“For portfolio managers Apple Inc.’s swooning stock price has been felt far and wide,” Steven Russolillo reports for The Wall Street Journal.
“At the end of the third quarter — less than two weeks after Apple shares touched record highs above $700 — some 77% of large-cap growth managers had more than 5% of their portfolios weighted in Apple, according to eVestment, a provider of institutional investment data,” Russolillo reports. “While eVestment’s data for the fourth quarter aren’t available yet, analysts assume many of these managers were not only hurt by the stock’s big tumble, but also trimmed some of their stakes in the final three months of the year. Shares fell 20% during the fourth quarter and through Monday’s close are down 36% from record highs.”
Russolillo reports, “Investors large and small are wrestling with what could be a watershed moment for Apple. In many fund managers’ eyes, the recent decline could mark Apple’s transformation from a high-flying growth stock to a more plodding value stock. Earlier this month, data from Sanford C. Bernstein & Co. showed growth investors have been moving out of Apple for the past year, while value investors have found the stock more attractive.”
Read more in the full article here.
fund managers are a little trigger happy no wonder netflix crashed so hard last time
Unrelated: AMZN + $27 after hours.
Updated: 260.35 15.69(5.68%) 4:00PM EST|After Hours : 268.13 7.78 (2.99%) 5:29PM EST
5:33 ET – 281.85
So, C1, how do you explain the collapse of AAPL? You and I have a in common situation in that we are rich in AAPL in single digits but really pissed that what we though we were worth has crashed and burned.
Do you think rampant mismanagement of the once great company has anything to do with it? Why is AMZN soaring? Take a look at the dramatic difference in how the two companies respond to consumer demand, how they ship what you want TODAY, how they cater to a fast-paced, fickle, pop culture market and thrive on it as compared to how Tim Cook just looks puzzled about it all. Do you see any relief ahead?
If I may butt in here, I have some observations.
First, I agree that Apple’s revenue is being hurt by not having products that ship immediately (at least on the online store). I personally waited weeks for my iphone 5 and even an 11-inch MBA with a slightly beefed up configuration took a week or so to ship. It has to hurt in a “me want it right now” society.
However, I look at the total sales revenue of Apple in just one quarter and it blows my mind that Apple was able to ship what it did. I think Apple has grown up to a point where its demand is so out-of-this-world high that it really struggles to put out the build quality it wants. Back in the day (like even a few years ago) it could balance demand with desire for perfection.
I think a few things are true, though, that will make Apple a $800 stock within a year:
1) They will continue to innovate and excite consumers that really drive everything.
2) Supply will catch up with demand as Apple gets through these growing pains.
3) Despite all the negativity, Wall Street will pull its heads from its asses and allow the stock to return to a reasonable value. This crash and burn stuff has been a tactic to make money for those in the know, and the time is ripe for the pendulum to swing.
I won’t discuss Amazon company stuff here.
As far as aapl goes, this is nothing new. Wall street is retarded and doesnt know value when its been biting it in the ass for a decade. But given a long enough timeline, value really does win out. Just be patient. Hold on. Great things are afoot.
Sure glad I held onto my AMZN calls through earnings today. Nice. Almost sold them this afternoon. Diversity. Never put all your eggs in one basket. Never fall in love with a stock. They’re companies, not people. You fall in love with people. You invest in companies.
And people are what form companies,
so invest in the people not the stocks.
Well obviously unless you have chipmunks running the company you’re investing in the people. But clearly, that’s not what I said. All companies, good and bad are run by people. You understood that to begin with. But never let your emotions get in the way of your investing. Or flowery rhetoric.
Title should read “Fund managers manipulate stock”