So, yesterday Apple (you remember them, right?) announced their quarterly earnings. According to reports, Apple generated $35 billion in revenue (that’s billion with a “B” or to put it another way, 35 million, million dollars). They generated a profit of $8.8 billion (see above for description of the “B-word”). While on their way to amassing nearly $9 billion in profits, Apple sold 17 million iPads (an increase of 84% over last year at this time), 26 million iPhones, 4 million Mac computers, 6.8 million iPods, and 1.3 million Apple TVs. Sounds pretty darn good to me!
Unfortunately, it wasn’t good enough for Wall Street. Apparently Apple did not meet analyst expectations, so as a result, their stock dropped about $25 a share (about 5%) on news of such a poor earnings report.
Are you kidding me? Just to give you a sense of what 8 billion dollars looks like, imagine a stack of a million dollar bills. If you could stack a million dollar bills, it would stack to a height of 361 feet. Now multiply 361 feet times 8 million million. Check my math, but if I’m correct that translates to 546,969,697 miles. That’s 6 times the distance to the sun! That’s a LOT of money.
Despite what media outlets may be reporting today, everything is fine at Apple. It’s just a case of good news turning bad. And although investors may think it’s bad news that Apple stock has dropped about 5 percent today, others see it as an opportunity to buy more at a lower price! So, that’s a case of bad news that’s actually good news!
Now Netflix on the other hand . . . that really is bad news.