Apple broke $296 overnight after Tim Cook’s remarks

Something Apple’s CEO said Thursday during a companywide virtual meeting triggered a $10 spike in overnight trading. Or was it that COVID-19 drug?

apple aftermarket 296 tim cookFrom Bloomberg’s “Apple CEO Talks Covid-19 Crisis, Return to Work Plan at Company-Wide Meeting“:

Apple Inc. Chief Executive Officer Tim Cook led a companywide virtual meeting on Thursday to address concerns about the impact of Covid-19 and discuss the iPhone maker’s plan to return to work.

During the meeting, Cook called the pandemic an “uncertain and stressful moment,” but expressed confidence that the company will emerge strongly from the crisis, as it did after the 2008 recession and following a near-bankruptcy in the late 1990s.

He said that Apple “isn’t immune to worldwide economic trends,” but that it entered the coronavirus pandemic with a robust balance sheet and stressed that the company will keep investing in a “really significant way” in research and development and future products, according to Apple employees who attended the meeting. A company spokesman declined to comment.

My take: Apple gave up most of those temporary gains in premarket trading Friday. Maybe Apple PR should release Cook’s remarks to the public.

UPDATE: LightShed Partner’s Walter Piecyk suggests that a report on Gilead’s experimental antiviral drug remdesivir might have been a bigger factor.

5 Comments

  1. Jacob Feenstra said:
    Actually it was’t just AAPL that was up in after hours yesterday. Cook’s message might have played into it but maybe not by much. Many tech companies were up. No idea why and no idea why the uptick had dissipated in premarket and opening.

    0
    April 17, 2020
  2. Rodney Avilla said:
    I believe the uptick was due to the antiviral drug test results. There is a lot of money sitting on the sidelines ready to jump in, and news suggesting COVID-19’s effects will be more limited, is reason for some to react. Tim Cook’s remarks, according to other sites, were not so much news worthy as trying to be encouraging. The timing and effect on many other stocks at exactly the same time is most consistent with the test results. However, the test results were very preliminary. And after cooler heads reflected on how preliminary the news was, the uptick started settling down, almost as fast as it went up. The roller coaster ride will continue for some time.

    0
    April 17, 2020
    • Jacob Feenstra said:
      Thanks, Rodney. I missed that news.

      0
      April 17, 2020

Leave a Reply