“It’s easy to ignore the market’s troubles – as long as your hot stocks aren’t affected,” Matt Krantz reports for USA Today. “But a surprising number of former superstar stocks aren’t just getting sucked into the market’s declines – but leading them.”
“The count of former leading stocks that are now suffering big-time is swelling as the market struggles,” Krantz reports. “There are 102 stocks in the Standard & Poor’s 500, including Apple (AAPL), Urban Outfitters and computer chipmaker Skyworks Solutions (SWKS) that are down 10% or more from all-time record highs set this year after just setting those this this year, according to a USA Today analysis of data from S&P Capital IQ. A 10% decline is an important measure – since it’s the unofficial definition of a correction.”
“The pain gets even deeper. There are 18 stocks in the S&P 500 that set record highs this year that are now down 20% or more from those all-time highs,” Krantz reports. “The biggest and most dramatic example is gadget maker Apple. Rising fears of a slowdown in China coupled with the fact more U.S. carriers are doing away with smartphone subsidies is turning the market’s biggest winner into one of its biggest losers. The fear is consumers may decide to keep their smartphones longer when they realize how much they’re actually paying for them. Shares of Apple are down 16% from their all-time high price of $134.50 notched in April… Now, the stock is barely up on the year – clinging to a 1.8% gain. Apple stock closed down $2.36, or 2.1%, to $112.65 Thursday.”
Read more in the full article here.
MacDailyNews Take:
pfft, the numbers are strong, but Stock buyers are wusses. About Sept or Oct When the iphone6s/7 Comes out then the stock will rise again. Time and Time again it does so. and Give people the option of the Ecosystem and they’ll choose what they want. Already Android has disappointed many and that sour taste is hard to overcome, especially after their Droid phones are basically worthless when they try to get rid of them, Apple not so. With Strong numbers the Stock Should be around $150. as Samsung/HTC are going deeper into the red.
If you’re confident in $150, by all means buy, on margin, hand over fist. There will be plenty of people willing to sell to you.
Yes, he seems to forget September 2012. Back then everyone on this site was buying AAPL hand over fist. They didn’t know when to sell and lost their asses. Although they will never admit it. Sometimes you just can’t fix stupid.
The only ones who might have lost their asses were those who bought in Sep 2012 and then sold them before Oct 2014, when they dramatically rose above that price and way beyond.
By good fortune rather than expert judgement, I bought a house in Sept 2012 and sold a lot of my AAPL to pay for it. By Sept 2013 my finances were such that I was able to buy some more AAPL at around $65. Even factoring in the drop over the last few weeks, those shares have done very well indeed and as a long term investor in AAPL, I’ve seen drops of this type many times and expect to see many more in the future. So long as you aren’t tempted to sell when they are trading unreasonably low, you have nothing to worry about.
Yes, exactly.
I listened to a long term stock investor in his 90s talk about buying winners.
What stuck is he said, you never buy a good company and hold for LESS THAN 3 YEARS.
Down for more than eight months now. That’s not something that has just happened lately. And it’s just starting.
“Down for 8 months” WOW — wrong!
Its down, then up, then down, then up. Buy when down, sell when up. Easy.
Sold at 132, bought at 124…. OK should have waited for 114!! But hey, it will come back up.
Sell high, buy low. Hold until peaking, sell. Repeat.
PS long apple for retirement fund. but play with a few shares to buy low sell high. Just for fun. 🙂
Ignore all writers who label Apple as a “gadget maker.”
My i”gadgets” are an important part of my life. I use the high-tech stuff all the time, not just to show off. I am not alone. Even years ago, labelling early Macs as “toys” was a lie. (forget about the Performa era, where they low-end Macs were underpowered and not-upgradable by design)
Glad I sold half my portfolio at 128. Now… when to dive back in…
At $105.
Or 98! Wow… I didn’t think it’d go that low, but then again, after it hit 700, it collapsed to $350 or something ( $50 split adjusted ). I think my average cost now is $70 / share ( split adj ).
Throwing Stones
Hardly a “collapse.” AAPL’s 52-week low is about $95. This time next year, sensationalist “big media” will be sounding the alarm after AAPL “collapses” to $135. 😉
One thing that has worried me is the lack of communication coming out of Apple. Has Tim or any of the Apple executives made a public appearance in months? The last thing I can remember is Jeff at a Re/code event, which was a couple of months ago.
