Apple Breaks Records & Wall St. Reacts
by Da'Von B.
So Apple posted record profits (in the history of the U.S. beating ExxonMobil) of $13.1 billion, record iPhone (47.8 million) and iPad (22.9 million) sales, revenues of $54.5 billion…these earnings being the largest corporate earnings year in history, leading Wall Street and analysts to react this way;
Dropping the stock 10%…once again a record in earnings in the history of the company and history of the country, and the stock drops due to analyst concern? This is a sign Apple is in trouble? Other companies that are reporting losses for the fifth quarter in a row improve the stock price? Mashable put together an article detailing how the numbers are disappointing (not worth linking to) and provided no analysis of why these numbers are such a “disappointment” or such a let-down (it’s safe to say Mashable is practicing the art of copy/paste). It’s also safe to say you won’t find a single website providing any analysis as to how reporting record earnings numbers could possibly be a let-down. And so the craziness ensues as Tim Cook does his best to quell investor concern by simply telling them to smarten up. For a clearer understanding of how this has been broken down just head here.
And finally what may have been the best exchange during the earnings Q&A:
5:58:19 PM EST – Question: Talk About how you predict iPhone demand.
5:58:27 PM EST – Tim Cook: No