Following record earnings, Apple’s stock hits longest losing streak in 3 1/2 months

“Apple Inc.’s stock slumped 1.8% in morning trade Thursday to set the stage for a third straight loss, the longest such stretch since a three-day losing streak ending Jan. 16,” Tomi Kilgore reports for MarketWatch.

“The technology giant’s stock has lost 4.8% during the current streak, which began after first-quarter results were announced late Monday,” Kilgore reports. “The last time Apple suffered three straight post-results losses was in the wake of fourth-quarter 2013 results, reported after the Jan. 27, 2014, close.”

Read more in the full article here.

MacDailyNews Take: Apple today closed down $3.49 (-2.71%) at $125.15.

39 Comments

    1. Actually, there are at least four “downers” at work here in the past three days:

      1. The somewhat alarming “Irish Tax Issue” that could result in a 2.7 billion dollar repayment to that country and the EU.
      2. The extremely poor rollout of the Apple Watch, not to mention the failure of the taptic engine from one plant, and the tattoo/dark skin problem with the heart monitor function.
      3. The very disappointing increase in the AAPL dividend from 47 to 52 cents. The largest, most profitable company in the world pays half the dividend of MSFT–and well below the market average of 2.0%.
      4. The unwarranted holding of almost 200 billion dollars in cash reserves at this point, and the rather “paltry” increase in the stock buyback program (by only 70 billion).

      Given these issues and a rather weak market overall, the decrease is but to be expected.

      1. 1- Yea, I’ll give that to ya. No telling what prostitutes politicians will do with this.

        2- No. Been reading as many stories on this as possible. Most “normal” people knew it was going to sell out and be tough to get. Only whiners and spoiled idiots that want instant gratifiction are bitching.
        The taptic engine failure, resolved by the other vendor and caught before rollout to public sales. That’s why you don’t rely on one source for important parts.
        The tattoo/dark skin problem, all optical heart monitors have this issue. Do a little research.

        3- Sounds like you want to whine just to hear yourself. Here’s the factual news piece on this: “The world’s biggest company just became the biggest source of dividends in the Standard & Poor’s 500 Index,” Joseph Ciolli reports for Bloomberg.
        “Apple Inc. raised its dividend by 10.6 percent to $2.08, putting it on the hook for about $12.1 billion in annual payments, according to data compiled by Bloomberg and S&P,” Ciolli reports. “That eclipses the $11.6 billion sent out in dividends each year by Exxon Mobil Corp., the previous title holder.”

        4- Getting taxed a second time by the US is not something to say “oh well” to. They have accountants that make more money than you do and probably experts in international finace. I’ll defer to their holding for the moment.
        Paltry increase in stock buyback? They don’t have to buyback any. I’d rather they didn’t and spent the money on more research and developement. At least that would show something for the money spent instead of making dumb ass analysts richer.

        1. Jeez, Think. Relax a bit. These are just a few published reasons for the stock pullback since Tim’s conference call Monday . . . not an assault on the company itself, for crying out loud. So what is YOUR explanation for the drop? Or do you have any? If you have no skin in the game, you wouldn’t care at all, right? But for those who put their money where their mouths are, such bad press matters a great deal. It’s easy to crticize when you just sit in the stands and watch while others play on the field.

          1. Thanks, I was a bit teed-off at the time and that post did come across harsher than it should have.
            The drop like all other drops on Apple make no sense at all. My belief is two theories:
            1- Corrupt leaches, thieves, vipers, etc, in Wall Street doing everything they can to manipulate the stock up or down to make a “quick” million or more.
            They are not content with buy and hold for 5-10 years. Instant gratification is their game.

            2- Someone else explained this in detail on a previous thread but I’ll summarize. A fairly large group on Wall Street just don’t like Apple. A- Mostly PC types and their phobia of “Macs are not real computers”. B- Punishment for Steve’s time at Apple and his basically giving Wall Street the finger and never giving them the time of day.
            So any chance of a sliver of negative news out there that can be somehow be written as a major problem with Apple, they pounce on it and feed it to the rags to be proclaimed as the next downfall of Apple. Nothing lasts longer than hate.

            1. There are many things that influence it, but here are mine;
              A) People look backward not forward. They saw Apple have superior product only to be beaten by hundreds of white boxes. They live at the altar of market share and equate market share with profit share (These are the same bozo’s that have bid up Amazon hoping that they will achieve monopoly market share).
              B) Investors see great risk in Apple’s strategy. Having only a few phone /computer models leaves you very exposed quality problems (as just seen with the Apple Watch). A quality issue on the iPhone could wreak havoc. Quality control is absolutely critical to Apple. Apple have been able to manage it very well so far, but it is clearly a risk issue.
              C) Short term momentum buyers are bailing out on the stock after it’s recent run-up.

      2. Ehhh, I think the “Irish Tax Issue” is a non-issue – at least to the extent Apple did something wrong or will suddenly have to come up with millions in back taxes.

        I seriously doubt Apple did anything more than take advantage of whatever tax laws and breaks were made available to it. It sounds like what people here have suggested that a government entity suddenly saw a company with potentially deep pockets ripe for some income redistribution.

