An Apple a Day?

Yesterday Apple released its earnings. It announced its first ever $1-Billion profit quarter. Profits were $1.14 per share beating the 78 cents that analysts were looking for and the 65 cents it earned in the year before. Income was up 77% from the same period a year earlier. All this is fabulous news for Apple so the stock should be vaulting ahead this morning, right?

Wrong! Apple was down 1.2% in overnight trading. Why is that you ask? Well the stock market is quite a fickle place to be. You can post the most stellar quarter setting records all around yet still the market sees something it doesn’t like. In Apple’s case it looks like future guidance for the next quarter and lower ipod growth rates. People buy stocks based on the company’s potential for future earnings so some short sighted analysts look at things like the next quarter and lower ipod growth rates and think that Apple will earn less money in the future. But each time this happens Jobs proves everyone wrong. He will do it again with the iphone and itv. For with Jobs at the helm it’s always a good time to buy Apple.