Shares of Apple Inc. shed 20.2% in just over three business days

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.

Ouch.

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? wink

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.

100 Comments

  1. The European iPhone launch has gone off tremendously. As long as the stock price hasn’t dropped because of something Apple said or did, this is just a panic. Don’t sell your shares now, and buy more if you can. This company is going to be reporting stellar profits and growth every quarter for the next two years at least. The iPhone will make Apple into an even bigger giant than it already is, and christmas sales of the new Macs with Leopard and the new iPods will be through the roof.

    Remember december 2006…AAPL hit a low of $56/share. I’m kicking myself for not having bought more during that dip. This time I’m not going to miss the boat.

  2. Finally you guys are getting with reality.

    This is JUST AS IMPORTANT, or even more so, than all the good news.

    When a site only cheers, and never boos or at least scratches it’s head, that’s when the site isn’t much use.

    You guys should change editorially to allow for bad things that happen too, like this article – http://biz.yahoo.com/ap/071112/wall_street.html?.v=52 – which contains the lines –

    “Apple Inc. fell more than 7 percent after analysts described the weekend European launch of the iPod as disappointing.”

    That’s the first thing I could find today to explain the extra drop in Apple, and you guys should be dealing with THAT part of things as well.

    It happens that I think Apple is very much a good company and all that, and it’s a killer buy now as a stock, but the kind of drops we’re seeing are not just about the general market, they reflect general ignorance about Apple and it’s core strength as a company, which is very solid.

    That ignorance is fostered by sites that don’t speak about doubt, or at least don’t teach and talk more about the REALITY of the company.

    IT’S NOT ALL ABOUT iPHONES.

    And people need to know that, otherwise you continue to get reactions based SOLELY on what happens with “10’s of thousands” of iPhones, which is shortsided and ignorant.

  3. The problem is Apple has too much debt and no new products for the holidays. What they really need is like some kind of new product, something to get people talking about Apple again.

  4. I told you to sell

    Remember? Even Apple can’t weather a post real estate bubble economic recession.

    Yea, now you remember.

    BUT NO!!! You all labeled me a troll and went ahead and bought.

    Well now you can just keep on losing. I’m in cash, spread around under $100,000 in each bank. Some gold bars in the vault.

    My bills are very low every month and I sold my house last week.

    I’m even collecting firewood, storing gas and canned food. You think I’m crazy, but I’ve lived through one of these before.

    Imagine a lot of people out of work.

    Now you know why Bush ran the illegals out of the country.

  5. Perhaps now would be an interesting time to post and updated ranking of market capitalization for MS, Google, Apple, Intel, Dell, HP, etc.? If we gloat when we’re up we need to face the music when we drop…

  6. @ MDN
    “Gee, thanks, Jim, couldn’t you have told us to take half of our AAPL off the table last Wednesday”

    Actually, Jim has been telling viewers to take some profit on AAPL for over a week. You just need to watch Mad Money every day.

    MW: ‘trying’ (times. don’t panic)

  7. Folks, this has nothing to with Apple, whether you’re arguing to buy or to sell the stock. The question you should be asking at this time is “Should I be in the stock market at all?” We are in for some nasty times, folks. It might be a good idea to put some of your money in gold.

  8. “When a site only cheers, and never boos or at least scratches it’s head, that’s when the site isn’t much use.”

    Especially since it’s not an investing site. If you are taking your investing advice from these forums, then you deserve to get hammered. Which, when you think about it makes your comment kind of silly.

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