5 Reasons Apple’s Stock Has Fallen


#AppleStock #Apple5 Reasons Apple’s Stock Has Fallen : Apple’s shares have fallen (9.4)% in the past three weeks from $118.25 to $107.11 since it announced its September quarter results and gave December quarter guidance. This compares to the NASDAQ being essentially flat in the same timeframe. There are five main reasons for the weakness in the shares. (Note that I own Apple shares).

Stock was strong going into earnings announcement

Apple’s shares had moved from $107.70 the day that the iPhone 7 was announced to a recent high of $118.25 the day of the earnings announcement, a 9.8% increase.

They had also seen a strong 22.3% increase from July 26, the day the company announced its June quarter results, to October 25, the day it released its September quarter results. In both of these timeframes Apple’s shares had significantly outperformed the NASDAQ.

September quarter iPhone sales a bit disappointing

Apple sold 45.5 million iPhones in the September quarter, which was down 2% from the 48 million sold a year before. When adjusting for inventory changes iPhone sales declined from 46.1 to 43 million or down 7% year over year.

Apple did call out that iPhone 7 demand has significantly outplaced supply but keep in mind that the iPhone 7 had 9 days of sales in the September quarter and a full quarter of the iPhone SE vs. a year ago the iPhone 6s only had two selling days before the end of the quarter and there was no SE equivalent. Overall I believe iPhone sales were a bit worse than expected.

Source: Apple

Source: Apple