expecting to report $84 billion -- at least $5 billion less. CEO Tim Cook placed most of the blame squarely on iPhone sales, saying it that it accounted for "all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline."
He specifically cited the Chinese iPhone market, but also factors like "foreign exchange headwinds," fewer carrier subsidies, and "economic weakness in some emerging markets."
Upsetting some people he pointed to people taking advantage of a temporary discount on battery upgrades, instituted to apologize for throttling iPhone performance without consent. The company reportedly saw at least 11 times more upgrades than it had planned for.
Apple's stock rebound comes just days before an official announcement of December-quarter results on Jan. 29. It's uncertain how investors will react -- at least one firm, Morgan Stanley, has urged investors to buy stock now on the argument that share prices are unlikely to go much lower.
Comments
I’m happy to see the stock going up again, but it has a long way to go to get back to where it was just a few months ago.
At this point, I'm a bit unclear about the rules (or at least where the line is). Politics is part of life and numerous articles are quite political in nature, as are some of the comments.
I'm not sure I get what's wrong with that, as I'd think the point would be... that for some reason, some people can't seem to politely discuss politics or religion, but then why not police/ban the bad behavior, not eliminate those topics (which are, IMO, the most important of topics there are)?
I get that it's a tech forum, and not wanting to run too wildly off-topic, but if the article itself is related... then we just turn comments off or pretend it isn't political? And, it isn't like the bad-behavior of some is limited to political articles either.
I guess it's your forum, but it would be nice to know if there is some real line, or if is it like speeding tickets, where some small percentage get smacked down to keep us all on our toes?