Yet somehow you just know Apple’s stock is going to tank… - Macenstein

Yet somehow you just know Apple’s stock is going to tank…

Well, Apple just posted record profits once again, and you know what that means – Apple’s stock will tank tomorrow for no reason. As an Apple stockholder, I have noticed that nothing brings down Apple’s stock faster than good news. Oh well, see if you can see anything here for Wall Street to bitch about…

Apple Revenue
Apple predicted $6.8 billion revenue, $.94 per diluted share profit.
TheStreet predicted $6.9 billion revenue, $1.07 profit per share
Actual numbers: $7.51 billion , $1.16 profit per share.

That seems like good news to me, but what do I know?

Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The Company sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter. Quarterly iPhone sales were 1,703,000.

Well, I suppose Wall Street will likely focus on that 1% iPod growth, and declare a fire sale on Apple stock. But I think it’s great that Apple has once again begun making real money on its Mac lines, and can stop relying on the iPod crutch.

“We’re delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters.”

“We’re thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00.”

8 Responses to “Yet somehow you just know Apple’s stock is going to tank…”
  1. Billq says:

    Wow at 4:30 CST it is down $5.54… sigh..

  2. Mitch says:


    The fall in stock price that seems to follow Apple’s stellar earnings reports is based on investor disappointment of guidance for the upcoming quarter. The stock market is wacky.

    As for Apple’s quarterly results – HOLY COW! Apple crushed.

  3. Johnable says:

    Surely you must know that the day traders ride the stock up prior to the quarterlies and then dump the stock–regardless of the news. Happens every time.

  4. Kheric says:

    You’re missing the number one driver for a stock price…the future. Every quarter companies typically note what they expect for the next year, this is called “guidance”. Apple’s guidance for the next quarter is an EPS of $1, where Wall Street analysts predicted $1.11 per share.

    So, go to and look at the after-hours trading. You’ll see that it plummeted and then rebound. It plummeted because it missed the street’s speculation. It rebound because for the last two years Apple has beat their guidance in every quarter!

    Only thing I don’t know about is their prediction for making 10 million iPhone sales by the end of 2008…

  5. ma77 says:

    still hard to believe that Mac’s still only have a 7.5% market share.

  6. Killer's Dad says:

    Thanks for the Bee-Eye-Itch. AAPL is now +$7.01. I attribute it all to you because typically the price does fall on good earnings news.

    Just think about making a $1,050,000,000 profit in 3 months. Dat mus b ny-ice!

  7. Killer’s Dad,

    You are right to attribute it to me, but it is not because of my bitching, it is because I sold half my AAPL stock this morning.
    -The Doc

  8. Killer's Dad says:


    I bought AAPL @ $12, sold it @ $18 and watched it go to $70 before splitting and rising $200 before dropping to the $120a and coming back to $170.

    I figure I could own all my appreciated shares @ a basis of $6 if only I had NEVER SOLD.

    So I ain’t NEVER gonna sold them stocks again.

    BTW, I have an acquaintance who bought AAPL when it went public in 198? 10,000 shares is now something like 50,000. His basis is like $1?

Leave A Comment


Click here to inquire about making a fortune by advertising your game, gadget, or site on Macenstein.