AAPL hammered yesterday on iPhone production rumors
Tuesday was a rough day for Apple investors, as shares dropped precipitously from post-earnings-report highs of $148 a share down into the low $130s. Most of the credit/blame for the selloff is being attributed to a rumor floated among traders and on a posting at TheStreet.com that Apple was cutting back iPhone production by 50% off the company's original plans. Most of the potential sources later disavowed the information. Considering that there has never been an official production target other than the "10 million phones by 2008" number (note also that a production cut was not discussed during the earnings call), longtime Apple stock watchers on the Mac Observer forums characterized the bear run on AAPL as a "deliberate hit," executed by unscrupulous persons who have positioned themselves to take advantage of the drop in value to shore up their holdings.
Remember, AAPL investors, it's a marathon, not a sprint.
via Apple 2.0 and BloggingStocks
Disclaimer: I hold a position in AAPL.
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Reader Comments (Page 1 of 1)
andy said 12:06PM on 8-01-2007
stoopid, if anything surely they would be ramping up production for european launch and xmas
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Mitch said 12:17PM on 8-01-2007
Long term (quarter to quarter) - I am very bullish on AAPL.
Short term (day to day) - I don't have a clue.
AAPL has made me lots of $$$$ and I believe that Apple market share, revenue & earnings will continue to rise so I am staying on for the ride.
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mentalsticks said 12:19PM on 8-01-2007
What this could also point to is an earlier intorduction of the iPhone 2G
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Alex said 12:22PM on 8-01-2007
While I love to see apple succeed, I don't mind a short term drop that makes it more affordable for me to buy a larger chunk of the company :)
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Jeff said 1:03PM on 8-01-2007
Check out CNBC's investigation of the role thestreet.com (Scott Moritz) had in exaggerating these "rumors" and "notes" :
http://www.cnbc.com/id/20058194/
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cameron said 1:11PM on 8-01-2007
What's with the picture of the bear?
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Charles Suggs said 1:16PM on 8-01-2007
Bear market - Bull market.
Isn't it 10 million by the end of 2008?
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Aron Trimble said 1:34PM on 8-01-2007
Yes, definitely unscrupulous... Somebody badly wanted AAPL to go down so they could buy in before the rumors were squashed and it went back up. I'm sorry the iPhone made AAPL rise so highly, but it's not my fault the hype was true and you lost out.
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Paul said 1:56PM on 8-01-2007
A "deliberate hit"??
Isn't that the kind of thing the SEC should be looking into?? Last time I checked, deliberately manipulating the market with false information was illegal.
Then again, with guys like Jim "It's a fun game"[1] Cramer running the show, who knows?
I think I'm gonna start keeping my money under the mattress.
[1] http://legalpad.blogs.fortune.com/tag/stock-manipulation/
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Aron Trimble said 1:53PM on 8-01-2007
Yes, definitely unscrupulous... Somebody badly wanted AAPL to go down so they could buy in before the rumors were squashed and it went back up. I'm sorry the iPhone made AAPL rise so highly, but it's not my fault the hype was true and you lost out.
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Nod said 2:06PM on 8-01-2007
Yes, the SEC should definitely look into this.
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FrankMcBilboWinker said 2:41PM on 8-01-2007
A Bear! Is this a Threat Down?
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jim said 3:34PM on 8-01-2007
Analysts are never in it to help the everyday investor. They have ties elsewhere from which they get their cues (imo).
Because of that......do the opposite..... when sell signals are given (like now)....you buy..... When nothing but good is said about the stock, take a bit off the table.
It's all a big game and profit is the goal.
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Todd said 4:40PM on 8-01-2007
The bear pictures is hilarious. And yes, the iPhone is a marathon - wtf is up with wall street on this, or is it just that so much attention is on them right now?
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FrankMcBilboWinker said 6:45PM on 8-01-2007
http://www.threatdowngenerator.com/generated/67087ba96165d2eee7f5d4daffce3eb6.jpg
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