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Apple’s share price drop is just plain silly

“The initial response to Apple’s earnings release was not good,” Evan Niu writes for The Motley Fool. “Shares promptly tanked by 9% immediately following the report, erasing $66.5 billion from the Mac maker’s market cap in a matter of minutes. Shares recovered modestly after Tim Cook and company had some time to explain the figures.”

“Revenue jumped 33% to $49.6 billion, gross margin expanded to 39.7%, and net income was $10.7 billion,” Niu writes. “While iPhone units jumped 35%, iPhone revenue soared 59% to $31.4 billion. That was thanks to strong iPhone average selling price of $660, an incredible $99 jump from a year ago. Apple also said it enjoyed the highest rate of Android switchers ever during the quarter, while the App Store hit a new quarterly revenue record. iPhone sales were up 87% in Greater China, compared to the market’s 5% growth there. Furthermore, only 27% of the iPhone installed base has upgraded to a 6 or 6 Plus, so there’s still plenty of room to run.”

“Apple reports a strong quarter, but shares still fall,” Niu writes. “Investors were disappointed in the company’s guidance, but they shouldn’t be.”

Read more in the full article here.

MacDailyNews Take: In professional golf, you know what they say?

“Fortunes can be made during the Silly Season.”

SEE ALSO:
Wall Street blew it: Apple’s stock slide isn’t the company’s fault – July 22, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
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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
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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

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