Apple’s stock is taking a hit after today’s Q3 2015 earnings call. At the time of writing, AAPL is down 6.72 percent in after-hours trading to 121.97. Yikes.
Apple didn’t have a terrible earnings call by any means, which you know if you followed our liveblog. In fact, Apple displayed strong revenue growth and apparently beat internal expectations.
Despite this, Apple did fail to meet Wall Street’s estimates. Additionally, Apple stood by its decision not to reveal sales numbers for the Apple Watch, which launched in April.
Apple CEO Tim Cook insists he’s withholding Apple Watch sales data because the company doesn’t want to provide actionable insight to its competitors. He did say Apple Watch sales exceeded estimates within the company, but that’s as far as he went.
It’s far from unusual to see Apple stock fall after an earnings call — in fact, quite the opposite — although Apple showed strength in many key areas. Just about everything was up from the year-ago quarter except for iPad sales, which continued to slump, falling 17.7 percent to 10.9 million.
The company earned another $49.6 billion in revenue this quarter — up 32 percent — and $10.7 billion in profit. Wall Street analysts were hoping for $50.61 billion in revenue, though.
“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Cook in a press release.
Wall Street begs to differ.
George Tinari has covered Apple and technology for over six years. On the rare occasion that he’s not sitting in front of his laptop, you can find him eating, awkwardly socializing, listening to music or singing along loudly to said music. You can also follow George on Twitter if you need more complaints and sarcasm in your timeline.
14 responses to “Apple stock plummets despite optimistic earnings call”
“Apple stock plummets despite optimistic earnings call”
Been around long? This happens •every• time Apple posts earnings, even when the earning are huge! It will always be this way, for the investing world (read: ANALysts) always expect so much from Apple that it could never satisfy them. Sadly, most consumers also expect more, more more, now, now now… even though Apple has changed the entire tech world, and tirelessly continues to do so.
Apple fan-man, me? You bet.
Anyone in the West who ever wanted an iPhone has one. Those in the East are finding them less affordable for a number of reasons.
Financially, Apple is the worlds tallest house of cards built on the smallest foundation.
Which part of this don’t you understand?
And by the way, it has a name. It’s called concentration risk. Today’s profit is entirely irrelevant.
“Anyone in the West who ever wanted an iPhone has one?”
Huh? Where in the world do you get this absurd notion? What is your source?
“Those in the East are finding them less affordable for a number of reasons.” This remark is also ridiculous. It makes no sense whatsoever. “…less affordable…” What do you mean? “…for a number of reasons.” Then cite them.
“Financially, Apple is the worlds [sic] tallest house of cards built on the smallest foundation.” Your assertion not only has no basis, it reads like a message in Chinese fortune cookie.
And sorry, but concentration risk—something you obviously looked up on the Internet and don’t actually understand—has absolutely •nothing• to do with Apple, Inc.
Pure drivel, all of it.
The West? Use your eyes. Everyone has smartphones. If they wanted Apple they had it already. Some wanted bigger screens, the rest drink Jobs’ koolade. All that’s left is declining share.
The East? Have you read about China’s economic slowdown, markets and weak currency?
The house of cards? Apple has the largest market cap of any company by some margin. The foundation? A single, increasingly undifferentiated product.
Concentration risk is having all your eggs in one basket. Like one product for example. It makes for a horrendous portfolio risk profile.
Read about it.
Tim Cook was telling shareholders “Sell Apple and buy Google or Amazon if you’re expecting any returns. Don’t bother me with your after hours loss nonsense.” Meanwhile Microsoft took a pretty hefty loss and didn’t drop as much as Apple did. Big shoulder shrug by investors who actually believe in Microsoft’s future.
This is called a buying opportunity.
Carl Icahn just bought another billion shares.
“exceeded estimates within the company” When you forecasting selling 100 then it’s not hard to beat.
These guys are loony! Wall streets expectation for Apple was $50.61 billion in revenue. Apple made $49.6 billion, and we get this lower forecast crap. This is nuts.
What does that even mean? They sold around 3 million units by all recent analyst estimates. I fail to see your point. Perhaps they internally estimated 2 million units in 2 months? Which would still destroy everything the competition sold in all of 2014. Wall Street is the definition of greed and idiocracy and that’s been true for a long time.
File under “something that never happens after a record AAPL financial report”. Just when you think Wall Street has Apple figured out…
I wish that Apple just go private and let WS clowns buy whatever fcking ridiculous bullish stocks they like …Google and Facebook or whatever….
Google up 10% revenue in 1 sole quarter and the stock up 16%. Apple up 32% revenue and more every quarter and stock down 7%? WS clowns need their brain checked.
I am going to repost this.
“iPhone revenues are up 59 percent year over year, says Cook, which is a June quarter record.”
Problem 1: Apple did not sell as many iPhones as hoped/projected.
Problem 2: despite their propaganda to the contrary, the iPhone 6 did not overtake Android’s market share lead in most developed markets, nor did it slow Android’s growth in developing countries.
Huawei’s major sales and profit increase – overtaking Apple and Xiaomi in Chinese smartphone sales if their figures are to be believed – is huge, since everyone knows that:
A) Google is going to brand the next Huawei flagship as a Nexus in order to give Huawei access to carriers and distributors in America and other developed markets
B) Huawei is going to open up their app store at minimum – and possibly other Chinese app stores also – to Google apps with Google branding.
People are used to Apple making big profits. They have ever since introducing the iPod. What they were hoping to see was evidence of a game-changer: of Apple doing to Google and Android what they did to Microsoft and Intel. There is no evidence of that happening, and as a matter of fact except for average (but not terrible) sales for the Samsung Galaxy S6, there is ample evidence that it isn’t.
According to recent reports, Apple makes 92% of all the profits in all of the smartphone market. Android’s growth is irrelevant, Android does not make money. Android is a free OS. What makes money is hardware profits in this market. And there, Apple is printing money beyond what any of the competitors can dream of, with Samsung in close second place in terms of profits. Quoting Android adoption is completely meaningless.