Apple Stock Opens At $457.70, Down More Than 10%, After Financial Results

APPL-down

Apple stock opened at $457.70 this morning, down more than 10%, following its financial results on Wednesday. The Cupertino company announced $13.1 billion profit for the first quarter of 2013, a slight increase over the $13.06 billion it posted for the first quarter of 2012. But despite that increase, it’s clear Apple’s phenomenal growth has hit a stumbling block.

Q1 2013 was a record quarter for Apple, with more iPhones and iPads sold during this quarter than any other. The company saw a whopping $54.5 billion revenue over the three-month period — a nice increase over the $46.33 billion it recorded for the first quarter of 2012. So why is Apple’s share price still tumbling?

Despite the increase in revenue, Apple’s profit for the quarter didn’t increase all that much year-on-year. In fact, when compared against last year’s revenue, it actually shrunk. That means Apple is now making less profit on every product it sells.

Because its incredible growth has slowed right down, Wall Street has reacted against it. Apple may well have had a record-breaking quarter, and it may well be doing better than any other company in the world, but if its profit isn’t growing at an incredible rate, then investors just aren’t interested.

With that being the case, who knows when Apple’s share price will start rising again. Not too long ago, it looked like it was going to become the world’s first trillion dollar company — but that achievement seems almost implausible now.

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  • technochick

    People said it was implausible for them to have over $100 billion in cash or go over $600 a share ever. They did both. And they could rise up again. This is less about this quarter’s profit or even the whole iMac thing as analysts making overly wild predications and pushing out doom and gloom with this likely false notion that Apple has nothing left that came from Steve Jobs, and because of this, everything the company releases now will by default be overpriced crap

  • lwdesign1

    This is what I absolutely detest about the stock market. A stock price has nothing to do with the actual worth of the company or how well it’s doing or how many sales it’s made. Stock prices are susceptible to rumor, wild flights of fancy, malicious news articles and intentional manipulation designed to reduce confidence–even in the face of record sales. There are many who would love to see Apple fail, and these naysayers, analysts and pundits are flooding the infonets with doom and gloom as they’ve always done, and have been able to convince the stock buying public that Apple is dead, even when it’s never been more alive and healthy. Pay no attention to the men behind the curtains, for they are the ones that are smoke and mirrors. Apple will continue to produce and sell millions of amazing products and keep making billions of dollars just as it has been doing for 20 years. The stock shall rise again once people see that Apple isn’t dying. I bought APPL when it was at $14.

  • SpaceCynic1954

    You mean, I’m supposed to respect the opinions of Wall Street “analysts” whose firms were involved in two bubble economies that burst, engineered a global derivatives time bomb, and took the taxpayers of America to the cleaners in the form of a trillion dollar bailout? Let me know when that works out.

  • Jdsonice

    This is hilarious. Companies like Amazon who are borrowing money left right and center have no revenue are being rewarded by Wall Street whereas Apple is punished for record profits. How fucking stupid are wall street analysts?

About the author

Killian BellKillian Bell is a staff writer based in the U.K. He has an interest in all things tech and also covers Android over at CultofAndroid.com. You can follow him on Twitter via @killianbell.

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