        If Ireland decides to change the laws retroactively to in an attempt pocket some cash they’ll face a court fight from Apple.

        JMO

        1. I wrote up a diatribe about Ex Post Facto laws regarding both Ireland and the EU as a comment under the previous MDN article about the Irish tax issue. Both the EU and Ireland have laws that bar ‘after the fact’ laws, meaning that if Ireland changes its tax law, Apple CANNOT be dinged for back taxes. It can’t happen.

          The real issue is whether Ireland broke an EU law knowingly, in which case the issue would NOT be about changing any laws ex post facto.

          1. Amzn specially.. Redicilouse ! eps -0.5$ Loss so pe -800( wich is meaningless)
            But even if amzn was able to take their Eps to + 0.5$ , at current price the pe would be 800 +. ..
            800+ ….. Apple at that pe would be 6000$ per share . Many of us here who are investors could have our own privet islands and jets… Ferraris etc..
            Absurd ! 😳
            Some people have some seriouse brass hangin in that stock !

      3. Truax – on #1, yes and no. It’s actually old news that the market has been knowing for quite some time now. The EU tax probe was discussed in depth last year and analysts had already priced this in last autumn. It’s just SEC rules that it has to be disclosed in the 10-Q filing along SEC’s mandatory format (absolute worst case imaginable) . Check out the following summary of key things that can be found in the 10-Q:
        http://blogs.barrons.com/techtraderdaily/2015/04/30/apple-street-ponders-10-q-surge-in-commitments-overseas-cash-balance/?mod=yahoobarrons&ru=yahoo

        It’s more interesting reading for investors in the 10-Q that the amount of off-balance-sheet commitments for purchase of materials is unusually high at $23.1bn. This points to revenues in coming quarters being higher than current forecasts. According to Morgan Stanley, this number (off-balance-sheet commitments) has had a 98% correlation to revenues since 2007.

        1. Gee, I wonder why no one on TV has been mentioning this little tidbit. The great thing about AAPL is that it is the most widely covered stock in the media and interwebs. It doesn’t take long to get solid info on the stock to counter rumormongering or fearmongering.

    2. classic JAM reaction off the trailing edge of a BUN arc.

      People, we’ve seen this so many times with AAPL before, are we really surprised when it happens again?

  1. Just keep wasting Apple’s cash on those stock buybacks Tim. Might as well just pile it all up and light it on fire. Wall Street doesn’t care how many Apple shares are outstanding or what its P/E ratio is. They still think Apple is a fad and it’ll all come crashing down next quarter.

    Seriously, there could be 20 shares outstanding right now and they’d still be worth about $125-$130. Stock buybacks might work to elevate the price of some companies, but they don’t do a damn thing for Apple. Wall Street has zero confidence in this company.

    1. What a bunch of nonsense.

      “Wall Street” has had enough confidence to move it up something like 950% in the last ten years, including more than double since Tim has been running it.

      This is just selling by traders who made a correct bet before the earnings. It has nothing to do with anything. A year from now it will be about $170.00. Just own it and be happy.

      1. David, Wall Street is greedy and an idiot. But no matter how hard they try, they cannot keep Apple stock down.

        Always remember the Wall Street cry…. Apple is DOOMED, DOOMED I say!!! They cannot keep growing (starting in 1985 is) LOL

  2. This was not a sell off, it was a short off. The MM had over 118,000 $125 Call Contracts expiring tomorrow. They were heavily in the Money Tuesday, so they started hammering it down until they were less than a buck. They are now over 70 million shares short. After all those calls expire worthless, they will cover on Monday and run it back up. Everyone knows that except the SEC>

  3. Anyone who tries to make sense of our manipulated casino-like markets is a fool. But here is the deal, Apple is a great company with great prospects for future profits. Therefore, long-term the stock will go up, up, up. Just buy it now and sit on it for a few years. Ignore all the daily noise in the markets. It is all bullshit anyway.

  4. Oh come on, selling and a modest price drop on results is hardly new or surprising. A lot of people want to sell given this weeks interest but the price drops (slightly) due the number of sellers. I don’t think this reflects the intrinsic value (I see) in AAPL.

    More importantly, I don’t intend selling any AAPL for 3-8 years. Anyone hazard a guess what the price will be then?

    1. No clue but wild guess is

      $497

      Based on about a twelve percent growth rate …… Number could change when / if Apple enters new markets such as Business TV (not hobby) and Cars and who knows what else …..

      The important thing is the Leadership and Company Morals and I beleive Apple has the BEST Team Leader in Cook and a GREAT designer in Johnny Ive and a lot of other great folks with passion …..

      Passion / enthusiasm for your product / service cannot be stopped and success breeds success …..

      Apple is a leader and no mater what happens with daily price – even yearly price swings the long term right side of the chart will ALWAYS be higher than the left side!

  5. This clowning around with AAPL too shall pass.

    All this points out is that humans run the stock market and that in this day and age EMOTION and PERCEPTION are considered far more valuable than those silly things called HARD FACTS.

    “Num-Num, Nom-Nom” say the Wall Street sharks. Stupid day traders for lunch. (o_O)

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