Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings

“The biggest technology rally since October was knocked cold, as disappointing earnings reports punished Microsoft Corp. and left Apple Inc. in danger of its worst-ever loss of market value,” Callie Bost and Joseph Ciolli report for Bloomberg.

“Five days after Google Inc.’s earnings sparked the largest one-day increase in market capitalization, computer and software shares are tumbling. Apple, Microsoft and Yahoo! Inc. retreated on disappointing results,” Bost and Ciolli report. “Apple, the world’s most valuable company, dropped 6.7 percent, a slump that would wipe more than $50 billion from its value.”

“Futures on the Nasdaq 100 Index declined 1.2 percent at 6 p.m. in New York. The index slid 0.1 percent in the regular session, halting an eight-day rally of 7.5 percent that pushed it to a 15-year high,” Bost and Ciolli report. “Apple slid in late trading after iPhone shipments for the fiscal third quarter and the company’s revenue forecast for the current period missed analysts’ projections, raising questions over whether demand for the device has peaked. If the stock sinks that much in regular trading, the hit to market cap would be the second-biggest in the company’s history, after a $59.6 billion drop on Jan. 24, 2013.”

Read more in the full article here.

MacDailyNews Take: Apple sold 47.534 million iPhones, a 35% YOY increase, and posted record quarterly revenue of $49.6 billion and record quarterly net profit of $10.7 billion. Oh, such “disappointing” results! The woe, the woe…

And water is dry, pigs can fly, and Ballmer can dance.

Hopefully, Apple’s buyback program goes into high gear tomorrow while these irrational sales prices last!

SEE ALSO:
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015

47 Comments

    1. Stock price reflects expectations for the future, not past earnings. Growth in China is slowed not by Apple, but by the fact that the Chinese stock market just wiped billions of money from their growing middle class. Since Cook didn’t report any details on the Watch sales and had no guidance for how to recover plunging iPad sales or new Mac hardware, the traders are moving their money to other short-term prospects. They will come back when Cook announces something new.

      1. Chinese households are minimally affected by the stock market decline there, because few hold equities. Also Cook did say that the watch sold more in June than in April and May, contrary to your claim that he “didn’t report any details.” iOS 9 has some nifty new features to entice new iPad sales. And what do you mean by recovering sales of “new Mac hardware” when they are increasing market share in a declining market?

        1. You dont know China. In China, unlike the US, individual investors account for over 80% of its market. And they mortgaged their homes to get in.
          So yes, they are taking a big hit. Go and read up on Chinas finance secto before commemting about it.

      2. If Stock price reflects expectation, and they expect a company like Apple to produce over 30% growth shouldn’t the stock price reflect this and be a lot more then 10 P/E

        1. AAPL has historically had less institutional ownership than other comparable tech stocks. As a result volatility in the individual stock ownership affects AAPL more than others. You want the price to rise, convince other individual stock owners to buy more shares. Demand increases price after all.

      1. Google grew a lot less than Apple and growth slowed. Google addressable market is barely growing nad market share is likely declining yet it gains as much in market cap as Apple lost. Netflix has negative cash flows and hardly any profits and $10 bill in off balance sheet commitments, but goes batsH*t crazy. Just take Apple private and forget the Wall Street scumbags.

    2. Bizarro Wall Street. You’re using the proper term when you say perceived. Wall Street has created the grand perception that the company has no future. Understand this perception has no effect on Apple’s internal financial wealth as the cash pile continues to grow. Only Apple shareholders are affected by this perception. They end up the big losers every quarter.

      Apple may have no reason to change this perception. Tim Cook seems quite unconcerned and in fact looks quite ecstatic. I guess he doesn’t think there’s anything amiss with Apple’s share price drop. Maybe he welcomes it due to the stock repurchasing plan.

      I’ll go to sleep tonight and dream about some future where Apple is valued like Google and wake up refreshed tomorrow morning.

      1. And poorer. Rather than complaining and wondering why life won’t change just for you,change yourself. You see but you don’t react. Change. Learn. Do better. Don’t blame others.

      2. At todays closing pe .. Apple shpuld trade for 136 with new ttm eps .

        At msft pe pe … Apple will be 160+

        At goog pe.. Apple will be 260+

        At nflx pe . Apple will be 3200+

        And ready..
        At amzn pe .. Apple will be 10,000 +

        That is how much more each dollar of earnings/loss from those other companies are being valued .

        Absurd !

    3. You must be new to the Apple universe. It has been the same since 1998! Nearly every time that Apple posts increased earnings and record quarters the stock dips. It is uncanny.

