When Apple (or any company for that matter) releases an earnings report, it included 2 items: Quarter results and guidance.....Nobody cares about the quarter results...they ONLY care about guidance.
Well the next quarter passes and guess what? The "guidance" that everybody was worried about before has been translated into the current quarterly results to which nobody cares about now because they are only concerned about the next quarters guidance. And the process repeats itself each and every quarter.
The end result is a complete obsession with "guidance" which eventually always turns into "results" to which nobody gives a shit about because they are concerned about the next round of "guidance".
"guidance" really doesn't mean shit, it's results that matter....but they are almost always ignored.
Good post. None of this makes much sense. That's why the investing/trading game is so interesting. What does make sense to me, though, is that Apple Computer is one of the most innovative and respected companies on the planet. It doesn't take much good news to push this stock much higher. And APPL seems to survive all the negative stuff quite well.
that's bc guidance about the next quarter will have an effect on the stock price today. Thus, when 3mths passes and everyone is getting ready for the new guidance to be issued, the old guidance issued in the prior 3mths has already had its effect on the stock price.
case in point: mid-Jan, Apple lowered guidance for March. What happened? stock went from $86 to $66 today.
That's why guidance matters bc it'll have an immediate effect on resetting expectations for the coming 3mths.