Thursday Brings a Bloodbath for AAPL on Wall Street

[Michael Essany]

Legendary horror film director Wes Craven has made movies less gruesome than today's performance by AAPL on Wall Street.

One day removed from the company's holiday quarter earnings report, shares of the Mac maker have tanked by more than $50, trading perilously close to $450 - a devastating level given the stock's record-high price of $700 just three months ago.

On Wednesday, Apple revealed earnings of $13.1 billion on record sales of 47.8 million iPhones, 22.9 million iPads and 4.1 million Macs. Revenue also climbed 18% to $54.51 billion, although analysts had expected $54.73 billion.

"It's just not fair" how investors are treating Apple, CNBC's Jim Cramer said Thursday, a day after Apple reported earnings that beat Wall Street estimates but saw disappointing revenue numbers.

CNBC analyst Jim Cramer says the sustained sell-off isn't "fair" and doesn't make sense, although it's understandable given how "Apple feels like a pitiful, helpless giant" today.

Source: CNBC

[mustard05]

People like you prematurely hurt the stock. When bloggers write misleading stories, what do you expect the stock to do.

[dennder]

Company sells millions of devices, increasing revenue by 18% to 54.5 billion, people, __ 54.5 BILLION __ dollars of REVENUE, and it's stock falls
Apple or no Apple, this is just wrong.

This only shows how wrong and broken todays stock market is, and, in fact, means absolutely nothing, except for those who earn money on speculations (buy/sell/buy/sell stocks).

[Carvensno]

Because everyone today is doing short trading. No one is in it for the long haul and buying and holding for retirement. That's the problem with people and company now a days. Everyone wants there money now!!! And companies want to know what there bottom line/profit is right now or for today!!! It's really sad and that's why our market is so screwed up. Plus the market value is still not a true value. Some financialists are predicting another 2008 this year. See what happens! Lol

[Alluziion]

People like you prematurely hurt the stock. When bloggers write misleading stories, what do you expect the stock to do.

I fail to see how this article is misleading? It's very much the truth.

The problem lies with analysts predicting ridiculously high targets for a company that is just a company. People seem to think that the employees have miracle-making super-powers and expect far too much from them; it is these high expectations that make it difficult for Apple to please the greedy traders. But nevertheless, this is Apple and I'm sure that they'll bounce back but I doubt that they'll reach the $1,000+ targets without innovating; I remained positive after the death of Steve Jobs but all I see now are failings, a once revolutionary company that's moved away from what they do best and becoming just another exploited gold mine which will at some point become depleted unless they search for new discoveries.

[Anndy]

There is obviously a general problem in the markets behaviour nowdays. Capital fluctuations in the stock market are not explainable and people keep loosing a lot of money.

I am happy not to have any AAPL shares, because, obviously, after yesterday's results, I would have never sold them.

I am really curious to have a specialist's explanation on this.

[GrumpySod]

Simple rule! What goes up must come down!! And sadly it happens to shares too! Although I don't apple shares I have had shares that have gone down when good news comes!

[RokeSmoreMeefer]

People like you prematurely hurt the stock. When bloggers write misleading stories, what do you expect the stock to do.

Overvaluation hurts stocks. It's just finally settling back down to what it's really worth.

[clive.weller]

Slowly, slowly the Apple will be eaten away and all they will have left is a core and a few pips and at the end of the day it will be their own fault!

[mustard05]

Overvaluation hurts stocks. It's just finally settling back down to what it's really worth.

Correct, an overvalued stock will always correct itself eventually. However, in the case of Apple stock, it was prematurely brought down last week by frivolous rumors based of off ordering patterns between Apple and Apple's supply chain. Those rumors brought Apples stock down without merit. ALL STOCK PRICES REFLECT CURRENT AND UP TO DATE INFORMATION. Stocks DO NOT reflect all current and up to date information, plus the rumor mill.

Using random numbers..........
Stock A
Price 550........................The 550 represents CURRENT AND UP TO DATE INFORMATION.
after earnings call 500......The 500 represents CURRENT AND UP TO DATE INFORMATION.


