AAPL Down 11% in After Hours Trading
AAPL Down 11% in After Hours Trading
by , 6:25 PM EDT, July 21st, 2008
Shares in AAPL plummeted more than 10% in after hours trading, following the release of Apple's third quarter financial results. As of this writing, shares traded at US$147.56 per share, down $18.73 (-11.26%), with investors seemingly worried about Apple's September quarter guidance. The stock had posted a small gain in the last hour of the regular trading session.
Apple announced a record June quarter, with revenue of $7.45 billion and profits on $1.07 billion. The company grew iPod sales, and saw a record quarter for Macintosh unit sales. While those results beat analyst consensus of $1.07 per share in earnings, with revenue of $7.36 billion, Apple disappointed with its 4th quarter guidance.
Apple CFO Peter Oppenheimer announced guidance of $7.8 billion in revenue, with earnings of $1 per share. Wall Street had been looking for $8.3 billion in revenue with earnings of $1.23 per share. The after hours market took that guidance as a disappointment, sending the shares lower.
The after hours market only affects those shares actually traded during the after hours session, but it can be an indication of which direction the market will head once the next regular trading session opens. News from events that take place after the markets close are what tend to have the biggest effect on any stock's after hours activity.
Historically both after hours gains and losses have tended to be more extreme than regular trading activity during that next session. The Mac Observer will be watching the markets Tuesday morning to report on Apple's activity.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
Observer Comments
Mon Jul 21, 2008 7:48 pm Subject: Short AAPL after conference calls
It is incredible how they never learn. Or are they attempting at forcing Apple to behave like they want? C'mon, give us optimistic guidance! Do like the rest! Fool us, puh-leeze!
The story repeats itself unto boredom; Apple sets new records; earn more than these people expect them to, ship more etc. But then they deliver a somewhat pessimistic - or should we say realistic - guidance, and the Street throw their arms in the air and start screaming hysterically: Sell! Sell! Sell! They are going down! Everything is lost! The ship is sinking! Eeeeeeeh!
Or is it something we ordinary people do not understand?
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