During trading last Wednesday, November 7th, Apple (AAPL) hit a new all-time high of $192.68. Today, with three full trading days behind us since that all-time high, Apple stands at $153.76.
That’s a loss of $38.92 or 20.2% (or about $33 billion in market value) in just over three business days. Apple’s stock chart looks like the profile of El Capitan. Look out below! It’s a base-jumper’s dream.
So, what went wrong at Apple? Nothing. Debt-free Apple, by most credible reports, successfully launched the iPhone in the UK and Germany over the weekend, continues to sell boxes of Macs, iPods, iPhones, and Mac OS X Leopard as if they’re full of (mini) hot cakes (that box is so small, you’d think Greenpeace would issue a laudatory press release), Steve Jobs is still CEO, that over $15 billion in cash and short-term investments didn’t get misplaced, and we even saw some guy walk out of Best Buy on Saturday with an Apple TV!
Apple is a victim of larger market forces: banking issues, oil prices, housing and consumer credit concerns, the usual. Jim Cramer says that Apple is a victim of “fear,” as the market is showing a “sudden aversion to any momentum name” right now:
I say not to be aggressive; there’s no reason to be. I told people I’d have taken off half of any position in Apple and RIM higher, but I see no reason to add to the position right now. It just doesn’t do much to buy that half back up here.
Gee, thanks, Jim, couldn’t you have told us to take half of our AAPL off the table last Wednesday, instead telling us today what you would have done last week?
In after-hours trading so far, traders have shaved another $0.06 off AAPL taking it down to $153.70.
So, what do you think, is this the bottom for Apple? Is it time to buy? Or are we in for more pummeling?
At market close, Apple’s market value stands at $134.13B.
For reference, some selected current market values:
• Microsoft (MSFT) – $312.28B
• Google (GOOG) – $197.29B
• Cisco (CSCO) – $177.31B
• Intel (INTC) – $147.87B
• IBM (IBM) – $139.79B
• Apple (AAPL) – $134.13B
• Hewlett-Packard (HPQ) – $122.56B
• Disney (DIS) – $62.15B
• Dell (DELL) – $60.75B
• Sony (SNE) – $46.85B
• Yahoo! (YHOO) – $33.19B
• Amazon (AMZN) – $31.97B
• Adobe (ADBE) – $24.21B
• RealNetworks (RNWK) – $950.96M
• Napster (NAPS) – $151.07M
AAPL quote via NASDAQ here.