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Spoiling The Party (7/15/99)
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Yes, folks, it happened again; Apple posted quarterly financial results reflecting a profit quite a bit higher than the analysts were expecting, at which point the company's stock started plummeting like a stone. Well, okay, losing about 2 3/4 points off a near-six-year-high of $56 or so probably doesn't qualify as a "plummet," per se... more like a "wilting." But regardless, the curse continues; Apple's stock always seems to go down instead of up every single time they report better-than-expected profits. They beat the Street, and the Streets beats back.
This time, though, we think we at least detect a rational reason behind the stock's decline, and it's not just profit-taking. According to a CBS MarketWatch report, Wall Street managed to look past the higher profits, the continued year-over-year growth, the $3 billion in cash reserves, the increased gross margins, and everything else positive and instead focused on the fact that, while Apple's revenues went up, they didn't go up as far as people had hoped: "Sales hit $1.56 billion, up from $1.4 billion a year before. However, that was about $40 million lower than most analysts expected." Hence, the even-stronger-than-usual post-profit stock price deflation. Man, those analysts are picky.
At broadcast time, AAPL is back up a bit, probably due in no small part to BancBoston Robertson Stephens' reiteration that, in their opinion, Apple is still a "buy." In fact, they even upped their estimates on Apple once the quarterly results were posted. So not all of the analysts are spoiling the party. What we're really anxious to see is what the analysts will say following whatever big news Apple sends our way during next week's Expo...
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SceneLink (1665)
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And Now For A Word From Our Sponsors |
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 | | The above scene was taken from the 7/15/99 episode: July 15, 1999: If you can't make it to next week's keynote address, tune in via satellite or QuickTime 4 instead. Meanwhile, Apple reportedly ponders the possibility of opening its own series of retail stores across the nation, even as its stock drops once again following Street-beating end-of-quarter results...
Other scenes from that episode: 1663: All Eyes Are Watching (7/15/99) There are only a few days left until Macworld Expo, and we're mentally gearing up for the whole experience. The sights! The sounds! And, especially since the relocation to New York, the smells! (Last year, just walking the six blocks from our hotel to the Javits Center was an olfactory roller coaster ride of the highest caliber.)... 1664: Um... Apple Country? (7/15/99) First, Apple severed all ties with its existing national resellers. Then they worked out a deal with megachain CompUSA whereby Apple products would be attractively displayed and competently sold in special "stores within stores."...
Or view the entire episode as originally broadcast... | |  |
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