“Kidding aside, and given how strong the most recent quarter’s numbers were, it’s fair to wonder why the stock is going down and not up,” Forrest writes. “First the stock drops from $644 all the way down to $555 the day of earnings, and then it climbs up to $618, and then it falls right back to Friday’s close of $565. None of it makes sense, right? The stock is so cheap, trading at just 11.5 times next year’s earnings, right?”
There are lots of short-term explanations for why Apple’s stock is going down:
• The broader market is falling.
• It broke its 50-day moving average.
• It had to fill the gap.
• It’s just profit-taking; people have made a ton of money.
• The jobs numbers were terrible, but not bad enough for QE3.
• The law of large numbers will kick in.
• The company provided a conservative outlook for the June quarter.
• Apple has some tough comparisons ahead.
• Sell in May and go away.
• Europe is in turmoil. Sarkozy lost and the pro-bailout Greeks got tossed.
Much more, and many more bullet points, in the full article here.
[Thanks to MacDailyNews Reader "Dan K." for the heads up.]