U.S. stock futures fall on Apple’s record results

“U.S. stock futures fell after Apple Inc. (AAPL), the world’s biggest company by market value, missed analysts’ profit estimates for the first time since at least 2004,” Nick Baker and Rita Nazareth report for Bloomberg.

“Apple sank 6.4 percent to $395.10. Futures on the Nasdaq-100 Index, which gets 15 percent of its value from Apple, fell 0.9 percent to 2,340,” Baker and Nazareth report. “Apple’s income trailed the average analyst forecast by 3.5 percent after customers delayed purchases before a new iPhone was released.”

MacDailyNews Note: After earlier posting record quarterly revenue of $28.27 billion and record quarterly net profit of $6.62 billion, or $7.05 per diluted share, Apple was down -$28.24, or -6.69%, to $394.00 at the end of after-hours trading.

Baker and Nazareth report, “‘There’s just no conviction that seems to survive,’ John Carey, a Boston-based money manager at Pioneer Investments, said in a telephone interview. The firm oversees about $250 billion. ‘Apple’s results have disappointed some people. People are wondering where the economy is going, what earnings will look like and whether Europe will work its way through this crisis.'”

Read more in the full article here.

MacDailyNews Take: Ah, the glorious charade! Don’t fight it, use it.

Related articles:
Wall Street logic: We were wrong on Apple yet again, let’s punish them! – October 18, 2011
Wall Street got ahead of itself on Apple; shares plummet in after-hours trading – October 18, 2011
Apple posts record revenue of $28.27 billion, misses Street expectations for first time since 2004 – October 18, 2011

30 Comments

  1. All previous quarters had a new iPhone released around June or July. This years quarter had no iPhone released and still almost made the quarterly results. This is why Wall Street should herd cattle. moooooooo

  2. For 7 years they under shottipple stock. So they finally decided to predict significantly higher. Oops, they got their prediction wrong again. Maybe they didn’t know the cycle of the iphone4 was delaying. Meaningless predictions to apple’s success. There are always scared day traders who trust these guys. Watch it rebound…

  3. And there you have it: RECORD QUARTER SALES, RECORD PROFITS, RECORD MARGINS, RECORD GUIDANCE NUMBERS FOR Q1/2012 . . . and the stock drops 7%.

    Truly, Wall Street at its best.

    1. The regular trading day today had a volume of 24 million shares traded; after hours a significant 7.3 million shares traded. 7.3 million trades is liquid enough of a size to indicate the initial sentiment and direction of the stock.

    1. At least in this instance, the EPS estimates by amateurs (bloggers) were far less accurate than those by professional analysts. I mean ANALysts.

      Check it out:

      http://tech.fortune.cnn.com/2011/10/11/wall-street-still-doesnt-understand-apple/

      A more accurate description of the problem is that for the second time in a month, Apple fans and investors (including myself) believed rumors that proved not to be accurate: The first time relating to Apple’s (non-)introduction of the iPhone 5, and the second time with respect to earnings for its fiscal 4th quarter.

    1. The British economist John Maynard Keynes once said: “The market can remain irrational for a lot longer than you can remain solvent.”

      But if you’re certain that you’re correct (about the system not lasting much longer), why don’t you short the stock of the New York Stock Exchange (the company that operates the exchange)? You could get rich … if you’re correct.

        1. Unfortunately Keynes is the poster boy for the idiotic economic philosophy that’s fueled much of the US government’s economic snafu. Quoting him on economics is like quoting Stalin on human rights, or Justin Bieber on puberty.

          You should read Friedman, and learn why after being a believer in the 30-40’s, he ditched Keynes and the lessons he learned.

      1. Greed is what makes the economy work. If nobody was greedy, nobody would want more, which would kill demand and create no new revenue. Sure Wall Street is silly and misguided, but then again, so are you two. If you don’t have any rich guys, the system is broken, and there’s no way you’ll ever have a chance of better earnings.

        Greed is good, corruption is bad, and the two are independent of each other.

        All of the economic problems in the US, are because of protectionist policies by the US government. Look at your last year’s tax filing (assuming any of you even have one), you should see a pretty straight forward breakdown of what happens to your earnings, I think you’ll see there’s no Wall St, but the government taking a huge chunk of your income (then you pay even more in consumption taxes spending what’s left). If this concept fails you, and you continue to blame third parties while failing to identify the entity who regularly robs you blind, then grab your coat and check out of all economic debate.

  4. I’m sorry but profit of any kind should be viewed as the baseline, if your profits go up that’s a success. The problem with our society is that it keeps resetting the baseline to the last level of success, so that even if a company matches those same previous levels of massive profits it’s then deemed a failure.

    Greed is the only word to describe it, Wall Street just wants more and more, and comes to rely on it, which is why things are so fucked.

    As a small business man, my first target is to break even, to pay my bills, anything more than that is a bonus.

    It’s a sad day when Apple of all companies are deemed to have disappointed with their figures.

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