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Apple shares fall in after hours trading

Apple today reported revenue of $28.27B for the fourth quarter and $6.62B in net profit ($7.05 per diluted share). These numbers compare quite favorably to $20.34B and $4.31B ($4.64 per diluted share) for the same quarter last year.
 
Gross margins for Apple during Q4 were 40.3 percent.
 
During the quarter, Apple sold 17.07 million iPhones (21 percent growth year-over-year), 11.12 million iPads (166 percent growth), 4.89 million Mac computers (26 percent growth), and 6.62 million iPods (27 percent decline).

 
“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”
 
Speaking of the iPhone 4S, Apple announced yesterday that it sold over four million of the smartphones during its first weekend of availability -- this was over twice the number for the iPhone 4's initial rollout in 2010.
 
Despite the good news coming out Cupertino today, investors weren't too terribly impressed. Analysts were expecting revenue of $29.69B and earnings per share of $7.39. They also expected quarterly iPhones sales to be in the 18 million to 20 million range.

Apple shares are down over $26 in after hours trading.

Sources: Apple, CNBC



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RE: Problem with stock market
By TSS on 10/19/2011 12:09:45 PM , Rating: 2
Blame skynet for taking over the world.

For once i'm not kidding. The name is High Frquency Trading though, rather then skynet. From wikipedia:
quote:
In high-frequency trading, programs analyze market data to capture trading opportunities that may open up for only a fraction of a second to several hours

quote:
By 2010 high-frequency trading accounted for over 70% of equity trades taking place in the US and was rapidly growing in popularity in Europe and Asia


So why did shares go down? Because the machines where programmed with the analysts expectations (since you can't program them with data from the future). You don't live up to them -> computer says no and sells. You could program the machines with lower expectations, and they'd buy....

But since the "market" is group behaviour and the status quo is "high expectations", everybody programs their machines that way because everybody else is doing it and theres no sense holding on to a falling stock, atleast for high frequency trading. It's really a logical conclusion, since the share holders want profit -> profit = more money so companies strive to gain more profit so analysts expect more profit thus the machines sell if that profit doesn't materialize.


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