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Entries in Shares (29)

Thursday
Jan242013

Apple Shares Drop on Slowdown Worries

Kevork Djansezian/Getty Images(NEW YORK) -- Apple stock took a hit the morning after its first-quarter earnings were released, falling about 10 percent.  Investors are worried that growth is slowing at Apple, the world's most valuable company.

Shares of Apple dropped $52 to $462 at 10 a.m. EST Thursday.  The tech-heavy Nasdaq index, in which Apple trades, was also down 0.27 percent to 3,145.

On Wednesday, after the market closed, the company reported that it sold 47.8 million iPhones in the quarter, compared with 37 million in the same quarter a year ago.  Many investors had hoped that the company would sell 50 million iPhones, which drives Apple's earnings.

"No technology company has ever reported these kinds of results," Tim Cook, CEO of Apple, said on the earnings call Wednesday.

Investors eagerly awaited Apple Inc., based in Cupertino, Calif., to report its earnings, seeking clarity after a number of rumors about iPhone parts and sales.

Earlier this week, there were reports about the next iPhone being released in June.

"Certainly a new product line is in the works," said Brian Colello, Morningstar senior equity analyst.  "It remains to be seen what Apple will ultimately come out with and when.  Those are certainly factors to keep an eye on."

Last week, a report that Apple had decreased its order for iPhone parts may have contributed to a decrease in its stock price to near $500.

"It will be interesting to see if Apple is really pushing the envelope in terms of innovation and shortening the product cycle," Colello said.

Colello said Apple is facing growing competition from Samsung.  Last summer, when Apple released the iPhone 4S, Samsung also released its Galaxy S 3, which saw strong sales.

On Wednesday, Apple said it sold a "record" 22.9 million iPads in the quarter, compared to 15.4 million a year ago.  The company also sold 4.1 million Mac computers, compared to 5.2 million in the same quarter last year.

On Apple's earnings call, CFO Peter Oppenheimer attributed the Mac slide to the refreshed Mac products not being released until December.  Its new iMac desktops were not sold until early December.

"We believe our Mac sales would have been much higher without those constraints," Oppenheimer said on the call.

Copyright 2013 ABC News Radio

Wednesday
Oct312012

With Employee Shares for Sale, Facebook Stock Falls

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- Shares of Facebook dropped Wednesday upon news that employees can start selling restricted stock in the company.

In all, 234 million more shares and stock options held by employees and executives at Facebook could potentially hit the market.  

CEO Mark Zuckerberg has made it clear he's not selling -- at least not immediately.  He said he won't sell until next September at the earliest.  

Facebook stock has struggled since its IPO in May, but did see a boost last week when Facebook posted strong third-quarter earnings.

Copyright 2012 ABC News Radio

Thursday
Oct252012

Apple Sold 27 Million iPhones in 4th Quarter; Earnings Lower Than Expected

Feng Li/Getty Images(NEW YORK) -- Apple Inc. (NASDAQ: AAPL), the world's most valuable company, reported lower-than-expected fourth-quarter earnings Thursday because it's having trouble keeping up with demand for its market-leading products.

Inventory issues have reportedly affected iPhone 5 sales, struggling to keep up with orders.

The company sold 26.9 million iPhones in the last three months, up 58 percent in the same period a year ago. The company sold 14 million iPads, up 26 percent, and 4.9 million Macs, a one-percent unit increase. The company sold 5.3 million iPods, a 19-percent decline from a year ago.

"We're very proud to end a fantastic fiscal year with record September quarter results," Tim Cook, Apple's CEO, said in a statement. "We're entering this holiday season with the best iPhone, iPad, Mac and iPod products ever, and we remain very confident in our new product pipeline."

Apple's "pipeline" of manufacturing and distribution will be key in the next coming months during the holiday season, which is traditionally the best quarter for the tech company and many other retail companies.

Apple earned $35.97 billion in revenue, slightly higher than the $35.80 billion some analysts expected. Meanwhile, its earnings were $8.2 billion, lower than expected.

