The Timing of This Apple Report Raises Serious Questions

Apple Stock Report

I have a lot of questions about this one. At 4 p.m., the market closed on Tuesday. At that exact moment, Bloomberg – perhaps the most potent financial media company in the world – released a negative report on Apple (NASDAQ:AAPL). That’s right. The moment the market closed, Bloomberg released a negative report about the world’s largest public company and the stock that sits within hundreds of ETFs. Perhaps it was trying to prevent a selloff. But boy, does this one punch the retail investor in the gut.

Here’s What’s Up

The report, released the exact minute that the market closed, says Apple will make 10 million fewer iPhones than it had previously forecasted in 2021. The “why” is obvious to understand. Especially if you’ve been reading Haven Investment Letter. The company has faced shortages of semiconductor chips and other parts from its suppliers like Broadcom and Texas Instruments. The ongoing shortage of everything in the global supply chain isn’t just hitting Apple.

But keep in mind that Apple was expecting to generate about $120 billion in revenue during the final quarter of 2021. To put that into perspective, that’s more money than the company generated in an entire year about ten years ago. After the Bloomberg report indicated that the company planned to cut production and thus reduce its available supply of new iPhones, shares fell in post-market trading hours. Shares fell 1.3% in after-hours trading. More importantly, the shares fell under a critical support level of $140.

Why This Apple Situation Stinks

Many investors have been nervous about Apple’s role in the market heading into the third quarter. The stock comprises more than 6.2% of the weight in the S&P 500. It represents 11.0% of the Nasdaq 100. And it’s part of more than 300 exchange-traded funds. As Apple stock goes, so goes the market.

There’s just one problem. Most retail investors who want to exit the stock would need to wait until the morning. Many retail investors don’t trade in the pre-or post-market hours, keeping them on the sideline while large institutions trade it in the early morning and late trading hours. The selloff could have been a lot worse. But Apple is only one stock. Imagine if this stock fell 4% or 7% or even 10%. And investors or traders couldn’t take action? Especially options traders…

This isn’t the first time I’ve seen this situation where news – that easily could have broken during market hours – ends up in the headlines only when certain investors can act. It’s another reason why I abandoned the mainstream press long ago. Either the action was intentional, or they are stupid, or it’s all a coincidence. I don’t believe in coincidences. I’ll take my chances with the other two options.

Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.
Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.

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