AAPL
Shares in AAPL plummeted more than 10% in after hours trading, following the release of Apple's third quarter financial results. As of this writing, shares traded at US$147.56 per share, down $18.73 (-11.26%), with investors seemingly worried about Apple's September quarter guidance. The stock had posted a small gain in the last hour of the regular trading session.
Apple announced a record June quarter, with revenue of $7.45 billion and profits on $1.07 billion. The company grew iPod sales, and saw a record quarter for Macintosh unit sales. While those results beat analyst consensus of $1.07 per share in earnings, with revenue of $7.36 billion, Apple disappointed with its 4th quarter guidance.
Apple CFO Peter Oppenheimer announced guidance of $7.8 billion in revenue, with earnings of $1 per share. Wall Street had been looking for $8.3 billion in revenue with earnings of $1.23 per share. The after hours market took that guidance as a disappointment, sending the shares lower.
The after hours market only affects those shares actually traded during the after hours session, but it can be an indication of which direction the market will head once the next regular trading session opens. News from events that take place after the markets close are what tend to have the biggest effect on any stock's after hours activity.
Historically both after hours gains and losses have tended to be more extreme than regular trading activity during that next session. The Mac Observer will be watching the markets Tuesday morning to report on Apple's activity.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
Original Source : http://www.macobserver.com/stockwatch/2008/07/21.4.shtml
Custom Search
