Apple (AAPL) stock is a perfect example of how psychology, fear and superstition enter into stock prices as much as do measures of valuation. Any predictions for this afternoon’s earnings? In general, here’s a field where regardless of what happens, “experts” never have to say they were wrong–especially about Tech. So, certainly we don’t. Thus, a wild guess–AAPL (currently down 300 points over its high) goes up with earnings, but not massively (~5-10pts). Still, there’s such a fear of its being “RIMMED” (i.e., dramatically losing its status as top tech, as did Research in Motion), that it may be beaten down some more.
(To be placed in rejected posts blog)
Quite a lot of negative talk on stock forums and in articles today to push apple down, down, down with the presumption it will rise up in the future. I actually see no one predicting impressive earnings.
The only way to justify the share price that was, is growth in markets. Investors seem to have realised that there aren’t that many ways for Apple to grow it’s markets, in ways that sell products with a high profit margin.
The new 3% dividend is nothing to sneeze at, especially these days, and then there’s the $60 billion stock buyback plan. Hopefully they’ve hired all the wiz kids likely to invent the next new big thing. I remember when Jobs announced the iPad at earnings not so long ago,and the analysts were shaking their heads saying, no one wants to buy a tablet, companies have tried tablets already…Now I see them in cockpits.