Wall Street blew it: Apple’s stock slide isn’t the company’s fault

“For any other company, Apple’s quarterly earnings report Tuesday would have been great news: Revenue was up 33%, net profit was $10.7 billion, earnings per share hit $1.85 compared to $1.28 a year ago,” Tim Bajarin writes for TIME Magazine. “Yet Apple’s stock is down about 4.5% in midday trading the next day. Why?”

“Wall Street analysts predicted Apple would sell about 48.7 million iPhones over the last three months, while Apple sold only (only!) 47.53 million,” Bajarin writes. “That discrepancy disappointed the financial world.”

“But little of this was really Apple’s fault. Wall Street was too optimistic when it came to iPhone sales,” Bajarin writes. “As I look over the entire spectrum of Apple’s earnings, which included adding $9.3 billion to its cash holdings that now total $202 billion, and its growth in PC market share with sales of 4.8 million Macs, it appears to me that Apple’s position in the market remains strong with a lot of growth still ahead.”

Read more in the full article – recommended, as usualhere.

MacDailyNews Take:

Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
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


    1. It went down because of doomsayers, group-think, and stock manipulators. The “experts” have been screaming “the sky is falling,” for decades, and it never fell. Instead, Apple continued to grow, and grow and grow into he largest company in the world. The smart money is long-Apple.

      1. Gee, those economics seem to be pretty darn good compared to late 2008. (Or maybe I’m the only person in the country who’s doing better than I was then.) So you’re saying Birdy has it right?

        1. Really! Don’t know about you, but I was making $25 an hour more in 2008, and my insurance premium for my family was nearly half of what it is today, and it was a LOT BETTER! I had more freedom of speech without the worry of being censored because of rampant PC, I trusted my neighbors more, felt more secure from radicalized zealots, and generally felt happier… don’t know, maybe that’s just me.

          1. Good grief, always gotta blame somebody for your shortcomings. Get out of your funk man! I’m making more than I ever have and my insurance premiums are virtually the same they were in 2008.

            You have all the same freedoms you ever had. You sound like a whiny little thing.

            1. Good for you… I haven’t blamed anyone. I’m merely stating FACT! BTW… you actually feel safer today? In spite of the fact that the world itself has gotten much worse…. then my hats off to you. enjoy!

        2. Let’s see my medical out of pocket went from $2500 to $13,200. My electric bill is now up $100 as Obamer said that it would necessarily skyrocket. My taxes have seen a huge spike, to pay for all the new medicaid give aways in my state. My wife is making $12 a hour less, because her job went away and had to get a new one. We have an inflated stock market only because the Government has been endlessly pumping made up money into the market place creating yet another hug bubble. Obama will have doubled the national debt before he leaves, creating the end of the U.S. as we will never be able to pay that back. We’re Greece in a few years. D.C. is still giving away tax payer money, buying votes with money we don’t have. Nearly half the country is not working and supported by the government. Oh yea Gregor things are really great, you’re a nitwit with his head in the sand.

          1. Gee, I’m glad we’re blaming the near economic collapse of the country on a guy from Chicago who was running for president when the economy went to h***. We all know that with time travel anything is possible. If you did not lose your job thanks to Obama’s reverse time travel, and you had medical insurance, then it is about the same as it was and the rate of increase is actually lower on average than before. (Look it up. And don’t distort. It is the rate of increase, not the fact that it always increases.) But if you lost your job, then I guess that’s really Obama’s fault because he is most certainly able to travel back in time.

    2. The stock went down because the stock market is nothing more than a ‘belief system’, no different to bookmakers adjusting the odds on a race, depending on the projected losses or wins for those inside the stock market machine.

      The greatest con is they use other people’s money, so their losses effect other people’s lives, not their own. The wins are big for them, with a small ‘dividend’ pay out to keep the punters happy.

      It doesn’t matter what Apple do. They could beat every estimate the stock market anal-cysts put out (and how often are those bottom feeders correct?), but stock would go down over ‘fears for future market share’ or some other manufactured story of being doomed or say, sales plummet 90% on Watch, because market share is king in stock market speak. Own the entire market, while making losses and watch your share price soar.

