“An economist/analyst is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today”.
Laurence J. Peter
Apple’s financial reporting for the 3rd quarter once again displayed how far off Wall Street Analyst’s are with their predictions. The common problem is that an analyst is digging in the past, but has no view and sense for the day after end of quarter. Major events, in the past and much more future events are not considered in an analyst’s work.
One has a hard time to believe that all these analysts in the last six weeks bought the old iPhone, even though their predictions would indicate so. It appears Main Street, as a buyer of the iPhone, is smarter than Wall Street. People just waited a few weeks until the new iPhone hit the market and stormed the stores. Sales numbers of the first 3 days of sales confirm this. It appears that a Wall Street Analyst is unable to combine future events with a prediction that is just based on a spread sheet.
The work delivered in this case, and in many, many other cases, is plain and simple, bad. Such an insufficient analysis of the market and market events cost (main street) investors billions of dollars. Apple’s share price after reporting fell by almost 7%.
Considering the current events, developments AND the numbers, there is no reason for the shares to drop, unless one considers the idea that certain market makers are at work and want to create opportunities to cash in on Main Street.