Matt, i think the margin line was a tell and troubling. Talk has been that their margins were getting squeezed and now we're seeing it. 2 reports back it was in the 44's, then the 40's, now 38.7. 6 margin pts is a lot of dough. Lower margins = lower net profits = lower eps. When Apple could do no wrong and slaughtered every earnings forecast, you paid a premium for the shares..
That now has changed, and what helped drive their price to 700 was being a hedge fund darling. If you look at a 6 month chart into that 703 high, you could see it was unsustainable. WS rode it for all they could, pumped it hard, then dumpoed it hard. It's what WS does. There's a lot of money to be made in P&D's..
I just don't know how you get back in here with hopes of a big upside until we see another ER to determine if this was an aberration OR the new Apple..
Agreed. Margins has no where to go but down....the sooner apple swallows that reality that they have to come out with cheaper phones with lower margins to gain acceptance in EM, the better it is for the stock. Cook talks about China being its biggest market, but the chinese are notorious for protecting their own turf, there is no way apple goes in and an expect to extract so much profit out of China - they are going to nickle and dime apple on negotiations - and apple has to crack. And Apple foray into TV would be their biggest mistake yet. Apple has one catalyst for near term and that is to use their cash for share buyback.. That is the only catalyst I can see to move this stock much higher near term. Otherwise this will settle around $400 to $430 over next few months.
No rebound until AAPL posts a stunning result next quarter. For next three months, it is going to get uglier for AAPL. AAPL hasn't done anything last three quarters except for resizing its iPad and stretching is iPhone. That is about it. No innovation was to be found.
Open at 475 is my guess. ER was good. I think high frequency trading started a snowball AH today. CC was bullish for demand and product cycle for anyone who listened. Basically apple grew revenue at 30% year over year last Q and they had a supply not demand constraint.
I also expect 40B additional buy back to be announced. Well not really.
Nightmare for longs tonight, beat eps expectations and did 99.8 rev expectations, but b/c guidance sandbagged the stock fold off. Failure of CFO to not play Wall Street game. Going 25B buy act prior to this earnings gets solid eps beat and corrects stock and brand sentiment which are now intertwined and both devastated.
Spend almost half of their cash on BB then pay another 15B on dividends? You must be mad to think a company will do such a thing, they'll get smashed. The only thing that can make the stock go up, and I don't mean save apple which is not the issue obviously if for them to come up with a NEXT GREAT THING. But I think TC is not the guy to do it, besides the risks are enormous. If you come out with a product which is a flop (how thinner can you make tv's?) the repercussions of such a failure will be devastating. It will say Apple lost its vision we're lost.
AAPL will be back up to 500 + soon. If not his week, next week. Hypothesizing, pps to 400 from 514 is absurd. over 100 dollar drop-no way! Eveyone thinking-believing it will continue to free fall. Guess what? They turn it on you. Psychology of this game gets you, not the fundamentals
Imagine watching the iWatch commercial for the first time.......With so many new products coming to market and the cash hord apple has its tuff to dissmiss them. I long and will look at attractive buying points in the morning. And I know there is an audience of people willing to get an iWatch
Im becoming a discouraged long, but i believe this selloff was SO OVERDONE! Profits in the BILLIONS, not losses! Some companies report losses and dont take 1/3 the beating Apple took! I wouldnt be surprised to see a $490 close. Volume after hours was weak also, which puts that in perspective...I hope Im right!
Sentiment: Strong Buy