“If The Motley Fool allowed for subtitles on articles, I’d have tagged this one ‘Waaah! Why isn’t my Apple (AAPL) stock at $1,000? Everyone said it was a blowout quarter! All the people on CNBC said it was going to $1,500. Waaah!,’” David Forrest writes for The Motley Fool. “Yes, I know, that would be a really long subtitle.”
“Kidding aside, and given how strong the most recent quarter’s numbers were, it’s fair to wonder why the stock is going down and not up,” Forrest writes. “First the stock drops from $644 all the way down to $555 the day of earnings, and then it climbs up to $618, and then it falls right back to Friday’s close of $565. None of it makes sense, right? The stock is so cheap, trading at just 11.5 times next year’s earnings, right?”
There are lots of short-term explanations for why Apple’s stock is going down:
• The broader market is falling.
• It broke its 50-day moving average.
• It had to fill the gap.
• It’s just profit-taking; people have made a ton of money.
• The jobs numbers were terrible, but not bad enough for QE3.
• The law of large numbers will kick in.
• The company provided a conservative outlook for the June quarter.
• Apple has some tough comparisons ahead.
• Sell in May and go away.
• Europe is in turmoil. Sarkozy lost and the pro-bailout Greeks got tossed.