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Apple Stock Bitten by Earnings Forecast, Jobs

pcworld.com — Concerns for the health of popular Apple executive Steve Jobs and a worse than expected forecast for fourth quarter earnings and revenue shot down Apple's stock after the market closed. The company's shares fell US$16.79, or 10.1 percent, in after-market trading of Nasdaq stocks.

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louiebaur 82 days ago, made popular 81 days ago

513 diggs
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hmd1987, on 07/22/2008, -10/+43poor billionaires.
- Cancerkitty, on 07/22/2008, -2/+5Ain't that the truth.
- judicar, on 07/23/2008, -0/+12right because only billionaires own stock in Apple.
- seldon452, on 07/23/2008, -0/+6I'm not a huge steve jobs fan but still, I feel bad he has/had cancer and I hope he beats it and goes on to invent many more shiny devices.
  - novemberwhiskey, on 07/23/2008, -0/+1Jobs has very little to do with the invention of Apple's products.
    
    He has little to no programming/engineering training. He is the businessman/spokesman for Apple.
    
    I don't even know about his business abilities.
    
    I do think he has great vision. And Apple wouldn't be what it is without him.
- scot333, on 07/23/2008, -1/+1lol dude, that was awesome. I got so much gratification out of that.
akpwnz, on 07/22/2008, -7/+34This doesn't sadden me.
- Janizzary, on 07/23/2008, -1/+2Steve Jobs does have a history with cancer, though. I hope he gets better.
  - MavRevMatt, on 07/23/2008, -0/+4I think he means that the stock going down doesn't sadden him, unless he's a heartless *****.
  - allnone, on 07/23/2008, -0/+4This is digg, so the latter could still get you dugg up.
lucy22, on 07/22/2008, -6/+25Alot of companies are suffering in this recession right now, even apple, I guess.
- Sfenton, on 07/23/2008, -6/+5I think Apple is being devalued because people are realizing how over-priced their computers are. In a market where people have less expendable income, buying an Apple i____ will not be an option.
  - soopafly, on 07/23/2008, -4/+1Dude that article is from 1970 :-/
  - fuxxx, on 07/23/2008, -2/+2Oh that's why desktop Mac sales have increased fourty nine percent since last year!
    Part of the reason behind apple's stock devaluing is that the profit margin on each piece of equipment they make is lower than previous years - definitely not because Mac sales are declining.
  - superkendall, on 07/23/2008, -1/+1I think your ranking is being devalued because you are an idiot.
- narcofiche, on 07/23/2008, -0/+1There's a big difference between not making a huge profit and 'suffering.' I highly doubt Apple has it bad in any aspect of their business right now.
skewl, on 07/22/2008, -2/+25Apple fourth quarter net income of $1.00 per share on revenue of $7.8 billion, lagging analysts' estimates in both cases. Apple is known to be conservative when forecasting ahead, uncertainty around the state of the global economy and demand for handsets, computers and other gadgets hurt sentiment on Apple's stock.
- Wootstapler, on 07/23/2008, -3/+2I can haz a quote?
  - AnotherJake, on 07/23/2008, -0/+2Yeah, I hear you. I don't know why you got dugg down. Change a couple words and you get dugg up for sounding genius? From TFA:
    
    "Apple forecast fourth quarter net income of $1.00 per share on revenue of $7.8 billion, lagging analysts' estimates in both cases. Although Apple is known to be conservative when forecasting ahead, uncertainty around the state of the global economy and demand for handsets, computers and other gadgets hurt sentiment on Apple's stock."
kloop10, on 07/22/2008, -6/+19so sad :(
- MavRevMatt, on 07/23/2008, -1/+3Why?
AmyVernon, on 07/22/2008, -6/+16further proof that no one's immune from the recession, even the maker of the most anticipated new gadget of the millennium... can't feel too sorry for the uber-rich folks, tho... lol
- pw378, on 07/23/2008, -1/+2Um, just because someone owns stock in Apple doesn't make them "uber-rich".
Mathieugothax, on 07/22/2008, -4/+14It just seems that most companies are getting hit by the US recession. Apple is still in an excellent position though, especially with Jobs leading them.
- peestandingup, on 07/23/2008, -4/+4"especially with Jobs leading them."
  
