There's plenty of hype leading up to tomorrow's new iPad unveiling. Apple
Gadget buffs and early adopters are going to decide whether they want to buy it or not, but investors may very well be going through the same process as it pertains to Apple's stock itself.
The Wall Street Journal offers up an interesting perspective in its "Ahead of the Tape" column. Spencer Jakab points out that -- outside of the original iPhone -- the average one-week performance for Apple's stock after an iPhone or iPad hits the market is a decline of 3.5%.
Keep in mind that this is when the iOS gadget actually hits retailers. Apple's stock has actually historically risen between the time a new iPhone or iPad is introduced -- as it will tomorrow -- and the time it takes to be widely available. The week leading up to the sale date has actually averaged a 2.9% gain.
The column suggests that speculators hopping on now will be well served to cash out ahead of the actual release. It may seem like sound historical advice, but it's never as easy as that.
Some of the chatter in recent weeks points to a "near immediate" release revealed tomorrow afternoon, so traders may not have a lot of time to ride their wagers.
Investors looking to dump their stock (or possibly even short Apple) when the new iPad is available will be flying in the face of a stock that has been a tremendous winner over the past year. Whether or not the stock dips over the course of a few trading days, the smarter bet is that Apple's shares will be even higher when the next iPhone or iPad comes out.
Things may also be different this time. Unlike the first two iPad rollouts, most analysts believe that Apple will continue to sell a scaled-down version of the iPad 2 at a price point that may compete with the entry-level tablets put out by Amazon.com
There's a chance that tomorrow's Apple announcement may be better -- and with healthier long-term implications -- than past unveilings.
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The Motley Fool owns shares of Amazon.com and Apple. Motley Fool newsletter services have recommended buying shares of Amazon.com and Apple, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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