Dediu then chronicles 13 “bear markets” for Apple stock, beginning on From April 27th 2001 until today.
“Sounds dramatic. The even more dramatic twist is that in this same time frame the share price increased by 576 points or the equivalent of 6,294%. Nevertheless, there were 13 episodes when the shares dropped violently and sometimes persistently for long periods,” Dediu reports. “Apple went from being irrelevant to being too big without passing through being boring. So there is a simple explanation for occasional panic: Apple is not predictable.”
Dediu reports, “At least since the iPhone launched, every dramatic drop in share price was followed by a surge in earnings growth. One could even say the worse the bear, the better the growth… When Apple’s performance is foreseeable the stock moves slowly upward. When its performance is unforeseeable the stock moves dramatically downward. A pithy way of putting it is: No news is good news. Good news is bad news.”
Much more, including the usual excellent explanatory graphs, in the full article here.
[Thanks to MacDailyNews Readers "Dan K." and "Brian" for the heads up.]