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About that miss last quarter ...
Apple (NASDAQ: AAPL) blew estimates for earnings and revenues out of the water after the bell on Tuesday.
Furthermore, in guiding forecasts aggressively upward, the company has smashed through two sets of expectations ahead of trading on Wednesday: the expectations of Wall Street analysts and the expectations that the stock might begin to pull back significantly after rallying to new, 52-week highs once again.
As of Tuesday's close, shares of Apple had finished lower for three out of four trading days, but were not especially oversold. The stock had traded down to near its 10-day closing lows twice in the past three days, but sellers were not been able to take the stock into technically oversold territory.
Given Apple's impressive earnings, revenue and guidance after-hours on Tuesday, it does not look as if the prospects for lower prices in the near-term have gotten any better.
Trading in Apple was suspended for more than 15 minutes after the announcement. AAPL bolted upward once trading resumed, and was trading 7% higher within half an hour of the close (note AAPL had finished down more than one and a half percent on the day).
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So if you missed the pullback in Apple (the last significant correction in the stock, a pullback leading to new, short-term lows or technically oversold conditions was more than a month ago) is there solace to be found in the sell-off in Yahoo! (NASDAQ: YHOO), which also reported on Tuesday?
Unlike Apple, Yahoo! did not blow away analyst estimates in its thoroughly-overshadowed earnings report after the bell. In beating on earnings but missing on revenues, Yahoo! saw traders similarly mixed on the stock, which remained at breakeven levels in afterhours market. Shares of Yahoo! are set to open in neutral territory with a small bias to the oversold when trading begins on Wednesday.
Also on the earnings front, a beat on earnings and a miss on revenues has sent Advanced Micro Devices (NYSE: AMD) lower in after-hours trading on Tuesday. The stock had become increasingly overbought below the 200-day moving average heading into Tuesday's session, closing higher for six days in a row. AMD was lower by well over 2% in afterhours trading on Tuesday.
Want more stocks? Read our latest from 7 Stocks You Need to Know: Volatility and Visa's New High.
David Penn is Editor in Chief of TradingMarkets.com
