This Is Why Apple Is Down After Hours
In the video below, tech analysts Andrew Tonner and Eric Bleeker discuss Apple's (Nasdaq: AAPL) earnings, which came after the bell and were disappointing enough that the company's shares are down 10% in after-hours trading.
As Eric discusses, Apple was down closer to 4% before its earnings call when it reaffirmed it was no longer "low-balling" its guidance for future quarters. Once Apple clarified its new stance on guidance, the focus shifted to next quarter. In that quarter, it is projecting $41 billion to $43 billion in revenue, which is well below expectations that it would be able to achieve $45.6 billion in earnings. The saving grace for Apple investors? In after-hours trading, Apple's ex-cash P/E is down to an anemic seven times earnings. To learn Eric and Andrew's thoughts, watch the video below.
There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.
The article This Is Why Apple Is Down After Hours originally appeared on Fool.com.Andrew Tonner owns shares of Apple. Eric Bleeker, CFA has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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