FORTUNE — In the words of Jason Schwarz:
“If you can keep a good stock down then you are able to load up for the ride back up. It’s like a slingshot — the harder you pull, the more propulsion you generate.” — Apple: Seven reasons shorts love it
There was a lot of pent-up value in Apple
on Tuesday April 24, the day it was scheduled to release its fiscal Q2 earnings.
Exactly two weeks earlier, the stock had capped a four-month bull run by hitting an all-time intraday high of $644 a share.
Over the next 10 trading days, in what one analyst called “panic profit taking,” the stock fell 13.8% to hit, shortly after 2 p.m. Tuesday, $555 a share. (See Cocking the Apple slingshot.)
With 932.37 million shares outstanding, Apple’s market capitalization had just been reduced by $83 billion. For that kind of money, you could almost buy Amazon
The next morning, Apple opened at $615.64. In one clock tick, the company had gained $57 billion in market value, or roughly one Goldman Sachs
That’s a lot of throwing power, even for a slingshot as big as Apple.
[Thanks to Asymco‘s Horace Dediu for suggesting the metrics on The Critical Path #35 “Joys and Sorrows.”]