Samsung To Miss Wall Street Expectations.
Will Samsung get the Apple Treatment?
The blogs are buzzing with reports that Samsung is expected to miss ‘The Street’s’ expectation when the company reports its quarterly results. How will the pundits report the news? Hard to say exactly.
Remember when Apple reported record-breaking revenue and profits for its Holiday Quarter? The sell off in AAPL accelerated. Apple hit its all time high of $702 in mid September last year. Revenue and profits were growing at amazing rates. How did Wall Street react? “What have you done for me lately Apple?”
Apple was firing on all cylinders, breaking records and accumulating a huge pile of cash and cash equivalents. And the sell off continued. The early selling was attributed to uncertainty as to what Apple’s pans were for all that cash.
The company sold 5 million iPhone 5 units when it launched in its first three days. The market yawned and called those results “Disappointing.” Samsung SHIPS 10 million Galaxy IV units and the pundits have an orgasmic reaction. Same reporter. It never makes any sense.
September 18, 2012 AAPL hit its All-Time high of $702.10. The share price began to tick down the very next trading day. The slide was slow at first. But by October 24, 2012 Apple’s share price had dropped nearly $100. This despite the company reporting record revenue and earnings. Sales of Macs, iPhones and iPads were breaking sales records too.
All through the Holiday Quarter, the word was out. Apple was on its way to blow out numbers. And still the stock continued to sell off. What was behind this bearish trend? Apparently nothing more than Hedge Fund manipulation. When Apple reported the results of its 1st Fiscal Quarter on January 23, 2013 the stock was melting down.Apple closed at $450.50.
Suddenly Tim Cook had to go. The pundits were sure Cook – and Cook alone, was Apple’s problem. Forget that he was steering Apple to records quarter after quarter. And of course, he wasn’t Steve Jobs.
I will be a very interested observer regarding how the pundit class covers the Samsung numbers. Apple saw its stock price plunge $251 a share in ninety days. By the end of Apple’s second quarter conference call, the stock had been sold down to $390.53! And that was after Apple announced an increase in its quarterly dividend AND a $60 Billion Dollar increase in its stock buy back plan. Why a $311.57 drop? Beats me.