“I believe there are two major reasons for today’s [AAPL] gain,” Chuck Jones writes for Forbes.
“The first is end of year window dressing,” Jones writes. “While the stock is down 26% from its $705 peak in September it is still up almost 30% from the start of the year. While a portfolio manager will still need to believe that Apple’s shares will perform well, a number of them will want to show a large holding of it in their year-end shareholder reports.”
Jones writes, “The second reason for today’s move is that if tax gain selling had been occurring in the shares (and while hard if not impossible to measure) almost all of that pressure is over. So again if portfolio managers think that the stock will do well they are buyers today.”
Read more in the full article here.
Related article:
Apple shares, S&P, NASDAQ rise on last day of 2012 as politicians bargain to avert fiscal cliff – December 31, 2012
There are no shortage of opinions about why AAPL is moving in one direction or another. But they are only opinions. Does anyone really know? If they did, they should be rich by now.
A lot of people ARE rich (or at least richer) because they “know” Apple. 🙂
Plus 1
I know why the price of AAPL is up. There are more people interested in buying than there are people interested in selling. If you try to figure it out any deeper than that, you’ll just make yourself crazy and you’ll almost certainly be wrong.
AAPL isn’t just “up”… it is cresting a BACN curve as it approaches PIE with respect to YTD revenue (+-BUN).
AAPL is up today because the stock markets are generally up today, on “fiscal cliff” rumors. AAPL gave up more than average recently, so it’s up more than average today.
I think it went up just because most have already sold for their gains in 2012 and they figure the stock will begin to make its pre 1st quarter earnings announcement rise in the next dew trading days.
Also, likely those with short positions in AAPL (including long puts and short calls) were understandably terrified of how the stock will likely surge before the next earnings report later in January. Hence, massive short-covering.
I tend to think it was a sucker’s rally pushing the stock up today. Wednesday it will likely take a nice dump, losing about half of today’s gains. Those hedgies are going to work Apple every which way but loose.
I think it’s more likely to again go up sharply.
It’s up for one reason more buyers then sellers.
Selling pressure is off. We will see new highs by the summer. This company is just getting started. It’s the ECO system they are creating
and it will be at critical mass in a few years.
Wow! What a neurotic place Wall Street is. Whether Bull or Bear the whole feel of today’s attitude toward aapl is completely different than it was even two weeks ago when even the yea-sayers had a hard time finding anything positive to say.