LOOKING GOOD: Apple increased its profit by more than 50 percent and boosted revenue by nearly 40 percent over the same quarter last year. It was the second best three-month period ever for the company. Apple pulled it off against a backdrop of economic uncertainty and fears of another recession.
LOOKING BAD: By the sometimes absurd logic of Wall Street, all that was still a disaster. Apple Inc.’s shareholders awoke on Wednesday morning to headlines like “Apple Loses Some of Its Shine,” then proceeded to lose about $22 billion on paper, as their stock dropped by more than 5 percent. That’s all because Apple failed to manage the analyst expectations that can make or break a stock.
HOLD ON: The backlash to Apple’s report Tuesday could very well turn out to be a gross overreaction. If so, this is a prime buying opportunity for investors willing to go against grain.