- Apple fell Monday after the company made a series of announcements at a special event at its Steve Jobs Theater in Cupertino, California.
- The company unveiled a widely expected streaming service to compete with Netflix.
- Apple also announced a new gaming service and a physical credit card called the Apple Card.
- Watch Apple trade in real-time.
Apple shares fell as much as 2.2% Monday after the company unveiled a series of new offerings, including its widely anticipated streaming-television service, at a special event in Cupertino, California.
The iPhone giant’s announcements included a new gaming service, a physical credit card in partnership with Goldman Sachs, and a streaming service to compete with Netflix. Apple also unveiled Apple News+, its new magazine service, which will include digital outlets and newspapers.
But while the event was dotted with big unveilings and celebrity appearances from Oprah, Reese Witherspoon, Steve Carell, and Steven Spielberg — Big Bird also made an appearance — the market was unimpressed.
Shares opened in positive territory, but quickly fell into the red, hitting session lows just after 3 p.m. ET. The stock never fully recovered, finishing the day down 1.2%, at $188.74 a share.
Monday’s sell-off came as no surprise to Angelo Zino, an equity analyst at CFRA, who said expectations were high heading into the event. After all, Apple’s TV streaming and news services were already rumored to arrive on Monday.
“As far as this event is concerned, I think there was an expectation that we would get answers to a number of things we didn’t get answers to,” Zino told Markets Insider.
He was hoping to get further clarity on plans for the gaming service’s roll out, as well as the TV streaming service. While there were general details about what the new TV app would entail, he wanted to see pricing details that weren’t announced.
“I think that frustrated investors,” Zino said.
The stock had rallied meaningfully into the announcement, he said, calling Monday’s reaction a “sell-the-news” event.
The special event comes as the Tim Cook-led tech company moves to ramp up its services business amid slowing iPhone sales.
In the fourth-quarter, Apple recorded its biggest iPhone sales decline in nearly three years, according to Gartner data. The company’s forecast for second-quarter sales was also grim, coming in at came in at the low end of expectations.
Apple was up 19% this year, including Monday’s loss. However, its down about 19% from its record high set in October.
Now read more Apple coverage from Markets Insider and Business Insider:
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