Shares of Apple closed down 1.14 percent to $609.80 a share at the end of regular trading.

Tavis McCourt, analyst with investment firm Raymond James, said he expected slower growth in the next few quarters than in previous years.

Raymond James expects Apple's stock to reach $730 in a year.

"Apple is doing very well. They are taking market share across all their product categories, but the economy is slowing as well," he said.

On Tuesday, Apple announced the new iPad Mini, which is slightly cheaper at $329 compared to the $399 iPad 2, a fourth-generation iPad and several new Mac computers, including a 13-inch Macbook Pro.

Overall, McCourt said he was "pleased" with Thursday's product announcement, though Apple's main revenue driver is the iPhone.

"The iPad, though successful, is still only in the early stages of its growth," he said.

On Tuesday, Apple said it sold its 100 millionth iPad two weeks ago.

Apple had 3.2 million iPads in its channel at the end of June and may have bled the previous iPad inventory ahead of the fourth-generation iPad launch, negatively impacting the number of products available to the public, McCourt notes.

In July, Apple reported lower-than-expected third-quarter revenue of $35 billion, while analysts had expected $37 billion. The company reported higher profit of $8.8 billion for the third quarter, up from $7.3 billion the previous year. The company had sold 17 million iPads in that quarter.

Copyright 2012 ABC News Radio

Tuesday
Sep182012

Apple Stock Closes Above $700

Hemera/Thinkstock(NEW YORK) -- Not that long ago $400 was considered by some to be too high a price to pay for Apple stock, but now that seems like a bargain as the stock closed on Tuesday above $700 for the first time -- $701.91 to be exact.
 
The company’s stock has been on an upward march since rumors of a new iPhone 5 started.
 
Now the iPhone 5 is here, there were more than two million pre-orders in the first 24 hours, and the stock price has hit another milestone.
 
Copyright 2012 ABC News Radio

Thursday
Aug162012

Facebook Stock Resumes Slide as Lockup Expires

EMMANUEL DUNAND/AFP/Getty Images(NEW YORK) -- The beaten-down shares of Facebook (Nasdaq: FB) slid further Thursday morning, the first day the social network's "lockup" expired for early investors, allowing them to sell their stakes.

Expectations were sky-high that early investors and employees would sell their shares and become millionaires or billionaires.  But now that the stock has fallen almost 50 percent below its offer price, disappointed shareholders have been cashing out.

Shares were down over 6.3 percent to $19.85 in mid-morning trading.

Facebook's stock has been in a near free fall since employees announced they were leaving the company and institutional funds started selling.  Times were rough since Facebook's initial public offering on May 18 when technical glitches on the Nasdaq exchange caused delays in confirming trades.  Nasdaq announced in June a $40 million fund to compensate investors "disadvantaged" by the technical problems.

Facebook's IPO was priced at $38 and stock opened in May at $42.05.  It closed that day at $38.23 but has since been down 36 days more than it's been up.

Facebook has lost about $40 billion in market value since the IPO, and as such is the worst major IPO ever, according to Bloomberg.

Copyright 2012 ABC News Radio

Thursday
May242012

Facebook Stock Jumps as Analysts Call for Better IPO Rules

EMMANUEL DUNAND/AFP/GettyImages(NEW YORK) -- Facebook stock closed up for the second day in a row as Facebook's underwriters continued to face heat over whether they gave an unfair advantage to preferred clients. Many average investors lost thousands of dollars betting on Facebook's IPO.

A week after the company had the biggest tech IPO in U.S. history, Facebook stock closed up 3.2 percent to $33.03 on the NASDAQ Thursday.

Reports that large clients, such as mutual funds and wealthy investors, received a warning about Facebook's muted revenue prospects have attracted the attention of lawmakers and securities regulators.

Capital Research and Management, an investment firm based in Los Angeles, may be one of the preferred investors that received a warning from an underwriter about Facebook's lower-than-expected revenue days before the IPO, the Wall Street Journal reported.