  For now ;-)
charlieville, on 07/22/2008, -4/+22I knew there was a problem when their new great release was the same thing only slightly cheaper
sogeshirts, on 07/22/2008, -3/+16I want to see a commercial with the mac guy almost jumping off a bridge with pc stopping him so they can both jump off the bridge together.
grated4life, on 07/22/2008, -14/+3Will hussein obama go after Apple's billions in gains? Or will google smart price the obama ads out of the adwords system? Stay tuned...
bernandoo, on 07/22/2008, -2/+13This happened yesterday.... again digg fails at providing timely content
- Appleologist, on 07/23/2008, -0/+1Actually… I believe this story made the front page sometime yesterday or this morning.
  - bacon_skoda, on 07/23/2008, -2/+1also fail.
    people on digg need to have this up before it happens.
    with mock ups and all.
Tatango, on 07/22/2008, -3/+4I heard about this a couple months back.... August is supposed to be the low month...idk
- pw378, on 07/23/2008, -0/+1That makes tech stocks a buy now, sell later opportunity..
tama00, on 07/23/2008, -2/+11WELCOME TO YESTERDAY!
- scot333, on 07/23/2008, -0/+1Its this type of humor that keeps me coming back to digg. Srsly.
Wootstapler, on 07/23/2008, -7/+2"Jobs has no plan to leave Apple." O RLY?
Reaktor5, on 07/23/2008, -3/+7This means BUY BUY BUY. But really, everything is low not just Apple.
And how does one go about start buying stock, I'd like to start getting into it? E-Trade?
- diggrnumber1, on 07/23/2008, -1/+2Use Zecco.com. E-Trade charges $20+ commissions, but zecco gives 10 free trades per month (i never use that many anyway). after that it's only $4.50 per trade. also, E-Trade might go bankrupt soon, so you might end up having to change brokers anyway if you sign up with them. E-Trade relies on its brand name recognition rather than affordability.
- scot333, on 07/23/2008, -0/+2I know what you mean. If you buy long term you're probably okay. The boat kinda left for AAPL before the first iPhone when the shares were at $92. However the 3g iphone wasn't included in this quarter's earnings. That is sure to be a burst in price when the figures come out this fall.
- pw378, on 07/23/2008, -0/+1Step 1, get a job and earn some money.
  Step 2, get an account at your bank or one of the online brokerages
  Step 3, click "buy"
  Step 4, forget you bought the stock and come back in 10+ years
clak, on 07/23/2008, -2/+12The stock closed at $162.02 today, not $149.89. The guys writing this article were looking at the after hours trading. So in reality, the stock lost $4.27 in value, which is 2% drop, not 10%.

I don't know why people make a big deal out of this. It happens every time Apple makes a quarterly report. It's called short selling. There is an edict on Wall Street that goes, "buy on the hype, sell on the news," which is exactly what happened. Apple ALWAYS reports conservative guidance, so that they can blow out expectations, but there are a lot of stupid investors selling their stock in a panic, because the hedge funds were selling, but then those same big firms, who started the panic, came back and bought the stock at a reduced price today, which is why the stock settled at a higher price.

Advice for the amateurs: Don't get into the stock market unless you understand how the game is played. The pigs get slaughtered.
- bacon_skoda, on 07/23/2008, -0/+4bought at $148 this morning. boo yah.
- bc289, on 07/23/2008, -0/+2they don't "make" earning reports, they release them.
  
  And yes, Apple always releases conservative guidance, but analysts know this. This is already factored into their expectations, and even this fell short of what they were expecting from a conservative management.
mariachi, on 07/23/2008, -4/+4-10% today, +15% tomorrow.
blacklilyninja, on 07/23/2008, -3/+1i don't understand....

if i had money i would be buying apple stock like crazy right now. but i don't... because i'm sad face.
RadiatedAnt, on 07/23/2008, -2/+6i just lost 60 cents :*(
seltaeb4, on 07/23/2008, -4/+2Now this is what's called "a great buying opportunity."

If you'd put $10,000 in Apple stock ten years ago, you'd be worth over $5,000,000 today.
- mj1903, on 07/23/2008, -1/+7No, it would be worth $760k.
  - seltaeb4, on 07/23/2008, -0/+1sorry... dropped a zero. $100,000 in Apple stock would be over $5,000,000.
mj1903, on 07/23/2008, -3/+4To all those saying that Apple is trading low or that now is a great time to buy: please stop giving advice. Apple is currently at dangerous prices (in comparison to P/E) that only people that can afford to lose significant sums of money should buy in at. There is no guarantee that Apple can continue growing at 25-30% per year, which is what the P/E implies, so an investment in Apple currently is more akin to gambling than true investing.

N.B. I own Apple stock but I own it at the price of $7 (split-adjusted), when the P/E was 12, not $162 when the P/E is 33!
- heyblue, on 07/23/2008, -1/+4Please stop wasting bandwidth with your informed logic. This thread is reserved for bias, hyperbole and misinformation.
- bacon_skoda, on 07/23/2008, -0/+2PEG is at 1.25 though. and yahoo says P/E is 25.39.
  not yet dangerous like Yahoo at 2.33 PEG.
- superkendall, on 07/23/2008, -1/+3You are insane if you think Apple is anywhere close to overvalued. They are firing on all cylinders from music to the iPhone to the iPod to computers, and any one of those legs could crumble away while still leaving the company growth enough to make the price as is seem like small potatoes. Now that the iPhone is really breaking out, but before the analysts catch on - now is the time to buy.
  - mj1903, on 07/23/2008, -0/+4The number 1 rule of investing is not to lose money which implies having a margin of safety. At its currently prices there is no margin of safety.
    
