“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.
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