"We, like other investment management firms, had access to publicly available information and we made an investment decision based on publicly available information," Chuck Freadhoff, a spokesman for Capital Research and Management, told ABC News.

Jim Krapfel, an IPO analyst with the investment firm Morningstar, said that activity may first sound "legal and common."

"Clearly, though, the rules need to be changed to put all investors on a more even playing field," Krapfel said.

Three investors filed a class-action lawsuit in a Manhattan federal court on Wednesday against Facebook's board and its underwriters, saying its filings with the Securities and Exchange Commission were "false and misleading." The Senate banking committee and the Securities and Exchange Commission said they are looking into the issues related to Facebook's IPO.

Jacob Zamansky, a securities attorney in New York who is not involved with that suit, said that it appears Morgan Stanley may have violated securities rules.

He said the underwriters' alleged actions fly in the face of a $1.4 billion settlement in 2003 with 10 banks. The settlement came after an investigation by Eliot Spitzer, then New York state's attorney general. That agreement settled charges of corruption against analysts after the so-called dotcom bubble burst and provided that issuers would follow "fair disclosure" rules and provide the same information to all clients.

Morgan Stanley has said the bank "followed the same procedures for the Facebook offering that it follows for all IPOs."

"After Facebook released a revised S-1 filing on May 9th providing additional guidance with respect to business trends, a copy of the amendment was forwarded to all of MS's institutional and retail investors and the amendment was widely publicized in the press at the time," Morgan Stanley said in a statement.

A spokesman for the New York Stock Exchange denied reports that Facebook was considering shifting from the NASDAQ after technical glitches delayed trading in Facebook stock last Friday by over 30 minutes.

"There have been no discussions with Facebook regarding switching their listing in light of the events of the last week, nor do we think a discussion along those lines would be appropriate at this time," NYSE spokesman Richard Adamonis told ABC News.

Copyright 2012 ABC News Radio

Tuesday
May222012

Facebook IPO: Lessons for Investors

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- With Facebook's stock down 11 percent at Monday's close, many retail investors who thought they were getting the hot ticket in town may soon be playing hot potato with their Facebook shares.

If there's one lesson to be learned from Facebook's IPO letdown, it's don't buy a stock based on emotion, said Bill Middleton, president of Sound Portfolio Advisors of Mystic, Conn.

Those excited investors who bought at $45 a share -- Facebook's high on Friday -- had a rude awakening when the stock opened on Monday below its offer price of $38, and closed at $34.03.

"This is one of those things built on hype, and they maximized the hype," Middleton said.

Nevertheless, hype is to be expected for a such a widely used consumer product.

"What people forget is that Google went down, too, not from the IPO, but down the first week," Middleton said.  "So, what you're seeing with Facebook is not completely uncommon.  This, though, is a different kettle of fish."

Google was priced at $85 a share at its IPO in 2004 -- 74.6 times its earnings, or price-to-earnings ratio.  Shares of the search engine and advertising behemoth, based in Mountain View, Calf., closed up 2.28 percent on Monday to $614.11 a share.

Facebook's IPO price of $38 a share was 100 times its earnings -- a high price-to-earnings ratio, even for an eight-year-old company, Middleton said.

"That's a difficult environment, with Microsoft at 10 times earnings," said Middleton.  "Exxon is at 10 times its earnings.  Even Apple is at 14 times."

Not only was last week a difficult environment for stocks -- one of the worst of the year -- but Facebook's IPO terms with its underwriters or investment bankers may have also created an unfavorable environment for retail investors.

"Usually, coming off the IPO price, the underwriters try to leave a little room for retail buyers to have a good experience," Middleton said.  "Here, Facebook squeezed the underwriters so hard that they squeezed every last penny they possibly could out of the offering price."

Copyright 2012 ABC News Radio

Monday
May212012

Facebook Shares Plunge Below IPO Price

Peter Foley/Bloomberg via Getty Images(NEW YORK) -- Shares of Facebook plunged below its IPO price and previous close, opening down 11 percent to $33.83 on Monday morning.