    Yes, Apple has been doing wonderfully and has been the best stock in my portfolio over the last half-decade but its current share price reflects a growth rate that is unsustainable long-term and potentially dangerous for an investor that 1) doesn't understand the market as most people don't on Digg and 2) can't afford to lose money.
  - pw378, on 07/23/2008, -0/+3If you are afraid of losing money, you shouldn't invest. So your #1 rule implies that anyone investing shouldn't invest.... which is quite illogical.
    
    High growth stocks have a much higher potential for gain at an elevated risk level. Different people have different risk comfort levels.. Over the long term, riskier stocks always produce higher gains. Some win, some lose, but the winners can be huge.
    
    Google is very high growth, and higher risk.. but I have made over 400% in 4 years. If I put 10% of my money into Google and 90% into an index fund, I would have made more on that "risky" 10% than I did on my "safe" 90%. Just don't give in to the knee-jerk reaction every time the stock jumps or drops...buy...hold... win... (usually)
    
    Google and Apple for the next 5+ years and you will be very happy you did.
  - bacon_skoda, on 07/23/2008, -0/+2Then short it already. If it is DANGEROUS.
johnpaul191, on 07/23/2008, -0/+2we'll see what tomorrow brings, after-market trading is impulsive and goofy. then again who cares about the day to day ups and downs of any stock, it's the overall trends for weeks/months/years.
Any company can take a major hit if they do not grow ENOUGH in their quarterly reports. that's why companies do panic moves like mass layoffs to make the books look nice in the short term (and protect the stock price). we shouldn't encourage that kind of behavior.
- superkendall, on 07/23/2008, -1/+1Except that Apple grew quite a lot, above forecasts - it is only the fact they gave a projection below analysts estimates (as they do every quarter, just as they then proceed to beat both the quarter after).
thomleidner, on 07/23/2008, -0/+3Considering Apple rallied up $14+ today it doesn't seem like investors believed Apple's usual sandbagging of the #'s.
theghoul, on 07/23/2008, -2/+2Steve doesn't look well at all. Apple may have a hard time keeping the momentum without him there.
Ubermann, on 07/23/2008, -0/+4Get with the times - its down $4.27 today. And based on speculation - earnings and revenue are strong. No need to dump it in my book.
Skull0Inc, on 07/23/2008, -2/+1I have an Apple. i Like Apple. However; what goes up must go down also...
- fracktica, on 07/23/2008, -0/+2Not if it goes up at a speed of 11 kilometers/second.
  
  snort.
diggrnumber1, on 07/23/2008, -2/+2I'm selling my apple shares tomorrow. I don't want to have to deal with the uncertainty of Steve Jobs' health (they essentially admitted that he has cancer by refusing to comment on it). I think its pretty lucky that the stock only went down 2.57%.
- superkendall, on 07/23/2008, -1/+1Business Week said they are 99% sure his cancer has not returned, and Apple has never commented on health issues in an earnings call.
  
  But Apple does not need Steve Jobs to execute for some time from the position they are in.
RajAtWork, on 07/23/2008, -0/+2What is this recession people talking about? Learn the terms before spreading alarmist b.s.
- clockdist, on 07/23/2008, -0/+1So what's the term? Economic slump?
flny007, on 07/23/2008, -0/+1Looks like that new mast for the yacht is going to have to wait!
digjam, on 07/23/2008, -0/+1Its up almost 10% today....(ofcourse from yest drop) so is Steve Jobs all good again?
bc289, on 07/23/2008, -0/+2Too many of you are way too confident. You look at a couple financial ratios - PE, PEG, hell some of you might even be ambitious enough to look at EV/EBITDA. Valuation is important yes, but it doesn't say quite as much as you might think. There's the EPS part of the equation as well which can be inaccurate, and if that falls, you're looking at a PE that's much higher now and is no longer at trough levels. Even if the EPS part is accurate, who is to say what is the correct multiple? When fundamentals are deteriorating, valuation doesn't matter. Being too confident will get you killed in a market like the one we're in right now.
nonsequitur668, on 07/23/2008, -2/+0Apple's worst transgressions are systematically whitewashed by the press. To counteract that whitewash, I will use the remainder of my space here to expose Apple for what it really is. To get right down to it, we must reach out to people with the message that all of the foregoing information has been served up as a necessary prelude to understanding the motive and force behind the current mad rush by Apple and its factotums to deny us the opportunity to take a strong position on Apple's traducements, which, after all, make excessive use of foul language. We must alert people of that. We must educate them. We must inspire them. And we must encourage them to build a better world, a cleaner world, a safer world, and a saner world.

