Apple Stock Falling After Event: Here's How The Stock Acts Historically

Shares of Apple Inc. AAPL are down roughly 2 percent on Wednesday afternoon, following the much-awaited Summer event. Apparently, investors are not psyched about the new iPhone, or the new iPad, or the Apple Pencil – or maybe about none of them.

But, how will the stock perform in the weeks and months to come?

A look at the historical price movements might shed some light on the issue.

Usually, Apple’s stock tends to surge in the month before big product announcements. However, after the product is presented, the shares tend to fall, or at least struggle for a few days (and sometimes, even a month), a study conducted by Bespoke Investment Group reveals. In fact, Money Beat has called it a “typical buy-the-rumor-sell-the-news type of event.”

The chart below shows how the tech behemoth’s stock has behaved before and after each iPhone and iPad launch.

Source: Bespoke

According to Bespoke, Apple has historically gained, in average, 5.2 percent in the month prior to iPhone announcements. Nonetheless, on the actual event days, the shares have usually declined, then averaging a fall of 1.8 percent in the month that followed the presentations.

As it can be seen in the chart above, Apple stock does not always decline after product announcements. In 2007, on the day that the iPhone debuted, the stock gained about 8 percent. However, since that moment, investors’ reactions have been mostly negative.

The table above provides a more detailed look of the stock’s reaction to each product launch.