      Stockholders ‘own’ their share of the company, or so they are told. Ever ask what that means? Say you have 10000 Apple shares, what does that mean in reality? You can go to Apple and collect Tim Cook’s desk, bought and paid for by the company, cos it’s yours?

      Can you borrow or use Schiller’s company car or any company car or private jet? Ask a stockholder, you’re money has paid for those things, but you can’t get access to what you are meant to ‘own’.

      Can you turn up and demand to see inside Apple’s secret labs and find out where the ‘magic’ is added? You paid for it, you own it. Are the bricks and mortar in your share of ownership, marked with your name? Can you choose what colour your bricks should be? I thought not.

      That $200 Billion Apple has in the bank, that’s your money, you own the company, so why hasn’t it been given back to the owners? It’s their money.

      Oh because Apple are buying stock back is one answer, Apple has a buyback scheme in place. Okay, how does that work? We use the owners money to take away the owners’ share of ownership? Who’s shares are being bought back? The ones issued to the guys/ girls in charge as a pay deal? Ka-ching! Who gets the money? The owners. . .no, not quite. Those in charge of the company get the cash, the owners get a small boost in how much they own – whoopee! I’m rich (on paper yeah, but who got the cash to get that new car, jet, mansion or yacht? Yeah your employee, the one running the company on behalf of all the ‘owners’).

      Where are all those disgruntled owners who have received the letters, you know the ones that must be sent out saying:

      “Dear owner,

      It is with regret that we, the company you own, have decided that we have too many owners now and so have decided to let some owners go.

      We appreciate all the years of dedicated ownership you have had and hope your next ownership is as successful as this one.

      Kind regards,

      Yourself – the owner of the company”

      It’s not just Apple, it’s every company who has floated their stock. Own Microsoft stock? Ask for a refund or compensation over the Nokia write off, it’s your money they wrote off, you own the company, at least that’s what everyone on the inside of the ‘stock belief system’ wants you to believe. Have any execs responsible for the Nokia purchase lost anything? Thought not.

      The stock market is a convoluted betting scheme where the ‘real’ performance of companies, has little to do with anything. Those running the companies amass huge wealth with zero risk to their own fortunes.

      When things go tits up and companies fail, those running them, walk away, fortunes intact, while the owners or stockholders, loose everything. Just look at Lehmann Brothers as an example.

      1. I just last Spring sold enough AAPL to pay for a new house. That’s how owners reap their rewards. Last year at this time AAPL was under $100 per share. So reading your long, but completely silly comment was a waste of time except for the comedic value. But thanks for playing. Check out the lovely consolation prizes on your way out.

        1. So you’re saying the only way to benefit is to NOT be an owner by selling. Whether you like his statement or not, it definitely has a ring of truth, and one I really hadn’t thought of.

          1. 1) you get some dividends if you don’t sell

            2) in all ‘product’ business you get money when you become ‘NOT be an owner’ i.e you if are a car salesman you only get money when you ‘sell the car’ i.e become ‘not an owner’ anymore. So what is difference?

            3) ‘Ownership of a company via stock’ is tricky topic and debated even by the courts.
            You can’t like go and take Tim Cook’s desk but you exercise control via voting. Stockholders vote for BOD who hire the CEO. In theory if you have sufficient stock and thus voting rights you can ‘hire ‘ a BOD which can order the CEO to give you his desk …. or if the CEO refuses the BOD can replace him.
            In short via voting you control the CEO and thus the running of the company: the compensation of the executives, dividends etc.

            Ownership of the stock can be seen if the company is sold, shareholders and other stakeholders (like employees who have pensions or other compensation) divide the sale profits and the cash and other assets after liabilities are death with.

            the wonder of being a shareholder is that you gain as the stock price increases can be INFINITE but your risk is only the price you paid for the stock initially and it’s gains. The limit of your liability if when the stock falls to zero, there is no debt liability beyond that if the company goes into debt, you can’t be sued for debts — but your 100 can increase to a million if the company booms.

