Apple Stock News: Apple Shares Drop Amongst Short Term Speculation But Still Long Term Play

Apple Stock News

For the latest Apple Stock News, AAPL closed at $113.58 on Monday, September 19th, with a loss 1.17%, or $1.13 from Apple’s previous closing of $114.92.

Overall the AAPL shares been up at almost 5% since the release of the iPhone 7 and up overall over 10% since September 9th, 2016. The surge in Apple shares was mainly due to pre-sale demand exceeding expectations and consumers rushing in to receive the iPhone and new highly anticipated upgrades, which can found in this previous article. Additional positive news for Apple Inc. was one of its top competitors, Samsung had to issue recalls after reports found their new Galaxy Note 7 was bursting into flames (yes, catching on fire). Being mainly due to Samsung executives attempting to capitalize on Apple’s recent weakness in sales and attempting over accelerate releases of new phone models. The push for tighter deadlines had clearly caused them to cut corners, and their plan to take advantage of the situation took an 180-degree turn, backfiring.

Apple Stock News

These catalysts had caused investors to become more bullish as they had recent negative outlooks for the firm since it had been underperforming both fundamentally well over the past two-quarters and on a technical analysis, with the share price not increasing before the iPhone release as it had been historical. Demand and volume increase for the iPhone 7 was helped by aggressive promotions, coming mainly from telecom giants such as AT&T, Verizon, Sprint, and T-Mobile, all have been offering trade-in promo plans for the new iPhone 7. This had a direct impact on iPhone 7 pre-orders, being up 4x compared to iPhone 6 pre-orders.

However, yesterday, AAPL began to decline from its recent short-lived hype. This can be mainly attributed to recent remarks by JP Morgan analyst, Rod Hall releasing a statement that the recent surge in share price is “premature”, as a result of investor hype in high than expected pre-order demand for the iPhone. Although Wall Street is still bullish on Apple Inc in the long term, however, Hall like others is increasingly more concerned with the International market for how iPhone sales will affect quarterly earnings, as average prices have been shifting in a downward trend. Additionally, rumors have been circulating that the new iPhone 7 has been experiencing battery and ‘home-button’ issues which can be causing renewed fears that a situation similar to Samsung may arise.

apple stock news

Uncertainty still exists amongst Apple investors, in whether the Tim Cook’s bets will pay off in the future. Similar to Steve Jobs, who made bets on touch screen technology, the new iPhone 7 has no headphone jack and has a virtual home button now. Apple is betting that bluetooth technology, along with virtual (instead of physical) buttons will continue to become the popular trends. Many believe that Apple users will adapt to these changes, but concerns investors the most is whether these changes/upgrades can translate into global sales growth for the iPhone (Apple’s largest source of revenue).

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Comments are closed.