Why the AAPL sell off? Good news not good enough says Wall Street

Apple Online Store“Why the [AAPL] sell-off? This might be one of those classic examples of expectations exceeding reality, and therefore we have a sell-on-the-news scenario just a day ahead of Apple’s earnings release,” Jim Goldman reports for CNBC.

“NPD reported that Mac sales went from a year-over-year increase in February of 43 percent to a year-over-year increase of only 7 percent in March,” Goldman reports. “And while Piper Jaffray’s Gene Munster still believes Apple can hit his unit expectations of 2.8 million to 2.9 million Macs sold during the quarter, he had anticipated growth around 20 percent in March, which would have translated into a Mac sales number of over 3 million units.”

“In other words, even before Apple reports its earnings, NPD says the company will likely miss the rather optimistic whisper numbers floating around the Street. Apple shares are getting hit hard because of this. Munster says desktop sales dropped 5 percent year-over-year in March while laptops increased 14 percent,” Goldman reports.

Goldman reports, “NPD says overall, Mac sales increased 25 percent year-over-year for Apple’s March quarter. Consensus was up about 22 percent. But weakness in the month of March is likely what’s causing today’s sell-off. It’s a clear case of good news simply not being good enough.”

Full article here.

MacDailyNews Take: What, you want Wall Street to react logically to third-party estimates about one-month of Mac sales? Don’t be silly. That said, being off 0.65%, as AAPL is right now, is not much of a sell-off, now is it? Perhaps logic actually has somehow prevailed on Wall Street today.

Another potential (and more sensible) reason for the “sell-off” might be Gizmodo’s “4G iPhone” and its potential to freeze the iPhone market until June.

31 Comments

  1. Always love to hear how these “market analysts” try to deflect attention from the stock price manipulation tactics of the big institutional traders with their inane causal speculation. It’s time to “just say no” to CNBC, Fox Business News, Bloomberg TV, etc. when they waste so much air time on this blather.

  2. AAPL is overpriced. That’s why. Their iPod line is aging, their computers never saw the growth that was promised (over the past decade they’ve grown like 2% in the US? Basically 0% worldwide?), and their iPhone line is hitting some stiff competition from Google and their partners.

    Apple is a great company, and enormously popular, but you shouldn’t expect their stock to climb 5000% this decade like it did last decade.

    Here is a list of tech companies still more profitable than Apple:
    MS, IBM, ATT, HP, Google.

    http://money.cnn.com/magazines/fortune/fortune500/2010/performers/companies/profits/

  3. Agree, its idiot or criminal groups that just do not understand.

    But thats better for us. It gives us buying options. For people to sell now, it is just money for those pushing the stock around.

    Hey, Apple is up 50….. Microsoft is up …….1.

    Just a thought,
    en

  4. “It’s a clear case of good news simply not being good enough.”

    Yeah right. AAPL was off 33¢ from Friday’s close. Looks like when AAPL got cheap enough (down $5.63) those with cash didn’t believe the reports. I wonder who that might have been?

  5. More stock price manipulation, so the big money can get in before what they actually expect will be the quarterly report’s better than “good enough” news. They could NOT drive it down too far or for too long, because it closed back over $247, just one tenth of one percent below the previous close. I hope they got back in at $242; NOT – I hope they missed it and smaller investors took advantage of the dip to get in with more shares.

    It’s clear Apple has good earnings news. They delayed iPad’s launch by a few days from “late March” to “early April,” so that the revenue from the initial weekend iPad sales (including the shipped pre-orders), would count for the June quarter, not the one that ends March. Therefore, revenue and profit were already beating expectations for the March quarter without adding in the initial iPad surge, which they wanted to apply to the June quarter. That’s what I think; in this case, these “analysts” are being wrong intentionally.

  6. Apple is under priced, not over price. Google is over priced. Apple has had record earnings since before the recession. And is still getting stronger. As others have said, the blind leading the ignorant!

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