          2. While your comment appears to be mischievous in the way it’s written, it’s fundamentally correct. Dividends can earn you some money while you hold an investment, but you only get the big rewards from the investment when you cash it in and am no longer an investor. However by holding on to those shares, you do benefit if their value increases by the time that you sell them.

            I’m another one who lives in a house mostly paid for by selling some shares in Apple, In my case they had increased in value eleven-fold after I bought them. As I now live comfortably without paying rent or a mortgage, I’ve been able to buy more shares and the new AAPL stock has still increased in value quite sharply in the 30 months or so since I started buying more, while the dividends are similar or better than most savings accounts.

  1. What’s being painted here as a “sell-off” and “stock slide” is no big deal. It’s typical profit-taking. Apple was UP almost DOUBLE this drop during the last two weeks. And the AAPL sellers who sold at the day’s low point probably feel stupid, because smart long-term investors got their shares for a discount.

    1. It’s no big deal and it’s also entirely predictable and I have seen this played out for several years now. I’ve been a long term holder of AAPL and for the last few years have sold some of my stock in the run-up to financial results and then bought them back shortly afterwards.

      It hasn’t happened like that every single time. There were two occasions when the stock didn’t drop and I lost out slightly, but the other nine times, I was able to buy back more shares than I sold – sometimes quite a few more.

      I have two sets of APPL, one lot has been bought and left for many years, which dividends used to buy extra shares, while the other lot has been actively traded in anticipation of predictable fluctuations around financial results or iPhone releases. The actively traded shares have grown significantly faster than the ones I held, but of course it’s a much more risky strategy.

  2. Apple’s failures to meet expected sales figures (whether or not this was a fault of Apple) and Apple’s reluctance to provide full disclosure of Apple Watch sales data apparently spooked the market gurus and speculators.

      1. How sad that such brazen stock manipulation is allowed to continue without any intervention by the Feds. Maybe the Feds are conspiring with Wall Street hoodlums. Add to this is the media’s stony silence. Well, that means Apple is totally f****ed.

  3. A few days ago they said the analysts were all over the place with their predictions, so what exactly does ‘Wall Street Analysts prediction’ mean?

    Is it a group average, do they select just one of the many and go with that?

    In fact how many times have they got it right? Never from what I can see on Mac Sites.

    Can anyone tell me how the figures are arrived at?

  4. Apparently about 8% of Apple’s stock is owned by idiots that can be duped into selling by the Wall Streeters who make their money by convincing idiots to sell stock in a company that shows no signs of distress. Then they buy it from those duped, and make money on them in another couple of days when all the BS clears and the Apple reality sets back in. Another analyst I read today says now’s the time to buy. Apple’s P/E ratio is about 15 which is less than half the average of the Nasdaq avg. AAPL stock value been going up at 100%/yr for two years now. I’m keeping mine. Their aren’t many investments out there with that kind of growth. In 5 yrs it’s gone up 250% even with that horrid slide in late 2012 and early 2013 to half it’s value.

  5. Amazon shareholders must be laughing so hard at Apple shareholders for sticking with Apple. Over the last five years Amazon has returned more money to shareholders than Apple has (share price growth) and Amazon is barely making any profits at all. I guess it just goes to show that Jeff Bezos is smarter than Tim Cook when it comes to making Amazon a worthwhile investment. It’s no wonder Amazon has a much higher institutional ownership than Apple.

    It’s amazing how Apple has all that money tucked away and the only thing it can think of doing is to buy back shares. So far that’s just been tossing cash down the toilet bowl because up to this point it’s done absolutely nothing for Apple shareholders. Amazon has no buybacks or dividends but the stock is forever rising and investors are very happy with Jeff Bezos. Jeff Bezos is respected by Wall Street and Tim Cook is reviled.

