[ad_1]
This article was first published in Data Sheet, Fortune's daily newsletter on major technical news. To have it delivered daily to your inbox, register here.
I sympathize with the average investor who does not know the strange behaviors of the day market like Wednesday for Apple.
Once again, the company, which has run into billions of dollars, announced Tuesday night that common sense would suggest that it was, according to Wall Street jargon, a report on profits. IPhone sales fell 17%, revenues fell 5% and the company said things would have been worse if prices had fallen sharply, especially in China. (The smaller but growing service business of Apple has shone.)
The market response? Apple's shares (aapl) jumped nearly 5% in heavier-than-average deals.
The reason, as is often the case in the game of stock trading, was related to expectations. Investors who are paid to predict such things think that Apple's results would be worse. They were also encouraged by Apple's expected earnings range for the next quarter.
Not all badysts were impressed. Bernstein's Toni Sacconaghi worries that the slight decline in expected iPhone business turnover "essentially involves the most sequential consequences [third-quarter] The business figure of the iPhone is down. He is also worried that, although Apple's valuation has climbed back to the trillion dollar mark, the company has not solved "the fundamental question of the company." 39, lengthening the replacement cycles of an iPhone ". days, consumers keep their iPhone longer than before.
Investors will not tolerate this for long.
Source link
