“You might not know it, but one of the unsung heroes of the stock market so far this year had been Apple,” Danny Vena writes for The Motley Fool. “The iPhone maker was one of the few companies to buck the recent market rout, going into its earnings release up more than 31% in 2018.”
“With that kind of performance, investors were looking for a better-than-average earnings report in order to justify a continued ascent in the stock price, similar to its unexpected strength in the third quarter,” Vena writes. “Unfortunately a strong earnings report was dampened by weak guidance and an unexpected announcement, which conspired to strip Apple of its $1 trillion market cap.”
“In an unexpected move, Apple executives said they would no longer report the individual product unit sales figures for the iPhone, iPad, and Mac computers that have historically been part of the company’s financial disclosures,” Vena writes. ” The company’s muted growth estimates and the decision to stop reporting device unit sales gave investors an uneasy feeling, and took the sheen off an otherwise stellar quarter. Apple wants investors to focus more on the big picture, but sometimes the devil’s in the details.”
Read more in the full article here.
MacDailyNews Take: Proof of Apple’s pricing power wasn’t enough to assuage the market, but it will be soon enough.
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