Jon Hilsenrath’s the Fed’s coming with more (mo) stimulus (stim) WSJ story in the last 1o minutes of trading couldn’t save Apple from the wrath of Mr. Market in after hours trading. The stock is getting spanked, down $33 plus after missing top and bottom line estimates. Can’t see a catalyst x/ a trading bounce to take it higher in the near term.
The bears will argue the company is finally bumping up against the upper bound of the law of large numbers and its growth days are over. Clearly past growth rates are not sustainable, but take a look at the annual growth of iPad revenues at 52 percent.
We don’t believe the era of innovation is over at Apple. Still like it long-term though could see further downside as the crowd thins out thinking the party is over.
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