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Minutes after the iPhone delay blog was published, Apple's stock price took an immediate tumble. (Source: Google)
Apple iPhone and Mac OS Leopard still on track for on-time arrival

Late Wednesday morning, widely read consumer electronics blog Engadget posted what it believed to be trustworthy information stating that the iPhone and Mac OS Leopard would both be delayed several months. This news, however, was quickly proven to be false, as Apple quickly dispatched a memo reconfirming that the iPhone and Mac OS Leopard are on track for a June and October release, respectively.

Despite the quick retraction, the news already caused a ripple effect, apparently shaking the confidence of investors. Immediately following the original news post, shares of Apple Inc. (AAPL) dipped 2.7 percent to $103.42 as volume hit levels not seen since the announcement of the iPhone.

Regardless of the continued and consistent strong performance of Apple stock, Wednesday’s unconfirmed whisper of product delays was enough to push investors to quickly dump lots of AAPL shares, causing the stock price to plunge.

Conversely, as soon as word spread again that the news was false, investors who realized the mistake—or those who wished to buy the stock at an artificially low point—quickly snatched up shares again, raising the stock back up to nearly where it was prior to the report. Shares of Apple closed at $107.34, down from its $108.48 opening.

If nothing else, the Apple news story and its quick effect on AAPL stock is a demonstration on the power of the media and the speed at which information today travels. Those looking to cash in on what could be a successful foray into the mobile phone industry might suddenly find themselves without an immediate need for AAPL stock, should the iPhone be delayed.

As astutely pointed out by Georges Yared, CIO of Yared Investment Research, in a BloggingStocks entry, “If there were a delay in the iPhone's release date, the "expectations" of earnings beats and earnings raises would certainly get pushed out a quarter or two, so the urgency to be involved with the stock would lessen ... The game of ‘what if’ can be nerve-wracking as portfolio managers try to be timely in their purchases. The one thing I can firmly say is that Apple is a winning investment over the next 3-5 years as it has been the past three years. The whole beautiful product cycle is still early.”



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hahahah
By yacoub on 5/17/2007 8:28:01 AM , Rating: 6
This is pretty much exactly what Jim Cramer was describing here:

http://www.youtube.com/watch?v=ugldfTwYugc




RE: hahahah
By KristopherKubicki (blog) on 5/17/2007 9:00:19 AM , Rating: 2
Incredible interview. That's an awesome link.


RE: hahahah
By zornundo on 5/17/2007 9:08:08 AM , Rating: 1
That little bit of dip probably made a lot of money for a few people. Opposite the pump and dump, eh? What do we call this?


RE: hahahah
By A5 on 5/17/2007 9:25:54 AM , Rating: 3
Dump and pump? :-p


RE: hahahah
By James Holden on 5/17/2007 9:57:20 AM , Rating: 2
Hack n Slash :)


RE: hahahah
By marvdmartian on 5/17/2007 11:13:24 AM , Rating: 2
Unless they're really lucky, the owners of that blog might call it LAWSUIT by the time Apple gets done with them! ;)


RE: hahahah
By Frosen on 5/17/2007 8:02:48 PM , Rating: 2
there is no basis for that commment. You can't sue someone unless they break a law, hence the "law" part of lawsuit. There is absolutely no law prohibiting a blog from posting a rumor like that. Unless the first ammendment has been revoked, Apple can't sue them. Well... Apple could sue, they just can't win.


Good job Marcus
By ted61 on 5/17/2007 10:22:27 AM , Rating: 2
This is probably the best article I have seen from Marcus. Most of the article was not written in the usual Marcus run-on style (I don't want to know who's style it is), but I liked it. Clear, short and to the point with no slang thrown in there.

Keep up the good work Marcus!




RE: Good job Marcus
By johnsonx on 5/17/2007 11:42:58 AM , Rating: 1
Hey, Marcus, is your face stinging from that 'compliment'?

Good grief, that was about like telling a woman she's not as ugly as usual today!


RE: Good job Marcus
By TomZ on 5/17/07, Rating: 0
RE: Good job Marcus
By exanimas on 5/17/2007 1:14:29 PM , Rating: 2
I find that a lot of Marcus' blogs have some of the more interesting topics (at least to me) regardless of how they are written.

Besides that, what's wrong with slang, yo?


RE: Good job Marcus
By ted61 on 5/17/2007 5:43:06 PM , Rating: 2
Sorry Marcus, I really do like the article.


By TomZ on 5/17/2007 9:07:26 AM , Rating: 4
If someone's mortgage is somehow affected by a mid-day selloff of a particular stock, then they might want to re-consider their choice of mortgage type and provider!


By sc3252 on 5/17/2007 5:34:33 PM , Rating: 2
Everyone should know by now that the market goes up and down by rumors or from random blogs like this. If you are putting lots of money into one stock like apple you are asking to lose it. Don't be stupid and assume that the market isn't driven by emotions, because thats all the market is, peoples emotions projected onto a stocks.


*shrugs*
By SiliconAddict on 5/17/07, Rating: -1
RE: *shrugs*
By KristopherKubicki (blog) on 5/17/2007 10:23:54 AM , Rating: 3
Actually.....

http://dailytech.com/article.aspx?newsid=7162

That story moved the MS stock a tad, pushed the Yahoo stock up 20%.


RE: *shrugs*
By plinden on 5/17/2007 10:24:59 AM , Rating: 2
RE: *shrugs*
By yacoub on 5/17/2007 10:30:54 AM , Rating: 2
But those are big lumbering giants. What about versus another company the average investor sees as tech savvy like Google?

http://finance.yahoo.com/q/bc?t=5y&s=AAPL&l=on&z=m...


RE: *shrugs*
By plinden on 5/17/2007 11:54:20 AM , Rating: 2
My post was in reply to:
quote:
Do you ever see rumors hit Dell or MS that hard?


Hence the inclusion of Dell and Msft only.

If you look at historical Google data, you see large daily swings. For instance, in early March it dropped $15, or about 3%. Yesterday Google rose $13 (on their universal search news?).

So stocks like Apple and Google are volatile with large daily swings, often based on news or rumors.


RE: *shrugs*
By Lonyo on 5/17/2007 11:58:30 AM , Rating: 2
Which just shows how overvalued Google and Apple are :P


RE: *shrugs*
By dagamer34 on 5/17/2007 1:09:43 PM , Rating: 2
Not really overvalued, but just how dependent they are on the satisfaction of the everyday consumer. You see, Microsoft still makes money while pissing everyone off with Vista and there's no way Apple would be able to do something as silly as that.

Anyway, the best tip you'll ever hear about the stock market. Bad news is good news if you're money's not already in the pot. Throw it in then!


RE: *shrugs*
By Pirks on 5/18/07, Rating: 0
RE: *shrugs*
By kelmon on 5/17/2007 5:02:34 PM , Rating: 2
It's simple investment theory. Money today is worth more than money tomorrow. A delay in a product expected to generate revenue means that a company is worth less because it will have less money in a specified timeframe, typically a financial year, even though the product may still make exactly the same revenue as was expected in total. You'll see exactly the same thing from any company but the degree of the reduction in the value of the company will depend upon how valuable the expected product was expected to be.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs











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