      Perhaps the high frequency traders are trying to get an artificial dip so that they can earn billions on the bounce back.

      1. There is likely a whole breed of short scammers who do everything in their power to make Apple seem “beleaguered” even as their market valuation it still 4/4 of a TRILLION dollars. With over 200 billion of cash on hand.

        I still recall Apple touting having some 60 million Macs sold in 1994, when things were really bad. That was ALL the Macs. They sold 47 million iPhones IN A SINGLE QUARTER. True, they “only” sold about 5 million Macs, but are now pushing nearly 20 million of those every year as well.

        So yeah, the Business Insider (trading) and Financial (scam) Times are generally pushing an unsustainable agenda that, I’m sure, would be EVENTUALLY correct… after all, even the sun will fail in a few billion years or so. 😉

    4. Disappointing Record earnings … Oxymoronic as it gets !

      We expect a sprint runner to break the world record by 1 second..
      If he/she beats it by 1/2 second it does not count .. Its disaponiting , its not a world record, it dods not signify the best ! We will punish him/her .
      That is what wall-street charlatans are feeding the public .. 60 billion woth of it !

      1. Based on ttm eps and same pe as of today’s closing
        Apple should trade north of 136 ….
        And it will..
        But these WS games are hurting the credibilty of the market in the meanwhile !

      2. This has happened before. In fact “Record AAPL Quarter Disappoints” has been used before. Watch for 6S sales to astound. The market has discounted them, just as they did with the 5S, and if history repeats itself, they will be wrong.

    5. It’s very simple, young Padawan, as it is all in the perception.

      Remember back in the bad old days of George Bush, say Autumn of 2006? Unemployment was under 4.5% with a much larger percent of eligible workers employed than present times, yet we were constantly bombarded with how bad the economy was doing.

      Fast-forward almost 9 years with fewer people working fewer hours making fewer dollars along with less health insurance and an ‘adjusted’ unemployment rate of 5.3% and MY OH MY!!! HAPPY DAYS ARE HERE AGAIN!!!!.

      Yeah, it’s that same kind of bullshit misinformation all over.
      “We’re all tired of this kind of success. Let’s wreck it and see what happens…”

      1. I wonder.. It seems like you are cherry picking data to exempt Bush from the steep employment losses that occurred with the crash of 2008. The economy was pretty much in the toilet then. Employment numbers got better after Obama took office and the Stimulus was passed. You are absolutely right about the fewer dollars though. Income inequality is a big problem.

        1. ‘Income inequality’ is a fraud created by the Left to bring on more Socialism. If our economy were working right, this would not be an issue.

          Also, I didn’t ‘cherry pick’ any numbers. Do everyone a favor and go back, look at all the numbers from the mid-70s. They were pretty good under Clinton, too, but that was after similar numbers were called horrible under Bush I.

          The point is how the media slants results no matter how good or bad. They had no idea the crash in late 2008 was going to happen anymore than they understand how Apple will thrive in the next decade.

          Also, go ask yourself….why did that crash in ’08 really happen.

    6. This is atrocious journalism. Bloomberg should be ashamed. An accompanying video states: Apple Watch – Going the Way of the Newton PDA? Maybe their descent into madness corresponds with Bloomberg returning and Joshua Topolsky being shown the door.

      I mean for f**ks sake!

  1. Great, over 1/3 gains in net sales/profits = $50 billion market cap. loss because some analists couldn’t keep their heads out of their anuses, or each others anuses. They are real dogs.

    1. Here we go with the sensationalist “valuation loss” story again. Never mind that in the previous week or so, APPL went from about $120 to over $130. Based on “big media,” AAPL never goes up. It should be trading at a negative price by now. 🙂

      1. Of course, they’re fleeing to safety. They have Google, Amazon and Netflix to run to. Nothing can go wrong with those stocks. Heck, even Microsoft missed and didn’t get hammered as hard as Apple. Apple seems to be a pariah on Wall Street. It’s hard to pinpoint the exact reason but I somewhat think Wall Street really hates Tim Cook.

  2. Me thinks an investigation should be under way. The market is stealing 50$billion from Apple. How does a Goofle grow on smaller gains than 35 F’in%!?! Somethings rotten in DOWtown. I make a really nice incentive for a 35% gain in my business. Apple should just lowball projections to phuc with the street!! This is Political at the minimum and grand theft at worst. This is pretty scary that such punitive damage is inflicticed on a stellar performance. This is a way to scare off the small investor from this stock so the wolf pigs can move back up to the trough🙈🙀👹

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