As with all Apple (AAPL) announcements and new product launches, the hype and speculation was at fever pitch heading into the September 9 unveiling of the new iPhone 6 and Apple Watch. This can be seen best through the eyes of investors. In the hours leading up to the AAPL announcement, the stock was wound as tight as a drum, trading in a one dollar range for most of Friday and Monday.
Then came Tuesday and things got a little nutty heading into and out of the AAPL announcement. Over the course of 2 hours, the stock jumped as high as $103.08 before trading as low as $96.14.
Active investors would call this a noisy day. And based on how the stock traded following Apple’s new product reveal, it appears that a good deal of the AAPL announcement was priced into the stock.
AAPL 30 MIN Chart
Since a stock’s price provides insights into investor psychology, I think it’s worth pointing out a few reasons why the iPhone 6 and new Apple Watch are likely priced into the current stock price:
1) AAPL traded as high $103.74 on September 2nd. This capped off a $10 run higher over a few weeks. The lead up to the AAPL announcement was filled with anticipation and information gathering as investors attempted to peg a value on the stock.
2) AAPL stock jumped over $103 on the announcement, but failed to top the September 2nd highs before immediately selling off (reversing lower).
3) AAPL closed the day near its opening price (down just $0.37). And the stock has subsequently drifted higher, back to the middle of that wide range today.
For reference – Here’s a 3 Month AAPL Chart
Now, to be clear, this isn’t meant to provide insights into where the stock may be headed longer-term; it’s merely a representation of how investors attempt to price in what they know (or think they know). The lead up to the AAPL announcement took the stock to new all-time highs; now it will be interesting to see if the stock needs a recharge before attempting another burst higher.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
