This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

If Apple Misses Earnings: The Ultimate Bear Trap?

But, if Apple misses earnings, it might be the ultimate bear trap.

Apple's Cook and Peter Oppenheimer report next week. We say this before every Apple release, but this one probably is the most important in the company's history.

If Apple misses, or otherwise disappoints, the stock could make the recent collapse look tame. That might just present an opportunity of epic proportion for certain, thick-skinned, well-off and experienced long-term investors. Somebody who can take the heat and afford -- in the literal sense -- the inherent risk associated with buying AAPL in the doldrums.

Through all of this noise and hysteria, we're not only forgetting that Cook -- not The Wall Street Journal -- knows the score. We're not only ignoring the case that's actually logical -- AAPL reasserting itself and making a run for $1,000 after all. We are forgetting about that period between Apple products I often call "the bridge."

Apple could crush holiday-period numbers, but guide soft for the January-March period and the stock dives. It goes back to the unrealistic expectations Pallotta discussed.

In the past, Apple has been able to bridge the gap between big launches, largely because of the presence of Steve Jobs and the "newness" of iPad and iPhone. We no longer have these crucial factors, but, chances are, we have "the next big thing." We have a sorry lack of competition.

An earnings miss might actually work in the patient bull's favor. Remember, we're not talking about an overvalued company struggling to grow revenue and earnings and take control of mindshare and market share. We have the exact opposite. That should be the lead story; not misguided noise, smoke and mirrors.

--Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs