I read an article in USA Today last week that suggested the real reason for the downturn in stock is how the company reports its earnings expectations. Under Steve Jobs, the company released grossly underestimated earnings forecasts the company would routinely easily surpass. Under new CEO Tim Cook, the company now releases more realistic earnings estimates. While the company still surpasses the more realistic expectations, less savvy investors assume the company is not doing as well as when earnings forecasts were grossly under estimated.
I read an article in USA Today last week that suggested the real reason for the downturn in stock is how the company reports its earnings expectations. Under Steve Jobs, the company released grossly underestimated earnings forecasts the company would routinely easily surpass. Under new CEO Tim Cook, the company now releases more realistic earnings estimates. While the company still surpasses the more realistic expectations, less savvy investors assume the company is not doing as well as when earnings forecasts were grossly under estimated.