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Apple’s Stock Price Post New Product Announcements

Posted By Barry Ritholtz On October 7, 2013 @ 2:30 pm In Corporate Management,Investing,R&D,Technology | Comments Disabled

Daring Fireball [1] points out that following most new Apple product introductions, the stock price tends to fall:

Here are the Steve Jobs product announcement stock action:

• 23 October 2001, introduction of original iPod: AAPL fell about 5 percent [2].
• 7 January 2002, Macworld Expo keynote: AAPL fell 4 percent [3].
• 7 January 2003, Macworld Expo keynote: AAPL fell slightly [4].
• 6 January 2004, Macworld Expo keynote, introduction of iPod Mini: AAPL fell slightly [5].
• 11 January 2005, Macworld Expo keynote: AAPL fell over 6 percent [6].
• 10 January 2006, Macworld Expo keynote: AAPL rose over 6 percent [7].
• 9 January 2007, Macworld Expo keynote, introduction of the iPhone, now seen as the biggest and most important product introduction in Apple, and perhaps industry, history: AAPL rose over 8 percent [8].
• 15 January 2008, Macworld Expo keynote, introduction of MacBook Air: AAPL fell over 5 percent [9].
• 9 June 2008, WWDC keynote, introduction of iPhone 3G: AAPL fell 2 percent [10]
• 27 January 2010, introduction of original iPad: AAPL was up slightly on the day, but then dropped and kept dropping for days [11].
• 7 June 2010, introduction of iPhone 4 (last phone introduced by Jobs): AAPL fell slightly, then dropped 3 percent the next day [11].

Note that the 10 percent drop in Apple’s share price following the 5S/5C introduction would have been extreme in the Steve Jobs era. Today, its hard not a heads up comparison — the stock price has been more volatile, the shareholders even more short term oriented. (Not sure if the naysayers are any louder though).

As I wrote almost a decade ago in 2005, Wall Street still does not understand Apple: Analysts Still Underestimate Apple [12]; Sell-siders simply don’t ‘get’ Steve Jobs’ company, based on Wall Street Remains Clueless as Ever as to Apple’s Products [13].

Funny how some things never change . . .

 


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URL to article: http://www.ritholtz.com/blog/2013/10/apples-stock-price-post-new-product-announcements/

URLs in this post:

[1] Daring Fireball: http://daringfireball.net/2013/10/apples_stock_price_product_announcements

[2] AAPL fell about 5 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=09&b=22&c=2001&d=09&e=24&f=2001&g=d

[3] AAPL fell 4 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=7&c=2002&d=00&e=8&f=2002&g=d

[4] AAPL fell slightly: http://www.wolframalpha.com/input/?i=aapl+january+6-9+2003

[5] AAPL fell slightly: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=6&c=2004&d=00&e=7&f=2004&g=d

[6] AAPL fell over 6 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=10&c=2005&d=00&e=12&f=2005&g=d

[7] AAPL rose over 6 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=9&c=2006&d=00&e=11&f=2006&g=d

[8] AAPL rose over 8 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=8&c=2007&d=00&e=10&f=2007&g=d

[9] AAPL fell over 5 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=00&b=14&c=2008&d=00&e=16&f=2008&g=d

[10] AAPL fell 2 percent: http://finance.yahoo.com/q/hp?s=AAPL&a=05&b=6&c=2008&d=05&e=10&f=2008&g=d

[11] AAPL was up slightly on the day, but then dropped and kept dropping for days: http://www.wolframalpha.com/input/?i=aapl+january+26-29+2010

[12] Analysts Still Underestimate Apple: http://www.ritholtz.com/blog/2005/01/new-column-up-at-real-money-011305/

[13] Wall Street Remains Clueless as Ever as to Apple’s Products: http://www.ritholtz.com/blog/2005/01/wall-street-remains-clueless-as-ever-as-to-apples-products/

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