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

Shares of Apple Inc. (NASDAQ: AAPL) were down roughly 2 percent on Wednesday, following its much-awaited event.

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, 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. Money Beat has called it a “typical buy-the-rumor-sell-the-news type of event.”

Related Link: Analyst: Apple TV Might Be Too Expensive (And Why It Should've Bought TiVo)

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, shares have usually declined, averaging a fall of 1.8 percent in the month that followed the presentations.

As noted in the chart above, the stock does not always decline after product announcements. In 2007, on the day 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.