Apple shares pop more than 9-percent as market realizes error of its ways

“Shares of Apple Computer Inc. rose more than 9% Thursday as investors shook off what some analysts called irrational selling of the stock and flocked back to the company, following the release of its new iPod video player,” Rex Crum reports for MarketWatch. “Apple climbed $4.49 to end the day at $53.74 on volume of more than 66 million shares exchanged, closing higher than where the stock was prior to Apple’s fourth-quarter report, released after the market closed Tuesday.”

“Investors trimmed Apple’s sales on Wednesday in reaction to the company reporting revenue of $3.68 billion, which fell shy of analysts’ consensus forecasts of $3.74 billion. The company also sold 6.45 million iPods in the quarter, while many analysts expected the company to sell as many as 8.5 million of the devices,” Crum reports. “Still, Apple earned $430 million, or 50 a share before one-time items, and recorded the highest quarterly profits and revenue in its history. Romeo Dator, manager of U.S. Global Investors All-American Equity Fund, said the marketplace fell victim to its own unrealistic expectations. ‘The market really misunderstood Apple’s report,’ added Dator. ‘Wall Street had been ratcheting up its estimates without any new guidance from the company.'”

Full article here.

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We hope everybody made a lot of money on the latest AAPL overreaction! Look up “knee jerk reaction” in the dictionary and you’ll see AAPL’s stock chart October 11-13, 2005.

Related articles:
Actual headline: ‘Stocks Set to Open Down on Apple Shortfall’ – October 12, 2005
Apple misses top line estimates, shares drop like a rock in after-hours trading – October 11, 2005
Apple shares plummet in after-hours trading – October 11, 2005
Apple Q4 05 earnings report: best quarter & best year in company history – October 11, 2005


  1. Think longterm. AAPL stands a good chance of growing well into the future. The Intel shift is following ever-growing iPod demand. Apple is poised to continue its upward trend.

    Apple is continuing to get stronger, especially compared to other companies’ stocks. Investors will seek AAPL out as a safer investment both because it is, and also because other stocks are not. My two cents.

  2. Bought another 110 shares at $45.77 in after-hours the day earnings came out to add to my collection. Just wish I bought double that amount.

    This is really sweet, though. Can’t complain to much about a 20% ROI in less than 2 days.

  3. That panic was just the big boys shaking out the amateurs and raking in an easy 10% gain on all the “cheap” shares they bought as the “sky is falling chickens” ran for cover. Total head fake by institutions; “traders” should be lashed for the crap they pull on small “investors”. Buy what you know, and believe in what you buy, or be prepared to make trading your daily business.

  4. Yup the brokers do that a lot with Apple. I’m pretty sure there’s a cartel going on.

    If you time it right, you can make a lot of money buying in and out of Aapl. Unfortnately most of the time I mess up and guess the wrong way!

    MW “lay” as in lay that damn golden egg you dumb goose!

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