Violence, mayhem, and insanity are the inevitable consequences of Apple's prevarications. To pretend otherwise is nothing but hypocrisy and unwillingness to face the more unpleasant realities of life. Now the surprising news: I recently overheard a couple of inaniloquent, deplorable psychics say that Apple is a perpetual victim of injustice. Here, again, we encounter the blurred thinking that is characteristic of this Apple-induced era of slogans and propaganda. The only way that we can fight Apple, the only way we can beat it, is to report as best as possible the facts and circumstances surrounding its anal-retentive roorbacks. But that's not all: It faces moral disaster in its neighborhood, political disaster in its country, and an impending world catastrophe with a blank and smiling countenance. I submit that everyone should stop and mull that assertion. Then, you'll understand why I don't just want to make a point. I don't just want to let Apple know, in no uncertain terms, that its problem is that it is thinking in a linear versus a configurational framework. I'm here to give an alternate solution, a better one. I don't just ask rhetorical questions; I have answers. That's why I'm telling you that it pretends to put power into the hands of the people while actually forcing me to endure its despotic tyranny in all its plenitude. That conclusion is not based on some sort of infantile, insufferable philosophy or on Apple-style mental masturbation, but on widely known and proven principles of science. These principles explain that one of the goals of mandarinism is to render meaningless the words "best" and "worst". Apple admires that philosophy because, by annihilating human perceptions of quality, Apple's own mediocrity can flourish.

I hardly need to tell you that I must ask that Apple's collaborators push a consistent vision that responds to most people's growing fears about the worst sorts of purblind harijans I've ever seen. I know they'll never do that so here's an alternate proposal: They should, at the very least, back off and quit trying to provide support to backwards banana republics and their resentful dictators. I honestly doubt we could beat this into Apple's head, but honest people will admit that Apple's vaporings are pauperism at its worst. Concerned people are not afraid to perform noble deeds. And sensible people know that if five years ago I had described an organization like Apple to you and told you that in five years it'd burn its opponents at the stake, you'd have thought me delusional. You'd have laughed at me and told me it couldn't happen. So it is useful now to note that, first, it has happened and, second, to try to understand how it happened and how it recently stated that everyone with a different set of beliefs from its is going to get a one-way ticket to Hell. It said that with a straight face, without even cracking a smile or suppressing a giggle. It said it as if it meant it. That's scary because a central fault line runs through each of its anecdotes. Specifically, my prime directive is to make the world safe for democracy. Stated differently, Apple is capable of only two things, namely whining and underhanded tricks.

I can reword my point as follows. Antiheroism is both a belief system and a material, institutional reality. After all, it takes more than a mass of picayunish drug lords to shoo away Apple like the annoying bug that it is. It takes a great many thoughtful and semi-thoughtful people who are willing to act against injustice, whether it concerns drunk driving, domestic violence, or even misoneism. Apple's followers claim to have no choice but to develop a Pavlovian reflex in us, to make us afraid to provide information and inspiration to as many people as possible. I wish there were some way to help these miserable, eccentric scabrous-types. They are outcasts, lost in a world they didn't make and don't understand.

Apple's most progressive idea is to call evil good and good evil. If that sounds progressive to you, you must be facing the wrong way. Whatever should be true of statutory and often ephemeral enactments in human jurisprudence, the fact remains that Apple, like many other squalid slanderers, has joined in with the chorus of furies who have been tearing away at the remains of rationality since the dawn of Derrida. I'll probably devote a separate letter to that topic alone, but for now, I'll simply summarize by stating that Apple maintains that it's okay to arrest and detain its enemies indefinitely without charge, without trial, and without access to legal counsel. This is hardly the case. Rather, there is growing evidence that says, to the contrary, that it thinks we want it to flush all my hopes and dreams down the toilet. Excuse me, but maybe if it feels ridiculed by all the attention my letters are bringing it, then that's just too darn bad. Apple's arrogance has brought this upon itself. Before you read this letter, you might have thought that the best way to make a point is with foaming-at-the-mouth rhetoric and letters filled primarily with exclamation points. Now you know that I am quite certain that Apple is one of those scummy sandbaggers that quotes the Bible but never reads it.
- prinzrob, on 07/23/2008, -0/+3banana
ISellDrugs, on 07/23/2008, -0/+0Apple has always gave cautious guidance for future earnings. This isn't anything new.
shacklebolt, on 07/23/2008, -0/+2yes i got 4 shares @ open 148.90
tucsonbass, on 09/18/2008, -0/+1If you are thinking about buying Apple stock make sure you watch this free video first. It is from Adam at INO.Com....Adam has just been kicking butt lately through all of this turmoil!

http://www.ino.com/info/246/CD3116/&dp=0&l=0&campa ...
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Apple Stock Bitten by Earnings Forecast, Jobs

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