Tech stocks give up gains for the year, but winners like Apple remain

invisibleSHIELD case for iPad“A bruising market selloff this week has wiped out the year’s gains for much of the technology sector, though some big names have managed to stay in the green,” Dan Gallagher reports for MarketWatch.

“The brutal selloff over the past couple of days — sparked by growing worries about the stability of the global economy — has put the market into a tailspin,” Gallagher reports. “The S&P 500 has shed more than 7% of its value since Monday, and the Dow has slumped by more than 700 points — briefly dipping below the 10,000 mark for the first time in three months.”

Gallagher reports, “While the slump has not been triggered by any particular worries coming out of the tech sector, the industry has born the brunt of the selloff… Apple Inc. which has been riding high this year thanks to enthusiasm for its new iPad and — most recently — a positive surge after reporting blowout results for the March quarter, has shed 10% of its value this week.”

“The stock even dipped below the $200 mark during Thursday’s panic, though it came back quickly. But it was still below $240 by Friday afternoon — a level not seen since before its last earnings report on April 21,” Gallagher reports. “‘We believe investors can still be rewarded by buying shares into improving sales of both iPads and the iPhone into calendar year-end,’ wrote Barclays analyst Ben Reitzes in a note to clients on Friday. He added that ‘these new cycles could arguably make Apple more defensive in this environment’ than it was in the second half of 2008, when the market last endured a brutal selloff stemming from the sub-prime mortgage meltdown.”

Gallagher reports, “Reitzes kept his price target on Apple at $315. The stock is now below all but two of the broker price targets on Wall Street. Despite the selloff, Apple remains in positive territory for the year, up more than 12% since the first of January.”

“Other big tech names have fared less well, having missed out on most of the market upswing before the selloff began,” Gallagher reports. “The most notable among these is Google… The stock was already down slightly for the year before that report, and has slumped since. Google shares are now down more than 20% for the year — with Friday’s selloff putting the stock below the $500 mark for the first time in more than six months.”

Full article here.

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4 Comments

  1. Sold all my apple shares a week ago because it was over due for a correction. Bought back in today at 235. This entire Greece thing is over blown. It was just an excuse for the market to correct. When the big boys have bought back in, the news on CNBC will change to “companies now hiring again.” They could have had that headline today, but the institutions that manipulate the financial press haven’t had time yet to buy back in.

  2. I see nothing about Greece that should effect Apple in any way shape or form. Apples business is not centered in or on Greece. To dump more than 45 points is rediculous! Apples performance has more than proven itself period.

  3. @John

    Evidently, you don’t understand the stockmarket… Well, neither do I, but I do know it’s based on emotions and chaos.

    Like the flapping of a butterfly that can cause a hurricane in Mexico… So can a bad economy in Greece have effect on Wall Street.

    Global economy, you gotta love it! 🙁

  4. The market has been down before yet AAPL continues to bring in Record Profits. Just look it up here http://www.apple.com/investor
    So history will repeat itself again when AAPL stock goes Up Up. Before Dec 2010 comes AAPL will be $301 bucks!!!!!
    Great time to Buy AAPL now for people who still does not own it.
    For AAPL owners below $100/share, we have not lost a dime this past week ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />
    Think Profits and Growth!!!!!

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