Here’s Why Apple Bears Need to Hibernate
It wasn’t the first time someone said something outlandish on Twitter, nor will it be the last, but coming just before Apple (NASDAQ:AAPL) earnings, Matthew Panzarino’s ironic tweet asking that Tim Cook be fired is perhaps one of the more interesting this week.
On Monday, Panzarino, of tech news site The Next Web, tweeted the message “Fire Tim Cook!” Here’s where the irony comes in: Panzarino included a link in his tweet to a couple charts showing the steady upward momentum of Apple’s revenue and profit over the last few years, for most of which the company was led by none other than Tim Cook.
Panzarino’s comment, whether he meant it or not, is the perfect satire of bearish arguments against Apple and its leader. Apple shares have been tumbling ahead of earnings on rumors, among other concerns, that the company may have to push back the launch of the anticipated iPhone 5S from June to July, and the iPhone 6, which was originally slated for later this year, until 2014.
Apple watchers have a tendency to make mountains out of molehills, and can’t seem to see past them. Panzarino’s tweet and accompanying charts paint a pretty clear picture of this problem. Apple’s stock movements tend to be based entirely on rumors and expected catalysts, rather than company performance, and as a result, minor setbacks can result in major sell-offs. However, until recently, shares have tended to bounce back rather quickly. Now it seems the bears have gotten their footing, and Apple shares are trading at their lowest levels since 2011.