Apple

[Grieve]

I feel like they should beat estimates...if Microsoft is up on earnings, Apple has to be, heh.

Well they did beat, but of course since this is Apple that means a sell-off.

Earnings were actually strong - nice beat on earnings and rev, and they guided up on revs for Q1 (55-58b, vs 55/7b estimate). I'm guessing it's selling off because the Q1 gross margin guide was lower than some hoped - 36.5-37.5%. That's flat from this quarter (37%), and less than the 37.9% that analysts were expecting. But...those analysts probably weren't modeling the fact Apple are now giving away the OS and a bunch of software completely free. Software has very very high margins compared to hardware...

I think the stock will recover over the next few days, but we'll see. High revenue should trump lower margins. Hell, look at Amazon - every quarter they report higher revs but negative margins (i.e. they lose money), and the stock rockets ever upwards...