Tech stocks turn down; Netflix, Apple in the red

“Tech stocks turned from early gains Tuesday to dip into the red by late Tuesday morning, with Netflix and Apple both leading the reversal and helped by a drop at EMC Corp.,” Benjamin Pimentel and Dan Gallagher report for MarketWatch.

“The Nasdaq Composite Index was nearly flat at last check at 3,922, while the Morgan Stanley High-Tech Index was down 0.2%,” Pimentel and Gallagher report. “The Philadelphia Semiconductor Index was down by 0.4%.”

Pimentel and Gallagher report, “Apple slipped by 0.5% to $518.76 ahead of an event in San Francisco, where the company is expected to unveil its latest iPads. The stock was up nearly 1% earlier.”

Read more in the full article here.

22 Comments

  1. … above where it was early yesterday.
    Speaking of yesterday, I mentioned AAPL as being “similar” to MSFT, Yahoo and Google. Someone wanted to know what I was smoking. My point was, still is, they are all “Tech Stocks”. An identified class within the whole. Check “Investing 101”.

  2. SNAFU!

    As usual, which means today will be an amazing day for AAPL and for consumers.

    Price breaks for earlier models is always welcome. Future tech finding its way into newer models is even better; A7, Touch ID, Motion, Retina, coming to iPad Mini is what we want.

    Yesterday Netflix surged on findings its membership is now bigger than HBO’s and that speaks volumes.

    Why is HBO struggling to push its brand out there?

      1. I disagree, HBO is struggling with its brand and it shows in the mobile market; they’re leaving money on the table!

        HBO Go should be sold direct to consumers and not come bundled with expensive cable packages.

        Subscribers aren’t a problem; they make bank, no one is arguing that but Time Warner is skating to the puck; producing in-house commercial-free television programming using subsidies and subscription services is not sustainable.

        Time Warner could break the logjam of tiered cable services by selling HBO direct to consumers using their own application.

  3. Blah, blah, blah…buy on the rumors, sell on the news….blah, blah, blah…

    Ignore Wall Street today. Please. This always happens on an Apple announcement day. It’s the typical Wall Street BS. Apple might drop over the next few days as the pundits whine as always that they didn’t get everything for which thy fantasized, and then Business Insider will use that as fuel to poke a stick in Apple’s eye, all in the name of click-whoring.

    Big deal. Wait a few weeks as the rush of pundit and analyst disappointment becomes replaced with cold, hard facts: growing sales and an embrace by consumers. If you look at the stock chart of any good company not on a day-to-day basis, but from a 2-5 year perspective, the ripples smooth out and you see the true trajectory of the company’s growth an earnings reflected in the stock price. That’s why one day does not matter.

    As for me, I’m keeping an eye peeled not on the hardware and OS announcements, which have pretty much been telegraphed, but hopefully, we will see progress in content deals signed for the Apple TV ecosystem, a deal with China Mobile and the appearance of Angela Ahrendts on stage with Tim Cook. That might not sound as sexy as new hardware, but in the long run, these might be the announcements that have greater importance, and may impress Wall Street much more.

    So sit back and enjoy the fun. Ignore the rancor of Henry Blodgett’s latest anti-Apple screeds, the punditoctracy of Gizmodo and The Verge, the bloggers, self-important analysts and other sources of useless garbage. In the long run, they won’t matter. The news and facts will.

      1. Aw shucks, garsh, golly gee whiz, sir. I hardly deserve such praise. I’m here to keep people calm and keep things in perspective. So many websites (sometimes this one included) and TV channels (cough, cough, CNBC, cough, Fox, cough, CNN, cough, ahem, MSNBC, cough, cough) resort to click-whoring to get eyeballs and advertising credits, with inflammatory headlines, links and statements. The intent is to raise our blood pressure with outright lies (cough, cough, Business Insider, cough, cough CNET) to get us to click.

        My advice: please don’t feed the trolls. Ignore them.

        When you look at a stock chart from a distance of five to ten years, the ups and downs of a day, a week, a month, a quarter start to smooth out. If you believe in a good company as an investment, let to grow. Don’t lose your mind because of the illogic of one day of Wall Street hysteria. If you think that way, and go outside more, your life will be better. Fast forward 10-20 years from now, and as long as you reinvest your dividends in a stock like Apple, you will wake up one day, and realize that just reinvesting dividends will at least double your returns, all for doing nothing more than clicking a box when you bought the stock.

        Gotta love the magic of compounding X time.

        All in all, it was a pretty good day. The pundits just don’t realize that yet. But you do.

        Thanks again.

      2. Brian used 280 words to say what you said in 48.

        He used 240 to thank you for what he perceived as praise!

        “Gotta love the magic of compounding X time.”

        Translation: Now I’m just making shit up and no one seems to notice.

  4. It’s only a matter of time before Scott Forstall surfaces to compete with Apple, if Apple doesn’t offer him sub-contractor’s status to provide features & services.

    You can hang the Maps debacle on Scott, but it didn’t really hurt Apple, not in the long run because Apple Maps will only get better and within a few years, it will be a premium 3D (x-y-z) service that offers not only Street View, but Shopping Venues as well.

    The future of the Shopping Mall is in 3D technology, providing consumers myriad ways to spend their money.

    1. I’m sure you’re right. And it’s too bad they had to let go a genius like Scott, but it is my understanding that teamwork at Apple was badly damaged and Tim Cook did an intervention. Half a loaf is better than none

        1. Sometimes my messages fly off by themselves, unfinished. You may disregard the unexplained aphorism, as I’ve forgotten what I intended to say. “Oaf” is unexpectedly funny, though 🙂

  5. Buy the rumors, sell the news… same pattern as other Apple releases over the past several years. iPhone 5 release being the best-known example, but many other times over the past decade (when AAPL was a more niche investment.) More often than not the shares have slumped post-announcement.

  6. “In the red” generally refers to operating losses. On a given day the stock market may be up or down from some prior position, but that only reflects what the next buyer is willing to pay and what the current owner is willing to sell for, not much to do with operating margins. Their point is what? These guys need to go back to school.

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