Bernstein Liebhard LLP, an investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of Apple Inc. (“Apple” or the “Company”) (NASDAQ: AAPL) resulting from allegations that Apple and/or its executives may have issued materially misleading business information to the investing public.
On January 2, 2019, during aftermarket hours, Apple disclosed that its revenue for the first fiscal quarter of 2019 would be over 7% lower than it previously expected due to “[l]ower than anticipated iPhone revenue, primarily in Greater China, [which] accounts for all of [Apple’s] revenue shortfall to [its] guidance and for much more than [its] entire year-over-year revenue decline.” However, on November 1, 2018 during Apple’s fourth quarter 2018 conference call, CEO Tim Cook stated that “[o]ur business in China was very strong last quarter. We grew 16%, which we’re very happy with. iPhone in particular was very strong, very strong double-digit growth there.”
On this news, Apple’s stock fell $11.97 per share, or over 7.5%, during aftermarket trading hours on January 2, 2019, damaging investors.
If you purchased Apple securities, and/or would like to discuss your legal rights and options, visit Bernstein Liebhard LLP’s “Join Class Action” page here.
Source: Bernstein Liebhard LLP
MacDailyNews Take: Not a surprising development, however we fail to see how Cook describing a previous quarter’s activity relates to a warning issued in a subsequent quarter. Apple gave guidance for fiscal Q119 based on what they knew at the time and the facts changed or became evident during the quarter, so they issued a warning prior to their earning release on January 29, 2019.
January 29th should be a fun conference call, by the way. Almost as much fun as Tim Cook will have at Apple’s annual shareholders meeting in February.
SEE ALSO:
Wall Street analysts slash Apple target prices – January 3, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019
Two things Tim Cook just did that make Apple look guilty today – January 3, 2019
CEO Cook issues memo to employees after Apple slashes revenue outlook for the first time in almost two decades – January 3, 2019
Apple’s earnings warning means CEO Tim Cook now has a major credibility problem – January 3, 2019
Loup Ventures: We continue to expect AAPL to outperform the rest of FAANG in 2019 – January 3, 2019
Open thread: Does Apple need new leadership? – January 2, 2019
CEO Tim Cook on why Apple lowered first-quarter revenue forecasts – January 2, 2019
Apple CEO Tim Cook issues public letter to investors, lowers guidance – January 2, 2019
Sharks and bottom feeders are circling.
No news here. Lawyer looking for easy money. Business as usual.
So on Nov 1 Cook had no idea or indication that demand was softening in China but 2 months later they are suddenly aware of a $9-10B loss for the quarter??
The first thing Cook did was to hide the decline in IPhone sales from investors.
Then he and his personal accountants carefully hid his money overseas.
Then he let his fanboys and paud shills here to talk up AAPL on blogs.
THEN he announced the first Apple earnings miss in two decades.
It didn’t occur to Cook to offer better products at better prices.
Typical CEO behavior.
Has he heard of disclaimers for forward looking statements..
World is not static moton !
Plus..
At last earnings , when Tim made his comments they had a 16% growth in china.
Having met Trump, perhaps Cook should have foreseen how his inflammatory trade trash talk could anger Chinese consumers into hating things American. This anger and ill will won’t just disappear when a deal is reached, either. Trump cares not that his poisonous tactics damage relations as his only consideration is short term cash.
It’s all on trump. He has instigated a boycott in China not only against Apple but against all U.S. companies. Sue trump. Until that demented asshole is gone the market will be a disaster.
Scum lawyers.
Trump owned shutdown.
Trump racks up record national debt. Up $2 billion since he took office.
Trump recession will arrive momentarily.
Great brand management Donald. Eric and Junior are doing a great job. Dumb and dumber.
Oh yeah, the Mexicans will pay for his wall
I bet you’re one of those people who isn’t allowed to purchase a firearm in California.
LIve in Florida and have three. More and more of us gun toting Floridians are coming to our senses everyday regarding the orange moron.
Typo – $2 trillion not billion