Apple stock flirts with $400 after company reports Q3 earnings
For the quarter, Apple sold 20.3 million units of the Apple iPhone 4 and 9.52 million iPad 2 units, which totally smoked estimates. For example, we recently reported that Brian White of Ticonderoga Securities was looking for 17.53 million in Apple iPhone 4 sales and 8.5 million Apple iPad 2 sales.
Apple now has $76.8 billion in cash, up $10 billion in the last 90 days, which could actually hold down the stock because such a mountain of cash can burn a hole in an executive's pocket until they use it to make an ill-thought out acquisition.
Apple estimated fourth quarter earnings of $5.50 a share, below analyst's estimates of $6.42. The Cupertino based firm predicts $25 billion in sales for Q4, lower than the $27.7 billion that Wall Street expects. It should be noted that Apple has a reputation of "lowering the bar" to make it easier for the company to beat earnings estimates.
After hours, Apple's stock soared $21.99 or 5.84% to $398.84, a new 52 week high.
source: DowJones via Yahoo