It is common to see share prices of a company increase with the announcement of good news from the company. It is also the case that record earnings qualify as very good news. The behavior of stock price increases with record earnings announcements is not always the case, however. For example, in January of 2013 Apple Inc., the maker of the iPhone and Mac computers, announced record earnings of over \($41.7\) billion for 2012. Apple’s stock dropped nearly 10 percent following the earnings announcement. Discuss why a record earnings announcement may lead to a share price increase, but may also lead to a share price decline as experienced by Apple.