Stocks and earnings watch: Apple, Netflix, Zynga

Quick hits about some of today’s Silicon Valley losers on Wall Street:

Apple shares are down sharply, more than 2.5 percent to (revised) $556.55 (end revised) as of this post, after AT&T this morning reported a decline in iPhone sales along with its earnings. Still, Apple is expected to have had another big quarter when it reports earnings Tuesday afternoon, with some analysts expecting earnings of $9.99 a share on $36.7 billion in revenue compared with $6.40 a share on $24.7 billion in revenue in the year-ago period.  The Associated Press reports that the Cupertino company’s “enormous gains have resulted in others’ pains,” including wireless carriers such as AT&T, which subsidize the cost of Apple’s iPhone.

Apple shares have fallen about 13 percent since closing at a record high of $636.23 earlier this month.

Netflix is also getting socked on Wall Street, its shares sinking nearly 14 percent to about $87.85 as of this post, the day after it reported earnings that beat Wall Street’s low expectations but warned that its subscriber additions would fluctuate. While the Los Gatos provider of online entertainment had predicted a loss, its comments on subscribers were seen as key to its earnings call Monday. Netflix is trying to recover from an exodus of customers last year after it increased prices and moved too quickly to push streaming-only.

Zynga shares continue their free-fall. They’re off more than 7 percent to $8.35 as of this post. The social-games maker has seen its stock go mostly lower since it announced a secondary offering last month. Monday, an amended Facebook filing indicated that the world’s largest social network saw decreased revenue from Zynga, setting off speculation about Zynga’s earnings. The San Francisco company is scheduled to report results Thursday.

 

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  • redmond

    The Apple share price in the article looks like the digits were transposed. $255.55 would a bit bigger drop than 2.5%

  • Levi Sumagaysay

    Thanks for the catch. I’ve fixed my mistake.

  • Numbermaniac

    To reiterate: Apple shares are down sharply, more than 2.5 percent to $256.55 as of this post … and have fallen about 13 percent since closing at a record high of $636.23 earlier this month. The math just doesn’t work for me; what am I missing?

  • Larry Cable

    really? what level of fact checking do you people do?

    this level of incompetence is unacceptable.

    I for one am terminating my subscription…

    • Levi Sumagaysay

      Sorry you feel that way, Larry. To other GMSV readers, please know I take mistakes seriously. I can’t promise never to make any again, all I can do is to try to be more careful in the future. For the record, I fixed the typo in the Apple stock price almost immediately after the newsletter went out this morning.

 
 
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