On January 2, after the NASDAQ closed, Tim Cook wrote a letter to investors acknowledging below-expected iPhones sales and adjusting Apple’s revenue expectations for its first fiscal quarter of 2019.
Obviously, the bad news was not met with champagne on Wall Street. The following day (3/1), the $ AAPL plunged 9.96% and closed at $ 142.19 – the lowest level since July 2017.
Now, three weeks later (and even before the actual financial results conference, which will take place next Tuesday), $ AAPL has returned to where it was before the publication of its CEO’s letter. It closed on 2/1 for $ 157.92; today, after an increase of 3.31%, it is now quoted at $ 157.76.
Despite the beautiful recovery, Apple remains the fourth most valuable publicly traded company in the world. In today’s values:
- Microsoft: US $ 822.8 billion
- Amazon: US $ 816.7 billion
- Alphabet: $ 761.4 billion
- Apple: US $ 746.2 billion
In the end, it looks like the anticipation of bad results was good for Apple. Analysts will have no negative surprises next week and the $ AAPL has no reason to fall again.
Another factor that may have helped in this perception in relation to Apple’s results was that other technology giants also reported lower than expected financial results for the period, including Samsung, LG and Intel.