Loading ...Dow and S&P were only flattish through midday, the Nasdaq gained 0.5% thanks to Apple’s glorious success at the game — and I really do mean “game” — of beat-the-number.
Apple’s Bruises Heal Fast
The quarter was horrible for Apple, with declining revenue for the first time in 13 years and net income down about 27%. In addition, average sale prices fell from $670 or so to $500 and change for the vaunted iPhones. But none of that mattered because CEO Tim Cook said the future was so bright he needed a new pair of shades. Thus, the stock exploded for 7%. Obviously, I was wrong in my analysis that there would be enough margin pressure to rattle folks’ cages, but in hindsight the real mistake was thinking that any kind of sanity could break out given the environment we are currently in, which of course is why I chose to use puts instead of shorting the stock.