Morning Buzzers: Apple Dips After Announcing iPhone 5 Sales, Facebook Plunges Over 6%
Shares of Apple (NASDAQ:AAPL) dropped more than 1 percent this morning on news that Foxconn, a major supplier for Apple, was forced to close a factory in Northern China after a fight broke out and left 40 people injured. Furthermore, analysts appear disappointed that Apple reported iPhone 5 sales of five million units over the weekend and ran out of supply. “While we have sold out of our initial supply, stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date,” said Apple CEO Tim Cook in a statement. “We appreciate everyone’s patience and are working hard to build enough iPhone 5s for everyone.”
Facebook (NASDAQ:FB) shares fell more than 6 percent today. Despite the recent run-up in its share price, the social media giant is still having a hard time convincing people of its mobile strategy. Barron’s placed Facebook on its cover over the weekend claiming the company is worth only $15 a share.
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Lennar (NYSE:LEN) shares are down 1 percent this morning. The homebuilder announced that net income in the third quarter rose to $87.1 million (40 cents per share), compared to $20.7 million (11 cents per share) a year earlier. Revenue also increased 34.1 percent to $1.1 billion. “In homebuilding, we continue to see strong sales trends translating into increased deliveries, stronger gross margins and improved operating leverage,” said chief executive Stuart Miller. “While materials and labor costs are moving higher, sales-price increases and incentive reductions should continue to offset the impact of increasing costs.” Shares of KB Home (NYSE:KBH) also traded higher on the news.
Shares of Netflix (NASDAQ:NFLX) dropped 0.76 percent this morning. The online streaming company will lose content from A&E and History channels after negotiation talks between the companies broke down.
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