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Tuesday, October 11, 2005, 05:00 pm
Apple stock tanks over 11% in after-hours trading
Shares of Apple Computer plummeted nearly $6 in after hours trading on Tuesday, losing over 11% of their value despite the company reporting the best quarterly results in its history.For its fourth fiscal quarter of 2005, the Mac and iPod maker posted revenue of $3.68 billion and a net quarterly profit of $430 million, or $.50 per diluted share. These results compare to revenue of $2.35 billion and a net profit of $106 million, or $.13 per diluted share, in the year-ago quarter.
However, the results still fell short of the extremely high investor expectations that have been baked into the company's stock price, which has recently traded at all-time highs.
As of 5:00pm eastern time, Apple stock was trading at $45.85, down $5.74 or some 11.13%.
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Buy.
My thoughts exactly, they did beat expectations but just not enough. Just your typical overreaction from analysts. Tomorrows event should be big, which is why it's tomorrow and wasn't at Paris.
The earnings exceeded the expectaions, but the revenues were below what was expected.
My interpretation is that the profit was great, but that the volume of sales was less than anticipated.
ButwhatdoIknow
Shares of Apple Computer plummeted nearly $6 in after hours trading on Tuesday, losing over 11% of their value despite the company reporting the best quarterly results in its history.
For its forth fiscal quarter of 2005, the Mac and iPod maker posted revenue of $3.68 billion and a net quarterly profit of $430 million, or $.50 per diluted share. These results compare to revenue of $2.35 billion and a net profit of $106 million, or $.13 per diluted share, in the year-ago quarter.
However, the results still fell short of the extremely high investor expectations that have been baked into the company's stock price, which has recently traded at all-time highs.
As of 5:00pm eastern time, Apple stock was trading at $45.85, down $5.74 or some 11.13%.
[ View this article at AppleInsider.com ]
I've held Apple stock for just over eight years and this pattern is nothing new. You get a run up before the earnings announcement, Apple meets or beats the projections and the price plummets. Clearly, there are market manipulators that drive this behavior. These are not true Apple investors, these are just greedy bastards that care only about money and not how slimily they make it.
Anyone who has put their money into the stock of Apple Computer, Inc. because they think it is a good investment should be thrilled by the news. Apple is on the right track and our investments in the company continue to be wise.
The market is psycho.
No, the market has been critical of Apple for a long time (and rightfully so, I might add) for not lowering their margins and using some of those profits to drive revenues.
With $430M coming in for the quarter, to not be advertising the Mac line is troubling. The reason is that anyone who knows anything knows that there's no Mac advertising because Apple doesn't feel that the Mac is a marketable product - there's really nothing sufficiently good they can say about it to drive sales.
So, they sit on their thumbs until the Intel Macs come out when a better opportunity for marketing shows up and stash away the money as fast as they can. But the long-term health of the company ultimately comes down to using your profits for SOMETHING that will benefit the investor. That might be a dividend if you have no other idea what to spend the money on, or acquisitions to expand revenues or secure a market segment, or investing in new product development or just slashing margins to make your prices more appealing to consumers. But sitting on a huge pile of cash when you have no debt is a weak sign to investors.
[BSo, they sit on their thumbs until the Intel Macs come out when a better opportunity for marketing shows up and stash away the money as fast as they can. But the long-term health of the company ultimately comes down to using your profits for SOMETHING that will benefit the investor. That might be a dividend if you have no other idea what to spend the money on, or acquisitions to expand revenues or secure a market segment, or investing in new product development or just slashing margins to make your prices more appealing to consumers. But sitting on a huge pile of cash when you have no debt is a weak sign to investors. [/B]
I expect that we'll hear about a new Apple acquisition in the near future ... and ...
Buy.
This just pisses me off. I finally have some money to invest so I buy 136 shares
at 51.19. Then the announcement of Apple's best quarter ever which I think
is great news, & now I hear there was a friggin' 11% slide in after-hours
trading! Fate & timing keep screwing with me. When the iMac first came out I
wanted to buy but I was a broke college student. I was going to buy Apple
stock when it was at $14 but then my car up & dies on me. So instead of putting
ten grand in stock I put a downpayment on a car. That ten grand would
be worth something like $100,000+ today. To this day... I curse my old car for
falling apart.


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"One more thing?" Hmmm.. Looks like they timed this perfectly.