“The short interest in Apple Inc. dropped by 2.7 million shares to 39.1 million ahead of earnings,” Douglas A. McIntyre writes for 27/7 Wall St. “The figures are for the period that ended July 14.”
“Apple’s share price, and perhaps the fall-off in short interest, are due to the anticipation of the iPhone 8, which is likely to come out in September or October,” McIntyre writes. “The expectation [is] that the iPhone 8 will be a big leap forward in terms of features and functions. “Samsung, its primary rival, does not have a popular product in the market. Most of Apple’s other competitors are Chinese companies that have a strong share of their home market but not anywhere else in the world.”
“Short sellers also have to know that Apple’s earnings are about to be released,” McIntyre writes. “If results exceed expectations before the iPhone 8 is even launched, the shares could surge. It has happened before.”
Read more in the full article here.
MacDailyNews Take: Optimism.
Apple will announce results on August 1st after market close, typically right around 1:30pm PDT / 4:30pm EDT. As always, we’ll bring your the results as soon as they are available (simply check our home page at 4:30pm EDT on August 1st). We plan to cover the conference call with live notes as usual. That link will appear on our home page around 4:45pm EDT on August 1st.
SEE ALSO:
UBS sees massive pent-up demand for Apple’s next-gen iPhones – July 25, 2017
Analysts expect Apple to give cautious guidance with Q317 report on August 1st – July 21, 2017
Will Apple’s August 1st earnings report finally deliver some good news for iPad? – July 13, 2017
Apple to release Q317 earnings, webcast live conference call on August 1st – July 6, 2017
It would seem a bit premature for Apple’s shares to be surging based on future iPhone sales. I figured Apple would creep back up to near $155 and then drop again to around $150 when Wall Street becomes disappointed in Apple’s earnings.
Apple is no Netflix or Amazon always going higher non-stop. I’m used to seeing Apple’s share price put on the brakes and go into reverse. I was hoping for tax reforms this year so Apple could repatriate some of that overseas cash to boost the share price mid-year, but no such luck. Apple stock will likely remain range-bound for the rest of the year.
The market is always focused on future prospects than current success. That’s why Netflix and Amazon has such high P/E.
There are some times like this where excitement over upcoming products will cause surges in APPL. Both the iPhone 8 and possibly the Home device are feeding into this. This is one of those time. The lack of interest in shorts signal that there is no sign of a drop in the near future.
I’m still tempted to sell some of my stock prior to earnings release on Tuesday and buy back if there is a drop. Tricky since never know what will happen.
I often sell just prior to a financial announcement, but I don’t get the feeling that there will be much fluctuation this time around, so am happy to hold.
Everything seems a bit quiet at the moment and there isn’t much talk about the results compared to normal.
Wall St.’s “pump and dump” and the cycle repeats. Making money off of money is fake money producing no wealth. Leeches and scumbags and the US Congress is in on it.
It’s more and more the world of the idle rich and the industrious poor.
Why is shorting legal? Betting on failure? Isn’t that anti-capitalism? No, please don’t try to explain it to me. I simply find it amoral.