    My point is Jeff Bezos has done far more for shareholders with far less than what Apple has. Amazon has never been considered a doomed company like Apple has. Whatever Jeff Bezos does for Amazon, Wall Street loves it. Everything Tim Cook does for Apple, Wall Street thinks it’s a big mistake. As far as Wall Street is concerned AppleWatch is a bigger flop than Amazon’s Fire Phone and that’s rather insulting. Would I ever give up my Apple stock for Amazon stock? Hell, NO! Over twelve years I’ve owned it, my gains are well ahead of Amazon’s gains, although I’m not sure how long that’s going to last. Even so, I’ve got nothing to be ashamed of for choosing Apple. I think the company is terrific and so are its products. However, the stock needs to get a little bit rejuvenated but that may happen in time.

    1. Have you even looked at the 1-2-3-4-5 year charts of amzn vs apple?

      If you have and you still insisted on writing the above.. U must love to sound like an ignorant fool.

  6. Apple has multiple options to defend itself, such as making as much money as possible to purchase back all their shares bit by bit. Because Apple is making so much money, it is difficult for other companies not to envy Apple. From time to time some hilarious articles resurface bashing the cons of this company that don’t actually exist. It doesn’t make sense, it just gets dumber and dumber.

  7. If you have seen the expectations for the 4th quarter you will understand why the shares went down.

    Apple is providing the following guidance for its fiscal 2015 fourth quarter:
    revenue between $49 billion and $51 billion
    gross margin between 38.5 percent and 39.5 percent
    operating expenses between $5.85 billion and $5.95 billion
    other income/(expense) of $400 million
    tax rate of 26.3 percent”

    This is not really brilliant is’t it.

    1. not sure what you are getting at

      the numbers look great
      year ago quarter revenue was 42 billion which means Apple is expecting about 9 billion increase or 21% increase in revenue.
      The stock went down because Apple’s going to get a 20+ increase in revenue? after a blockbuster 3 quarter? (increase would be even more significant except for exchange rates).

      4th quarter is usually the quiet quarter before Christmas. and without much of the new iPhone sales (people are holding purchases until the new phones go on sale probably in Sept)

  8. Let’s see (iPhone sales/predictionX100):

    47.53 / 48.7 X 100 = 97.597%.

    So stockbrokers and analysts wishful thinking regarding selling numbers of a device which represents 67% of all Apple’s revenue was fulfilled in roughly 97.6% and because of that the stock went down by 4.229%? Give me a break! It doesn’t make any sense!

    Even if these predictions were right from the beginning, meaning that Apple should easily sold as many iPhones as these scumbags predicted and even if – basing on that single assumption – the stock was overvalued by 4.229% than a 2.4% of under-delivery in the iPhone department shouldn’t affect the stock this way. A little performance gap might always occur as a result of many factors including weather conditions and its impact on the willingness of people to shop. I mean people but – hell, why not – people and also stockbrokers! 😉

    Apple might as well sell more products than in the predictions. For analyst or investor a 2.4% slide on sales while 33% rise in the revenue growth it’s all going to be a matter of common sense if he/she will call it a disappointment. I guess the only reason of that devaluation was a penalty for Apple for not meeting all Wall Street’s delusional assumptions.

  9. macnificentseven48, Tim Cook is not CEO of Apple in order to reward shareholders…he is there to see that Apple makes the best products in the world and continues to make the best products in the world. I’m not saying you are ignorant, but I am saying your comments are ignorant. Do a real comparison.
    Apple stock always builds up before earnings results, and profit is always taken thereafter, and then it builds up again and goes to a new high…look at the charts. Don’t forget that a new iPhone is coming out in two months and consumers are smart enough to upgrade forward and not backward 10 months ago. Considering that, iPhone sales were phenomenal, with less than 25% of total iPhone users owning an iPhone 6 or 6plus, the upgrade numbers should be above the atmosphere after the September spec upgrade and the Christmas quarter. I don’t agree on everything with Tim Cook, but I am glad he is the CEO and not Bezos and especially you, macnificentseven48! By the way, AAPL stock is currently right back about where it was this time last week.
    Please look at the real charts and then reply.

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