Stock B
Price 550
Price after rumors 525
Price after earnings call 475..... The 475 represents (CURRENT AND UP TO DATE INFORMATION)+ (rumor mill)

Stock B is lower than it should be because of unconfirmed and collaborated rumors. This should not happen.

Company sells millions of devices, increasing revenue by 18% to 54.5 billion, people, __ 54.5 BILLION __ dollars of REVENUE, and it's stock falls
Apple or no Apple, this is just wrong.

This only shows how wrong and broken todays stock market is, and, in fact, means absolutely nothing, except for those who earn money on speculations (buy/sell/buy/sell stocks).

I agree.

Because everyone today is doing short trading. No one is in it for the long haul and buying and holding for retirement. That's the problem with people and company now a days. Everyone wants there money now!!! And companies want to know what there bottom line/profit is right now or for today!!! It's really sad and that's why our market is so screwed up. Plus the market value is still not a true value. Some financialists are predicting another 2008 this year. See what happens! Lol

I dont foresee are market dropping this year, but you never know.

As for individuals who are betting short on Apple, they made some money for sure the last couple of weeks. This is where the rumor mill can make unethical individuals money fast.

[sziklassy]

People like you prematurely hurt the stock. When bloggers write misleading stories, what do you expect the stock to do.

If a simple blog post is good enough to foil the stock market, then there are problems. If people are stupid enough to base their stock trading on a blog, well, you see where I am going I think.

By the way, can you point to where the misinformation is here? I don't see it personally, but I have been wrong before.

Company sells millions of devices, increasing revenue by 18% to 54.5 billion, people, __ 54.5 BILLION __ dollars of REVENUE, and it's stock falls
Apple or no Apple, this is just wrong.

This only shows how wrong and broken todays stock market is, and, in fact, means absolutely nothing, except for those who earn money on speculations (buy/sell/buy/sell stocks).

I think it is you who doesn't see how stocks work. Increasing revenue isn't enough. Percentages are what matters. Apple grew less this quarter than in any other quarter preceding for years. If I can sell my Apple stock and buy into another company with larger growth, I am going to do that, because I can make more money elsewhere. THAT is what trading stocks is all about. Its never being complacent.

[jOnGarrett]

Company sells millions of devices, increasing revenue by 18% to 54.5 billion, people, __ 54.5 BILLION __ dollars of REVENUE, and it's stock falls
Apple or no Apple, this is just wrong.

This only shows how wrong and broken todays stock market is, and, in fact, means absolutely nothing, except for those who earn money on speculations (buy/sell/buy/sell stocks).

good thing we have an anonymous "blogger" instead of those pesky Ivy League educated Financial experts annoying us with all their Facts, research and years of experience. They're probably all Galaxy S3 users anyway.

[feidhlim1986]

Apple Fansites, like MMi, going bat shít crazy of rumours over and over again is what has over inflated Apple's stock price in recent years. This rumour mongering has spread to mainstream media and analysts are even believing that nonsense.

[dennder]

I think it is you who doesn't see how stocks work. Increasing revenue isn't enough. Percentages are what matters. Apple grew less this quarter than in any other quarter preceding for years. If I can sell my Apple stock and buy into another company with larger growth, I am going to do that, because I can make more money elsewhere. THAT is what trading stocks is all about. Its never being complacent.

Actually, sziklassy, you have just "expanded" the last part of last sentence of my post, nothing more. Re-read it please.
Thus and therefore, i suggest you do not tell people about "not understanding" something, prior to understanding what they meant.

[mustard05]

Apple Fansites, like MMi, going bat shít crazy of rumours over and over again is what has over inflated Apple's stock price in recent years. This rumour mongering has spread to mainstream media and analysts are even believing that nonsense.

I agree.

[cwglideman]

My advise to anyone with disposable income right now is to buy, buy, buy AAPL....you know the stock is going to climb again once the latest and greatest IDevice is on the horizon.

[NSXrebel]

Typical MESSany story.

[sknet]

will it ever reach 700$ again?