Apple stock has been on a wild ride the past several months, going through several set backs and volatility that investors seem to love. If you have been holding onto Apple stock for some time or traded it on short timeframes, there is no doubt you are well aware of this roller coaster ride. You may have picked up some pieces of information to help you predict where Apple will go next, but how do you know if the stock is really the right move? Monitoring Apple stock news might be crucial for traders that want to be on top of the latest information.
Apple stock news influence
One of the most common theories around Apple stock is that the earnings report will disappoint, and analysts will downplay the growth in profits they reported. This can happen with any big company, but it is especially worrisome considering the size of Apple. If Apple reports earnings that are much lower than expected, it can send the stock prices tumbling. If the Earnings Report comes out saying the company broke even or better than expected, investors can crow about the good earnings and forget about the poor stock price. But either way, it’s usually better to be late than first when it comes to predicting Apple stock price movements.
Apple stock now
A popular theory around Apple stock is that the release of the iPad will be a huge success, and the stock prices will rally. There is some truth to this theory, especially if there is heavy competition from tablets in the market. However, Apple is a very large company, and their product line is very solid. While the iPad may become a hit, Apple can also fall into a rut in terms of new products if they fail to develop something exciting.
The timing of Apple stock news releases is also important. They need to release significant news about an upcoming product launch, or event, to capture the attention of investors. If they wait too long, the competition will get the early lead and the opportunity to take share away before Apple can regain control. It can be risky to place a lot of stock in Apple stock without solid supporting evidence that the company has a new product in the works. Waiting too long also allows competitors to scoop up the opportunity before Apple can react. It’s better to act quickly if you see any sign that a new product is on the way.
What strategy to pick?
One of the main things that stock traders use to predict the direction of Apple stock is how the company does during tough financial times. If the iPhone was released with a strong sales forecast, and then later fails to meet the projection, that will have a major impact on the stock price. It is difficult to draw any conclusion about Apple based on its financial statements, but analysts often make an error by only looking at last year’s income statement. They do not look at the past year’s results. It’s possible for a stock to go in one direction and then drop and then bounce back dramatically in the following months.
Timing is everything when it comes to predicting Apple stock price movement. It’s better to be early than late. The stock market can become very volatile in a short period of time. If you are able to get in before it rises, you may just have a great buy.