Zaky: Macworld Bow-out A ‘Boon’ For Apple
8:12 am, December 17th, 2008, Ed Sutherland
Photo: Cishore/Flickr
There may be a silver lining in Apple’s announcement it won’t attend future Macworld Expo trade shows. Despite the downgrades and talk of CEO succession planning, one analyst says Apple can only benefit from Tuesday’s decision.
“I see this as a major boon for investors, rather than a bust,” independent Apple analyst Andy Zaky said in an e-mail to Cult of Mac.
Only traders wishing to manipulate Apple stock through rumors and speculation could be hurt, according to Zaky.
Since 2007, Macworld events have seen “massive selling in Apple’s stock,” he said. In fact, every Apple media event has resulted in a drop in stock prices.
Macworld 2008 was followed by a nearly 11 percent drop in Apple stock price. Apple shares fell 10 percent leading up to and following the iPhone 3G announcement. The big notebook announcement in October meant an 11 percent stock drop, said Zaky.
When the original iPhone was released, Apple’s stock rose and then all gains were lost the following week, according to the analyst.
“Apple would be better off eliminating every media event,” the analyst told Cult of Mac. Instead, the Cupertino, Calif. company could issue simple product announcements.
Along with putting an end to so-called ’sell the rumor, sell the news’ stock action, the departure by Jobs from Macworld likely means the “final hurrah” for public speculation about the CEO’s health status, Zaky believes.
Posted by Ed Sutherland in News | Comment on this article
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Very interesting remark that I have not thought about. From my standpoint, MacWorld has outgrown its original intent and has become too distractive to Apple business. Nowadays, we can have a better grasp of what the company is doing by visiting its stores and its website. Apple has shown that it can introduce new products using its special event forum which is less resources intensive and much more focused than MW. Finally, special events allow Apple to set its own schedule rather than be forced to comply with MacWorld time constrain. In the end, it is going to be a good move for Apple, hence for the investors.
Viviana Wong, on December 17th, 2008 at 10:11 am
I posted this when I first saw the news and after reading all the ridiculous hype my thoughts still stand..
Good for Apple. The problem with Macworld is the media. It is hyped way too much and so expectations to release the next iPhone-like revolution get’s totally out of hand.
This move puts more power into the hands of Apple and takes it away from the uninformed guessers and scribblers. The one fault of the net? It makes everyone try to announce the scoop before it’s even happened…
Congratulations Apple on a ballsy -and totally correct- move.
Jon T, on December 18th, 2008 at 1:40 am