Wall Street Sends Harsh Message to Apple: AAPL Rejected

It’s clear that investing in stocks like Apple, which has seen remarkable growth over the last year, is more about betting on future potential rather than past achievements. Such high-flying stocks are often susceptible to negative forecasts, unlike their slower-growing counterparts. Yet, Apple has just reported another record-breaking quarter.

With unprecedented sales and revenue, the company sold over 2.3 million Macs and nearly as many iPhones, plus a staggering twenty-two million iPods. The revenue for the December quarter alone rose by nearly $2.5 billion year over year, reaching $9.6 billion—a figure that would have been an impressive annual total in Apple’s not-so-distant past. Apple even surpassed its own internal forecasts by $0.34 per share.

This financial achievement can only be described as exceptionally impressive—unless you’re Doug Krizner of Marketplace Morning Report, who today called the results “less than stellar.” I’m glad they made him stop ending his broadcasts with “Make it a good day,” because his tone was enough to make you want to stay in bed and stash your cash under the mattress.

Despite these stellar results, why did after-hours traders react as if it were the end of the world? “Go crawl in a hole and die, you hippie freaks?” seems to be the sentiment. Apple’s CFO has projected earnings per share for the next quarter to be around a dollar, which is below what analysts expected, possibly indicating some economic downturn effects on the business. However, with increasing iPhone revenue (considering it takes two years to fully realize iPhone profits) and new income streams from iTunes rentals and a thriving retail operation, it feels like we’ve moved from excessive enthusiasm to an outright assault.

If it’s tranquility I was after, perhaps investing in Dell would have been the wiser choice.

Disclaimer: I own AAPL shares, purchased at a split-adjusted $13, and I’m not planning on selling.

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Michael

Mark is a dedicated writer for TUAW, bringing insightful and engaging content to Apple enthusiasts around the world. With a deep understanding of Apple products like the iPhone, iPad, and MacBook, Mark’s articles offer readers valuable tips, news, and reviews. His expertise in the tech industry, combined with a knack for clear and concise writing, makes him a trusted voice in the Apple community. When he’s not writing, Mark enjoys exploring the latest apps and software updates, always staying ahead of the curve.