Facebook stock closed at about $38.23 on Friday evening, only slightly above its IPO price of $38 a share set on Thursday night.

“Facebook is getting slammed as investors who hoped for a momentous run instead take the disappointing first day performance as a cue to flee the stock.  The price action is also more telling of what likely would have taken place Friday afternoon if Morgan Stanley hadn’t been propping up its shares above the offering price,” said Jim Krapfel, IPO analyst with investment firm Morningstar.

“There was some thought that Morgan Stanley would continue to prop up shares today but clearly the demand was too overwhelming to keep shares from falling.  The weak action clearly shows that some of the speculative froth in technology IPOs has abated, welcome news in our view,” Krapfel continued.

The IPO had some technical glitches on NASDAQ Friday morning, delaying its trading and confusing some investors who did not receive confirmation of their trades until hours later.

Copyright 2012 ABC News Radio

Friday
May182012

Former Facebook Employees: Company Celebrates New Ideas, Not New Wealth

Facebook(NEW YORK) -- Facebook’s stock market debut seems to be creating a frenzy everywhere but at Facebook.

Shares closed at $38.23 after fluctuating between $40 and $42 for most of the day.  Gizmodo reported shares were trading at a record-breaking 2.7 million per second within the first 30 seconds of trading.

But after founder and CEO Mark Zuckerberg, Facebook COO Sheryl Sandberg and a throng of cheering employees rang the Nasdaq opening bell from the company headquarters in Menlo Park, Calif., at 9:30 a.m. ET Friday, the campus became a ghost town.

Nightline anchor Bill Weir talked with Justin Mitchell, a Facebook engineer, and Donna Gutman, who worked in Facebook’s user operations, in New York City’s Times Square shortly after trading began. Both said they had been with the company for more than four years but had recently quit, taking stock options with them.

On Thursday night, Facebook priced its initial public offering  at $38 a share, selling $16 billion worth in equity and valuing the company at $104 billion. It’s the largest tech IPO of all time.

All Facebook employees are stock holders, Mitchell told Weir. So why isn’t he out buying a Ferrari?

“It’s not the company culture to go out and celebrate this type of stuff,” Mitchell said. “The culture of the company is very much of not showing off money, not being ostentatious but instead, really just making good products, and that comes from the top.”

One of the big questions is, now that Facebook has gone public, will it have to tailor user experience to meet shareholders’ expectations. But Mitchell said he thought Facebook’s IPO filing would have little effect on how it does business.

“My hunch is that it’s not going to change the company culture that much,” he said. “Once we filed for the IPO people put up signs that said, ‘Stay focused, Keep shipping.’ I think it’s that type of mentality that you’ll see continue on in the future.”

Thursday night, Facebook celebrated its newfound wealth with a wild bash at company headquarters that only Facebook could throw -- a “Hackathon,” an all-night, a code-writing “rager,” where Facebook employees worked on their own special projects until the morning light. They do one every couple of months, according to the company’s blog. Those projects are what Facebook deems important, Gutman said.

“I think that the company needs to keep doing what its doing and the work people did last night shows that’s what people are focused on,” Gutman said.

Copyright 2012 ABC News Radio

Thursday
May172012

U2′s Bono to Overtake Paul McCartney as World’s Wealthiest Rock Star

Michael Tran/FilmMagic(NEW YORK) -- Paul McCartney may be about to be surpassed as the wealthiest rock musician in the world by U2 frontman Bono.  NME.com reports that the Irish rocker, who owns a 2.3 percent stake in Facebook, is expected to see his net worth increase significantly when the social-networking company goes public on Friday.

Facebook is valued at more than $100 billion, which will make Bono’s share worth in excess of $1.5 billion.  In comparison, the Beatles legend’s fortune is estimated to be slightly over $1 billion.

Bono bought his Facebook shares for about $90 million back in 2009 through his private equity company Elevation Partners.

Copyright 2012 ABC News Radio







ABC News Radio