It's been called "Nerd Nirvana." Every year since 1983, Apple has held its Worldwide Developers Conference (WWDC) as a way to display its new hardware, software and technologies for developers. It was here that Steve Jobs first unveiled the critically successful and consumer-loved iPod and iPhone devices, which changed both the music and telecommunications industries.

However, despite all the industry-changing product announcements, Apple's investors continue to be unimpressed with the WWDC format. Like clockwork, the company's stock falls every Monday as the showcase begins and various software and other technological advances are revealed.

So what gives? Why is the consumer and tech world excited about Apple's upcoming product launches and Wall Street is not? It could be a case of too many hyped rumors.

A Decade-Long Pattern
Marking nearly a decade in length, Apple's stock has constantly closed below where it closed on the Friday before the WWDC kicks off. In 2003, Apple stock dropped seven cents after the WWDC. Likewise, in 2004, shares fell 61 cents. Every year the technology superstar's shares fall in a consistent pattern by the end of the conference.

With WWDC 2012 recently wrapping up, Apple stock's pattern of rising then falling during the keynote product launch remains intact. Apple's shares, which closed just above $580 on the Friday before the WWDC, peaked at $588 around noon, before steadily dropping throughout the rest of the trading session. Just after Apple's new CEO, Tim Cook, finished the keynote speech and the new major product announcements, shares of the firm fell quickly and closed at $571.17 - nearly 1.58% lower than the previous day's close.

SEE: Good For Facebook, Bad For Google And Apple

So Why the Drop?
With the "Apple Indicator" firmly unbroken, it's pretty clear that the company can't seem to please or meet investor expectations. The real question is why? The purpose of the conference isn't to support Apple's stock price, but to display its new products. This year's WWDC featured some impressive advances, including Apple's new Retina monitor, the world's highest-resolution display, as well as updates to Siri and new lighter weight MacBook designs.

Yet, Wall Street seemed unimpressed and sent the stock down. Perhaps it's a continued case of overpromising and under-delivering? Apple is one of the most widely written about companies on the planet, especially when you factor in the firm's high level of secrecy concerning its new products. To that end, speculation dominates when it comes to the WWDC and new hardware/software launches.

This year, rumors about the possible unveiling of the iPhone 5 as well as a 7-inch iPad tablet dominated headlines. Some analysts even postulated that key Apple designer Jony Ive would unveil a 46-inch Apple-powered television set. Therefore, when Apple didn't produce these items and displayed its new "Mountain Lion" operating system instead, it's easy to understand why investors were unmoved. CNBC analyst Bob Pisani, perhaps summed up Wall Street's position the best when he said that many traders thought that Apple's WWDC presentation was fairly underwhelming and "a relative non-event."

SEE: 6 Must-Have Features For The iPhone5

There lies the biggest issue, when it comes to the WWDC. Tech blogger and institutional investor expectations are always raised too high due to the hundreds of false and ambiguous rumors created by the media.

Over the long term, the company has continually impressed and created completely new categories of must-own devices. However, for a few days every summer, it disappoints, as these rumors prove false.

The Bottom Line
For the last 23 years, Apple's Worldwide Developers Conference has served as the company's main new product showcase. However, despite the firm's long-term performance, shares of the company have fallen every year for the last decade at the close of the event. The reason - too much hype surrounding the product announcements. For investors, the best advice could be to wait until after the conference to buy shares.

Related Articles
  1. Budgeting

    Trunk Club Review: Is It Worth It?

    Take a close look at one of the best-known online clothing services in the country, and determine whether it's a good fit for your style and budget.
  2. Budgeting

    HelloFresh Review: Is It Worth It?

    Discover one of the world's most successful meal subscription services, and learn more about how the service operates and what it costs.
  3. Budgeting

    Beer of the Month Subscription Review: Is It Worth It?

    Learn how you can get access to some of the best craft beers produced in the world, delivered right to your front door every month.
  4. Budgeting

    Just the Right Book Review: Is It Worth It?

    Take an in-depth look at Just the Right Book, a subscription service that delivers personalized book selections based on your reading history and preferences.
  5. Entrepreneurship

    ‘Happy Birthday to You’ Belongs to Everyone Now

    A class action lawsuit over the copyright to the iconic American song “Happy Birthday to You” ends by placing the ubiquitous ditty in the public domain.
  6. Investing News

    Who Does Cheap Oil Benefit? See This Stock (DG)

    Cheap oil won't benefit most companies, but this retailer might buck that trend.
  7. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  8. Budgeting

    Blue Apron Review: Is It Worth It?

    Read about one of the top meal-kit delivery services in the United States, and learn more about what it offers and how much it costs.
  9. Stock Analysis

    JCPenney's Path To Profitability (JCP)

    Learn about what J.C. Penney's management team has been doing to profitably grow its business as the company recovers from years of revenue declines.
  10. Stock Analysis

    3 Chip Makers Betting on the Drone Industry in 2016 (INTC, QCOM)

    Find out which of the big chip makers are betting heavily on a burgeoning consumer drone market that could be the next big wave in consumer electronics.
RELATED FAQS
  1. How does a cost-of-living adjustment (COLA) affect my salary?

    Some companies build salary adjustments into their compensation structures to offset the effects of inflation on their employees. ... Read Full Answer >>
  2. Where can you buy NetSpend reload packs?

    You can only purchase NetSpend reload packs at Giant Eagle, Albertsons, Roundy's and Pathmark supermarkets. NetSpend cards ... Read Full Answer >>
  3. What does marginal utility tell us about consumer choice?

    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
  4. What are some common ways product differentiation is achieved?

    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>
  5. What role does the OEM (original equipment manufacturer) play in the finished product?

    Original equipment manufacturers (OEMs) do not typically play much of direct role in determining the finished product. However, ... Read Full Answer >>
  6. What is the difference between an OEM (original equipment manufacturer) and a VAR ...

    An original equipment manufacturer (OEM) is a company that manufactures a basic product or a component product, such as a ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center