Market Update on Apple
1/23/2013 (7:02 PM) – Apple stock (AAPL) fell -10.29% to $461 after trading hours today. The company reported net income (revenue – expenses and tax) that beat stock analysts estimates, but it missed on revenue consensus.
Source: CNBC Real Time Quote
Analysts were expecting 1st quarter (fiscal year) revenue of $54.7 billion, but AAPL reported slightly lower revenue of $54.5 billion. It had net income of $13.07 billion, which was higher than the $13.06 billion in net income reported for the same period one year ago.
As reported on CNBC, Apple also announced that it had sold 47.8 million iPhones during the 1st quarter. Which was higher than the 37 million phones shipped one year ago. In addition, it sold 22.9 million iPads, which was also higher than the 15.4 million iPads sold one year ago. However, these figures were below analysts expectations.
The slightly missed revenue numbers confirmed Wall Street’s fears of a slowing demand for the iPhone. iPhone sales account for 50% of Apple’s total combined (iPhone, iPad, iPod, Mac, etc.) sales.
A problem that has been plaguing Apple’s stock is the extremely high “irrational” expectations that investors had placed on the stock in the 2011 and 2012 period.
Here at MarketConsensus, we believe the stock has almost reached a bottom and investors should consider the decline in this stock as a buying versus a selling opportunity. Tomorrow, we expect there to be real carnage on AAPL and it is possible that in the near future the stock will bounce along a bottom trough. But from a long term perspective, we consider this a great entry opportunity compared to the $700 price target the stock was trading at just five months ago.