In after-hours trading, Apple (NASDAQ:AAPL) was down in the neighborhood of $450 to $460, so it firmly broke down and through the $500 level. You may be asking, “Why do we care about Apple so much?”
Apple has an out-weighted impact on the market, and we have seen other stocks – most notably one of the stocks we just entered an options position on in SlingShot Trader, Broadcom (NASDAQ:BRCM) – reacting to this negative news from Apple.
Apple was able to beat its earnings per share estimates, but it was unable to beat its revenue estimates. Additionally, the company guided lower for future revenue, and it showed that iPhone sales are not doing as well as everyone anticipated.
As we expected, Apple opened significantly lower at Thursday’s open, so we’ll be watching where it goes from here.
Investor Place advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next trade and get 1 free month today by clicking here.