Also, it seems the “stories” about the new iPhone have been more subdued this year compared to other years. Last year there were many “rumors” about larger iPhones, sapphire, Apple Pay and the Apple Watch, etc. It was a frenzy. The year before that there were rumors after rumors about Touch ID, phone colors, etc. This year there is a few rumors about force touch, there will be a new Apple TV, but it won’t have a streaming service so don’t get your hopes up and they are working on a car, but it’s years or something away.
Either Elvis has left the building or they are circling the wagons and have something special planned.
Apple PR is either out to lunch, taking a nap or this is by design.
One thing is for sure.. The buyback committee is loving this pull back…
Investors hate the uncertainty…. But if the silance is by design then in a long run we all benifit by more shares being removed from the float .
Buybacks don’t work and it hasn’t worked for Apple. A waste of money.
one thing i never see in these articles is what you should do with your money once you sell your apple stock. savings accounts are worthless; what other stock or stocks are better long term buys? these writers giving all this advice never say what you should do after selling.
They are not giving advice… They hired to manipulate ….
Spend the money on things you enjoy .
If you are a long-term investor, ignore this crap. You will also read in the next couple of days about the supposedly dreaded “death cross” hitting Apple stock. Ignore it.
Schaeffer’s Investment Research published an insightful article today, “Apple Inc. (APPL): Debunking the Death Cross Hype.” The authors researched the 17 times that Apple crossed the much hyped “death cross” (something only idiot technical analysis voodoo devotees would care about) since 1990.
Using historical data to underscore their point, Schaeffer’s concluded:
“Since 1990, AAPL has made 17 death crosses. In the week after, the stock averaged a smaller return than usual — 0.08%, compared to 0.6% — but has been positive 53% of the time, in line with AAPL’s anytime returns.
“Going out to three months after this allegedly bearish signal, AAPL’s average return is 9.8% — higher than the stock’s anytime three-month return of 7.8%. The same applies looking six months out; post-death cross, AAPL averages a gain of 18.1%, compared to its anytime gain of 16%. So, is the death cross really a long-term bullish signal?”
My conclusion: Yes. It absolutely is. And if you plan to hold Apple stock for many years, as I do, this will be a non-event. Besides, as a stock’s price declines, its dividend usually increases in commensurate fashion. If you reinvest dividends as I do, that turns into more shares of stock that you will own. Thus, the patient investor is rewarded.
So when Business Insider, CNBC, Forbes, USA Today et all start screaming that the sky is falling, ignore them. For the year, the S&P 500 is flat. The decline in Apple’s stock price is based on fear, not facts. Keep that in mind.
Yes, we are probably near the top of what has been an incredible bull market run since 2008. We could see a decline in the Dow, SP&P 500 and other averages sometime in the next year or so. But keep in mind that stock bear markets last an average of 18 months, while this current bull market has run for almost seven years. Those who hold and accumulate in bear markets tend to profit significantly when markets rise again.
Unless you absolutely need to sell stocks in the next few months, hang on. Ride out the storms, because the good weather last longer than bad. Be patient and ignore the pundits and noise makers, whose goal is to get you to sell your stock at the wrong time. Your patience will be rewarded.
Very well said.
And that goes for Scamsung and everyone else so why is Apple the only stock that is down 30%? B.S.
It seems you learned typing before you learned reading.
“Shares of Apple are down 16% from their all-time high price of $134.50 notched in April… Now, the stock is barely up on the year – clinging to a 1.8% gain. Apple stock closed down $2.36, or 2.1%, to $112.65 Thursday.”
Important to watch the headlines that matter, but that get ignored by the media outlets, because of the key indicator for the investor:
1. PC industry continues its decline, but Apple inc. is selling more Macs than ever!
2. The Swiss Watch industry saw its biggest decline in sales since 2009 (at the start of the recession)
3. Smartphone market is in decline, but Apple inc. sold 36% more iPhones (… Plus, lest we forget, Tim Cook stated on the last quarterly conference call that only 27% of iPhone users had upgraded to iPhone 6/6 plus, so plenty of room for growth, plus Apple inc. we’re seeing the largest switcher rate from Android ever!!!)
Forget the hype and doom mongers and rely on the hard facts, which show Apple inc. continues to fire on all cylinders, plus as we speak, there are now many fewer Apple inc. stocks on the open market, because they have been retired, to the benefit of the long term investor.
Payback Apple for pissing off millions of previously happy Aperture users. You make enemies of previously loyal users – you pay the price.