Apple’s earnings miss could take down the stock market

“Of all the earnings reports released this season, who’d have ever thought it would be Apple that could take down the stock market,” Lee Brodie reports for CNBC. “But after the bell, Apple released quarterly results that left pros with their jaws agape. ‘This is a real negative. The Street is shocked by this,’ said trader Tim Seymour, founder of EmergingMoney.com, on CNBC’s Fast Money. Apple missed earnings estimates, revenue estimates and iPhone sales estimates.”

Brodie reports, “For the quarter ended June 30, Apple reported a profit of $8.82 billion, or $9.32 a share. After revisions lower, analysts had most recently predicted a per-share profit of $10.37 a share. Also, Apple sold 26 million iPhone units — the Street was looking for 29 million. This makes problems for the stock market bulls,’ said Dennis Gartman, author of The Gartman Letter. ‘It makes problems for anyone that’s long.’ In part that’s because Apple is the largest company by market cap. And any decline in Apple stock tends to be amplified. But more important, results will also kill sentiment.”

“Apple’s results suggest that recent economic data is not to be ignored; that the global economy is getting a lot worse,” Brodie reports. “Money managers will say, ‘If Apple is not immune (to the malaise) then I’m out of the market. I don’t need to buy anything,’ added trader Tim Seymour.”

Read more in the full article here.

MacDailyNews Take: We follow Apple very closely and we are unmoved by Apple’s Q312 results. Mac units are +2% YOY, iPhone units are +28% YOY, and iPad units are +84% YOY. Apple, at least, and especially in this economy, is doing just fine.

This too shall pass.

Related article:
Apple misses estimates with $9.32 EPS on $35.0 billion revenue – July 24, 2012

63 Comments

  1. Easy now… Apple is not immune to being held to a high standard of performance. Revisionary history tells a tale of many blue chip companies losing their foothold due to what investors expect versus what they get. As for taking a company this size private goes…. Well I will defer in commenting… Are you kidding me!!!

  2. I get so tired of this horseshit. It seems this represents so much of what is wrong in the world today.

    In a depressed economy, we have a company that is increasing its sales in practically everything they produce YOY, not to mention that last year was a depressed year as well. The same company publicly predicts it positive sales and meets them in this turbulent time. Net result? Some flunky says, like an overbearing parent that reads an A students report card, yes but you could have done a little better and BOOM, the world falls apart.

    Greed and market manipulation behind a false mask of …GASP…SHOCK…OMG!!! Mark my words, everyone and his dog will be buying over the next dew days and this will all be a stupid reminder of how the wold has gotten into the economic funk in which it now finds itself.

  3. If Apple had introduced a new iMac at WWDC, they would have one more sale. Sure one could get the current iMac, but after 400+ days, I’ll wait. I never had an iPhone. Basically, I didn’t want to double my monthly cell phone bill. With Apple paying out a dividend, and a new iPhone to hit the market shortly, I may just bite the bullet when I get my first dividend check. Then 2013, PowerMac updates for those who have been patiently waiting. I wonder how many others are feeling the same? Pent up demand anyone? If Apple missed the mark this quarter, I wonder if the next quarter will be a blow out?!

  4. The stock market is a gigantic scam.

    Read ‘The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It.’

    Nerds with computers making millions at the click of a mouse.

    1. This is how the scam works:

      FUD! spew the wolves.
      Bah! bleat the sheeple art they are herded into the shoot that leads to the rotating knives.
      Lamb chops for dinner! chortle the wolves.

      Watch this happen tomorrow (2012-07-25).

      ‘Sell sell sell’ bleat the sheeple. The wolves sit back and laugh. The sheeple effect reaches completion.

      ‘Buy buy buy’ bark the wolves. They pick up some cheap Apple stock, which then of course bounces back to something approaching a sane value.

      The sheeple are shorn.
      The wolves get fatter.

      If only it weren’t so easy.

      “There’s a sucker born every minute” – Attributed to P.T. Barnum, actually stated by David Hannum, banker, 1869.

      “If we should ever separate, my little plum, I want to give you just one bit of fatherly advice: Never give a sucker an even break! – W.C. Fields in the film ‘Poppy’, 1936.

      If this doesn’t remind you of political propaganda… 😯

  5. So let me get this straight:

    Apple exceeded guidance, YOY comparisons are highly favorable. All that and Apple is sitting on $100 billion in cash, has zero debt, will soon face the “back to school” market with new products in Q3 and has a highly anticipated iPhone release that may come about in Q4.

    Global markets are slowing and that’s a simple fact. My take is that competitors trying to launch new product into this environment will have a tough time.

    Steve Jobs left Apple with an enormous cash buffer, a solid management team and a product pipeline that will continue to be the envy of the industry. What a great legacy.

  6. Regarding AAPL, I’m all in since 2000, and will continue to be for the foreseeable future; that is to say, years.

    I believe the whole is greater than the sum of its parts, the ecosystem is greater than just devices.

    Apple is building a truly new global brand/model, and thus, room to grow. Stay long AAPL!

  7. ‘This is a real negative. The Street is shocked by this,’ – Tim Seymour, founder of EmergingMoney.com, on CNBC’s Fast Money.

    BWAHAHAHAHA! Goes to show you the lunacy of the stock market amidst our ongoing worldwide economic depression.

    OH NO! APPLE BEAT IT’S OWN EARNINGS ESTIMATE! BUT NOT THE STREET’S! LET’S JUMP OUT WINDOWS AND DIE!

    It’s like little children attempting to run the world and FAILing miserably:

    Boohoo little babies. Don’t cry. You need your diapers changed. There. Now you feel better! Baby want a bottle?

    These people are called ‘professionals’. 😆

    1. @ Derek: It’s close to midnight where I am and I’m having a hard time getting ready to turn in due to your fantastically hilarious and incisive comments hereabouts! Don’t ever stop.

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