Best Quarter in History and the stock gets killed...
it's truly unbelievable. This is the absolute proof that big banks look at margin use/options interest to set the price movement. How else do you explain companies that make no money soaring to all time highs while apple gets killed on the most earnings ever by a non oil company? Yes guidance for Q2 was flat YOY, but the EPS will be 10% higher due to share retirement and improved margins. who cares though, I'll get a margin call tomorrow so the big banks claim another victim who was foolish enough to invest in the most profitable company in the world's history. But I knew the risks when I took them. Just didn't think they could do it on this particular earnings release.... Never underestimate the power of the big banks.
The numbers defied the experts and slapped them in the face. EVERY expert said that Apple's earnings rely on one thing--the iPhone. Well, today, you have iPhone sales miss by about 7 MILLION, and the stock still *beat* their eps estimates. Apple flexed some muscle as an overall, cash-rich, money-printing machine. So the price went down, big deal. Apple will simply buy more shares back, and the price will eventually catch up to reflect the incredible company that Apple is. China was up 30%, they sold the most phones ever there, and they've only now added China Mobile. Good times are ahead.
The china deal came too late. China is slowing down and the competition has as good phones for less. Supply issues should not be an issue at a high tech company. Bad timing, wrong direction and bad execution.