Apple reported record Q3 earnings numbers, but the AAPL stock dropped 6.85% in after hour trading yesterday. The stock trades at 5% down at market open and appears in heavy trading.
The Apple Stock opened at a 5% drop this morning after it fell in after hour trading by 7%. AAPL right now trades at $124. Yesterday Apple lost about $60 billion in market cap.
It appears investors are still scared that Apple is showing signs of slowing growth.
Apple reported record numbers for fiscal third quarter with $48.6 billion in revenue and $10.7 billion profit. For the same quarter a year ago the Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion.
Apple sold 47.5 million iPhones, 10.9 million iPads and 4.7 million Macs.
“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”
As expected Apple did not reveal specific sales numbers for the Apple Watch. Time Cook said though that the launch was beating that of the original iPhone and original iPad.
He also crushed false analyst reports about slowing Apple Watch sales saying that June was the best sales month for the Apple Watch.
The reason for the drop is a lower than expected forecast for the fiscal forth quarter. Apple forecasts revenue between $49 billion and $51 billion for Q4. These numbers compare to revenue of $42.1 billion of Q4 last year and show a lower growth.
Apple has also missed some of the iPhone sales numbers analysts have estimated for Q3. The lower iPhone sales and weaker outlook paired with the fear that Apple cannot continue to the growth rates in China sent the stock down.
The fiscal year fourth quarter is very difficult as the new Apple product releases are scheduled for the crucial holiday shopping season. Apple is though set to deliver a stellar fiscal year 2016 Q1 with the new iPhone 6S.
The Apple Watch with watchOS 2 will also add to the bottom line in the holiday shopping quarter.
The Apple Watch is the ideal premium Holiday gift. With already high customer satisfaction, there is no reason to believe that the Apple Watch sales during the Holiday season will not be impressive.
This drop in the Apple stock could become an opportunity to new investors getting at a lower price point. Analysts see the Apple stock hitting $150 and up according to an analyst round-up at Fortune.
Buy Now: Sony PlaysStation VR In Stock Here