Your prediction about Apple running into earnings being overbought is a bad thing turned out to be right! Today AAPL's move kind of mirrors NFLX after earnings. Many technical indicators turned negative today. MACD had a bearish crossover. Price fell back into the Keltner channel and looks to be approaching the lower boarder, which is around 510. Do you think 510 would be a buy again? I somehow feels the consolidation should be steeper, given how much it ran up recently and how heavy today's sell volume was. Do you think its uptrend is still intact? I took my positions off the table yesterday. But this morning I bought back too early seeing multiple upgrades. I had a big loss today, and exited my trade. I'm looking for a safer time to get back in. Please share your thoughts. Thanks.
Stockgirl, what's your take on AAPL's movement today? I think it'll go higher. I dumped my calls today but keep shares. I hope it will open low tomorrow so I can buy back my calls.
You're too pessimistic. Today's AH last trade was higher than today's intraday low. Numbers aren't bad. Selling will be minimum. I'd like it to go lower, because I want to add positions. But I think there's a good chance it'll open in the green.
Tomorrow morning, there should be a couple upgrades. I see no reason for AAPL to get downgrades on the numbers they reported. I think today's move is overreaction and profit taking.
Stock was overbought going into earnings. And 70% of Apple's income comes from iPhone and iPad which face increasing competition. Apple does have a systematic risk. Until they can use growth to justify the risk, it somewhat deserves a low valuation.
relax man. This is not unusual after Apple reports earnings. Over 60% of the time, AAPL drops after earnings. The numbers are solid, and the guidance almost smashed the consensus. Today's sell-off is partially profit taking, partially sell-the-news, and partially manufactured to kill option premiums. The stock went up 50 bucks in 14 trading days. It needs consolidation before going higher.
No growth or slow growth = no or low capital appreciation.
WS is obsessed with revenue growth. They believe as long as you can show revenue growth, you're demonstrating you'll have a tighter grip on a market or market segment, you become a monopoly and irreplaceable, and whenever you want to stop expanding and focus on bottom line growth, you'll have the ability to do so.
Overall, numbers look pretty solid. But there is one major issue I see in the financial statements: share count didn't reduce last quarter. They didn't buy back shares last quarter in spite of the low share prices at the end of the beginning. They still had 44 billion authorized for buyback in early July. Why didn't they buy? Did the company think AAPL was priced about right so they didn't want to waste money? That's a blow to investor confidence.
535 calls will still be worth something, but value will go down to maybe 9 or 10 bucks. The wild card here is upgrades. You can't say those numbers are bad. And there's always upgrades or downgrades following earnings. An upgrade tomorrow morning can make a small cap up and lead the stock higher.
And I feel sorry for those who listened to those pumpers to buy near term calls.
I said extra caution is needed when making money seems too easy.
LOL, just because last time it pulled off a huge rally doesn't mean it'll jump up again. Call prices are so inflated. Close to 7% of the share price for at money options. If you bought November calls, expect to lose money even if it goes higher after earnings, because it may not go up as high.