By Robbie Citrino for Kapitall.
It's early June, and that means it's time for Apple ( AAPL ) investors to pick a side.
Every year around WWDC, Apple's conference for developers, the company announces new products in addition to giving an update on company performance.
Surrounding these events, Apple's share price has historically taken off in either direction based on their coming products and speculation as to changes in revenue and expenses. The original reaction by investors in respect to the future, however, is rarely correct.
On January 27, 2010, the day Apple announced the original iPad, its share price dropped 4%. Little did the overreacting shareholders know that the product would eventually sell 26 million units in a quarter and generate billions in revenue on an annual basis, while ushering in a new category of tech products.
They also underestimated the potential of the iPhone back in 2007, sending its market cap to just $80 billion the day they announced the product that would almost single handedly boost the company's market cap to $660 billion.
Apple announcements have been known to shake up other stocks as well. BlackBerry Limited ( BBRY ) fell almost 10% upon the news of the iPhone's first release. AT&T ( T ) and Verizon ( VZ ) tended to react wildly in the iPhone's early years as AT&T reaped the benefits of an exclusive deal with Apple. Parts suppliers such as Qualcomm ( QCOM ) and Invensense ( INVN ) also tend to vary wildly on announcement days since it is the first time the public hears of their coming collaborations.
With so much hinging on one company's announcement it is important to watch these stocks' volatility with some skepticism, as it is clear that investors' first reactions are not always right.
Click on the interactive chart to view data over time.
1. Apple Inc. ( AAPL , Earnings , Analysts , Financials ): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $545.25B, most recent closing price at $633.0.
2. AT&T, Inc. ( T , Earnings , Analysts , Financials ): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $184.09B, most recent closing price at $35.47.
3. BlackBerry Limited ( BBRY , Earnings , Analysts , Financials ): Provides wireless communications solutions to customers worldwide, including the sale of BlackBerry handheld devices, and the provision of data communication, and compression and security infrastructure services. Market cap at $3.98B, most recent closing price at $7.60.
4. InvenSense, Inc. ( INVN , Earnings , Analysts , Financials ): Designs, manufacturers, and sells motion processing solutions and micro-electro-mechanical system (MEMS) gyroscopes for consumer electronics. Market cap at $1.7B, most recent closing price at $19.30.
5. QUALCOMM Incorporated ( QCOM , Earnings , Analysts , Financials ): Engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. Market cap at $135.79B, most recent closing price at $80.45.
6. Verizon Communications Inc. ( VZ , Earnings , Analysts , Financials ): Provides communication services. Market cap at $206.89B, most recent closing price at $49.96.
(List by Robbie Citrino. Monthly return data sourced from Zacks Investment Research. All other data sourced from Finviz.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.