Apple stock plummets for 5th straight day as they struggle with expectations

The last time Apple slipped more than 10 per cent was in December during a decline that lasted 13 days.

Gross profit margin came in at 39.7%, above the average forecast of 39.5% among analysts polled by FactSet, and also better than the company’s guidance for 38.5%-39.5%.

The blue chip technology company’s shares AAPL, -3.26% closed Monday 10.9% below the February 23 record close of $133, meaning it entered official correction territory.

Apple “has had an unimaginable run during the last a number of years and the earnings have been mildly disappointing to some individuals, so there have been some excessive momentum gamers that used that as an excuse to loosen up”, stated Marshall Entrance, the Chicago-based chief funding officer at Entrance Barnett Associates. Leaked images of a battery have appeared over the Internet, with the unit from Apple’s usual supplier and looking very much like an iPhone battery but marked with capacity of 1715mAh.

Investors may also be concerned about Apple’s debt, which has grown to 20 per cent of assets (though that’s still a fraction of its disposable cash), contracting iPad sales, mixed reviews for the Apple Watch and some user complaints about the just-launched Apple Music service. On the other hand, the company’s adjusted revenue rose about 0.3% to $1.043 billion, which beat analyst’s expectations of $1.032 billion. Apple is a widely followed company, and it makes sense to assume that analysts are keeping this trend in mind and putting the numbers in perspective when analyzing the company’s sales guidance. Many investors are skeptical that Apple will continue to grow iPhone sales starting with the December quarter, when it faces tough comparisons with the iPhone 6 launch.

Prices were remarkably strong, though.

It is excellent news for neither Apple bulls nor the bigger market, the place the inventory makes up three.

At the same time, “the market has held up while Apple is trading down”, he said.

Stock prices are driven by company fundamentals in the long term, but perceptions and investor sentiment can be remarkably powerful on a short-term basis.

According to a report in IB Times, the iPhone 6s and iPhone 6s Plus are expected to be released in September when its predecessors complete a one-year-cycle, but Apple is yet to make any announcement regarding the precise date. It gave investors an estimated range for total sales and gross margin, and it exceeded the high end of both ranges during the last quarter.

“Furthermore, the iPhone 7 will likely have a camera that’s at least as good as Samsung’s camera on the Galaxy S6, especially when it comes to aperture size”. If anything, the short-term decline in Apple stock after earnings looks more like a buying opportunity than a cause for concern. The worry over China’s weakening economy, a key to Apple’s growth, is also a factor, reports CBS.