Filed under: Analysis / Opinion, Video, Apple Financial, iTunes, Apple
AAPL, Blockbuster and Netflix down following Macworld Keynote
Apple, however, isn't doing that well either after today's announcement. On the day, they've dropped almost $11 as of this writing. But while this Keynote may not quite have met expectations (lots of people were expecting Cinema upgrades, or something a little less traditional than the MacBook Air), this very likely isn't an actual downturn in the ol' Apple hype -- anyone can see that iTunes movie rentals will very likely make them a lot of money. Rather, it's probably* the result of Keynote investors selling off the stock they picked up before the event. In short, it'll take a lot more than an afternoon to see what effect today's announcements really have on stock prices.
*All of this commentary and analysis is given by someone who has little to no experience in stock trading, and should not be taken seriously by anyone.
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Reader Comments (Page 1 of 1)
james said 4:07PM on 1-15-2008
Are movie rentals working for anyone yet?
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Dan said 4:12PM on 1-15-2008
No, the rentals aren't effective until February. Also, regarding this post about the stock today following the Keynote:
The entire market fell today quite a bit, which was reflected through AAPL and Blockbuster as well as Netflix. (For the record Micrsoft, Amazon, eBay, Google and Starbucks all saw major losses today) It is definitely possible that investors were not entirely happy with the keynote and therefore the stock did fall. The sharp drop currently of over 10 points though, is partially connected to the overall market being down today. Also, keep in mind that this almost ALWAYS happens. Investors are unsure about the products at first glance, but I am sure we will see the stock rise in the next few days.
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Robert said 5:50PM on 1-15-2008
During the keynote he said that it started today, but 1000 by end of Feb.
Having said that I can't find any notes of it, so maybe it was a slipup.
nyc said 4:13PM on 1-15-2008
Wouldn't that have more to do with the stock market tanking today, rather than just Steve's keynote?
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Jackie said 4:17PM on 1-15-2008
Well no one's going to be watching those rentals on an Apple TV. It can't even play video playlists. The iPod is a better Apple TV than the Apple TV.
Okay, okay, so no one really puts feature length films in a playlist -- but what about music videos? The iPod does video playlists, so why can't the Apple TV? Because it's junk, that's why!
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required said 4:38PM on 1-15-2008
Apple is not pioneering much with their AppleTV. I read on engadget that Netflix was doing a set-top box and once they do you know blockbuster will as well. By the way, Sony has their PS3/PSP (LocationFree TV, TiVo-To-Go, PS Store, etc.), and Microsoft the XBox360.
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Thai said 4:56PM on 1-15-2008
Its probably worth noting that the entire market is down.
Also, the info presented at the keynote so far wasnt really ground-breaking. People expected the ultra portable, firmware, and rentals. Wireless backup and revised apple tv dont have that new wow factor. The market rewards good surprises and is less kind to what is expected.
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Kurt said 4:59PM on 1-15-2008
Interesting note: just got an email from Netflix that said they're now offering UNLIMITED on-demand viewing for subscribers (previously it was 1 hour per dollar-month). Unfortunately, still no support for Macs.
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Joe Poutine said 5:07PM on 1-15-2008
Hello! My name is Joe Poutine from Canada and I'm very disappointed aboot the lack of movie rentals in my igloo.
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Mark Fearing said 5:36PM on 1-15-2008
The Air is a great Apple product. Future looking, and fully designed with a user in mind. When they do this type of hardware development it's hard to imagine another company doing anything better. Having worked on one or two hardware pieces in development it amazes me that Apple stays on target. It speaks to their culture and system. On the project I worked on we ended up with notes from everyone in the universe, and demands being made that didn't improve anything for anyone, yet project director had the idea and it went forward. By the way, it's 2 years later and the product tI worked on, still not out.
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bob said 5:54PM on 1-15-2008
steve jobs had little to do with the stocks falling it was because citi reported a $10 billion loss.
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John Vilsack said 5:44PM on 1-15-2008
Post hoc ergo propter hoc.
The article claims that Netflix and Blockbuster are down because the author believes that investors would rather visit iTunes than go to the store or wait for a movie.
Of course, this fallacy would hold up had Apple stock shot up after the fact, but the author claims the stock must be down because expectations were not met by Apple.
As another comment stated, the Market as a whole was down across the board. It seems like all the stocks in question took a hit regardless on what the author thinks.
Stick to reporting the facts, not your insights based on your feelings.
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mikull said 6:56AM on 1-16-2008
I think movie rentals is a cool feature, but I keep wondering: wouldn't people have preferred a subscription service? My wife and I were thinking about Netflix, and have heard the rumors about set-top LG is making. iTunes may already have a larger audience, but shouldn't Netflix still be the leader?
I've blogged the LG thing btw, if anyone is interested:
http://www.mikull.com/netflix-developing-set-top-box/
And my rant on rentals (pre-Macworld):
http://www.mikull.com/apple-brings-rentals-to-itunes/
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mason said 8:15PM on 1-16-2008
Why does TUAW make stock commentary? Not only is the market down today, it has been down overall for several weeks, with much discussion of recession, and the NASDAQ (technology index). It was down again today partially due to Intel posting losses.
If anything, this is the time to start buying AAPL. And probably other tech as well. Buy low, sell high, people, especially if you are in the know about the high quality of a company. And we all know AAPL keeps the love coming and the products flying off the shelves.
Again, this is a buying opportunity, not a vast market conspiracy against the Stevenote...
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Robert said 10:20AM on 1-17-2008
Eh, I am fine with TUAW making stock commentary, so much so that I'll post my 2 cents. I bet the stocks dropped because they announced an impossibly expensive product in the midst of all the fears and rumors of recession. Who is going to buy this thing at that price in this economy? Well, there are definitely those who will buy it, but from my perspective, expensive product + not so hot economy / concern over consumer spending = drop in AAPL stocks. Just a thought.
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