“If you can keep a good stock down, then you are able to load up for the ride back up. It’s like a slingshot — the harder you pull, the more propulsion you generate.” —Jason Schwarz, Seven Reasons the Shorts Love Apple
In five weeks, supply chain leaks helped drive Apple’s share price down $19.40 (12%), shaving $143 billion off the company’s market cap.
In five days this week, the shares regained everything they had lost and more. The market cap, however, is still $18.5 billion shy. The difference: Buybacks that took a couple hundred million shares out of circulation.
Ironically, the original report that spread the doom and gloom over Wall Street—a January estimate by Ming-Chi Kuo, late of KGI Securities, that Apple would ship only 18 million iPhones X’s in calendar Q1—turned out to be irrelevant. From Strategy Analytics’ Apple iPhone X Becomes World’s Best-Selling Smartphone:
“We estimate the Apple iPhone X shipped 16.0 million units and captured 5 percent marketshare worldwide in Q1 2018. For the second quarter running, the iPhone X remains the world’s most popular smartphone model overall, due to a blend of good design, sophisticated camera, extensive apps, and widespread retail presence for the device.”
My take: Someone was watching the wrong supply chain metrics.