“Reading different news and financial website you can find three stories a day telling you to buy Apple, and at the same time find three articles to sell the stock. On any given day I hear the next price of Apple to be $170 per share, and another for it to drop more,” Tom Dorsey writes for Seeking Alpha. “I understand why investors are confused and don’t know where to go.”
“As an analyst, I reviewed Apple’s first quarterly financial report and I liked most of what I saw,” Dorsey writes. “Then the naysayers in the marketplace ripped Apple’s drop in overall earnings and their projections with a massive amount of press reporting to encourage the drop in stock price from $105.08 on April 25, 2016, to a close on April 29 of $93.74.”
“Some analysts compared this year’s quarterly revenue of $50.6 billion to last year’s (same quarter) of $58 billion and cried the loss of $7.4 billion of revenue. I remember Apple just released its S6 series iPhones in the U.S. in the fall of 2014 and customers were still trying to update into first quarter of 2015. Apple also expanded sales to other countries that were not able to get them in 2014,” Dorsey writes. “Fast forward a year and Apple is preparing to release its next iPhone this fall, but sales exceeded expectations for this quarter. Although the revenue was down, this is part of the cycle of a new product last year and this year we are seeing the pre-release waiting period. This was not a bad quarter for Apple – just some analysts did not bring in all the facts for their readers.”
“The company reported net income of $10.5 billion in 90 days,” Dorsey writes. “Not too many companies are doing that consistently.”
Read more in the full article here.
MacDailyNews Take: Well, 91 days* to be exact, but the point remains.
*Apple’s fiscal Q216: December 27, 2015 – March 26, 2016
SEE ALSO:
What everyone’s missing in Apple’s across-the-board earnings miss – April 28, 2016
The silver lining in Apple’s across-the-board miss – April 27, 2016
Apple reports earnings miss in Q216 – April 26, 2016