“Next week, all eyes will be on Apple at its WorldWide Developers Conference,” Bill Maurer writes for Seeking Alpha. “This annual event is mostly used to show off the company’s newest operating systems, but sometimes we see new products. While this event is always a glimpse into Apple’s future, there always are high expectations going in. Perhaps that’s what makes it the stock’s worst week of the year generally.”
“Ask a large enough number of investors or Apple enthusiasts, and I’m sure you’ll see expectations for every product line to have something new unveiled at WWDC. There are even rumors of a new iPhone SE and possibly HomePod coming at the event,” Maurer writes. “As product expectations pile up, it only increases the chance for disappointment, so when Apple doesn’t release a ton of shiny new gadgets, the stock tends to sell off.”
“The week of WWDC usually means a lot of red for the stock. Since 2001, the only WWDC week that Apple shares finished higher was in 2014, and that was a unique time because investors piled into the stock right before the 7 for 1 stock split,” Maurer writes. “Of the 16 weeks that shares have declined, the average loss has been 3.86%, basically the average of the last two years as well.”
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MacDailyNews Take: If we could predict future near-term stock prices, you wouldn’t be reading this sentence.