“On October 15, 2013 Apple, Inc. (AAPL) sent out press invitations for an October 22 event to be held in San Francisco under the heading: ‘We still have a lot to cover,'” Bachar Samawi reports for Seeking Alpha. “For the event held on September 10, 2013 for the launch of the iPhone 5c, iPhone 5s and iOS7, Apple shares increased by 3.6% from one week prior to the sending of the invitations (whereby the invitations were sent out on September 3, 2013) to September 9, 2013, the day prior to the event. Yet, Apple shares reversed course and dropped by 11.1% in the week following the event, from $506.17 on September 9, 2013 to $450.12 on September 16, 2013. Will Apple shares reverse course again and drop following the October 22 event?”
“During the past 5 years there have been about 16 official Apple events, 6 of which included iPhone launches while 4 of which included iPad launches,” Samawi reports. “We examined Apple stock price movement surrounding the above events, from one week prior to the invitation date to one week following the actual event, as well as 90 days following the event.”
Samawi reports, “When we isolate iPhone events, Apple stock appreciated in 4 out 6 events in the week leading to the event (averaging -0.26% for all), 5 out of 6 occasions for the week following the event (averaging +0.6% for all), and 4 out of 5 occasions for the 90 days following the event (averaging +10.04%). When we isolate iPad event, Apple stock appreciated in 1 out 4 events in the week leading to the event (averaging -0.55% for all), 2 out of 4 occasions for the week following the event (averaging -2.24% for all), and 2 out of 4 occasions for the 90 days following the event (averaging +0.25%). Although past performance is no indication for future performance, it does seem that Apple stock performs well around iPhone events, with the exception of last year, while there is nothing conclusive for iPad events.”
Much more in the full article here.