With WWDC 2012 upon us, I thought I would take a look at the impact the WWDC and keynote address has on Apple's stock price (in the very short run). The data shows that the Monday of WWDC is a horrible day to buy Apple stock. Since 2003, Apple stock has always closed below where it closed on the Friday before WWDC kicks off. Despite the appeal of the WWDC Keynote amongst Apple fan boys, it seems that investors never think that the presentation meets expectations.
Here is an infographic presenting the Apple stock price on the Friday before WWDC, on WWDC Monday, and on the Tuesday after WWDC.
What explains the nine consistent years of drop off? There is a clear pattern here. In 2003, Apple stock dropped $0.07 after the WWDC we saw consistent drops every year thereafter (61 cents in 2004, 32 cents in 2005, $1.09 in 2006, $4.30 in 2007, $4.03 in 2008, 82 cents in 2009, $5.02 in 2010 and $5.04 in 2011. Could it be that the secrecy and expectations game leading up to WWDC always leaves investors wanting more?
Gregory S. McNeal is a professor who specializes in law and public policy. You can follow him on Twitter @GregoryMcNeal.
