Why isn’t Apple’s stock price north of $600? It’s the volume, stupid

“Except for a few days in April, if you’d bought Apple (AAPL) anytime after March 12, you’re sitting on a loss right now, based on Thursday’s close of $581.82. And if you’d bought AAPL at its $636 close on April 9, you’re down about 8.6%,” Richard Bloch writes for Seeking Alpha.

“That’s what can happen when volume dries up,” Bloch writes. “On Thursday, Apple traded only 14 million shares. That’s the lowest since February 7 when the stock closed at $468. But even when Apple’s volume is relatively thin, it’s still one of the most liquid stocks on the market.”

Bloch writes, “And Apple does tend to drift around between earnings announcements, especially in the summer. In the last two years, the April to July period has tended to be pretty flat, with more of its gains seen later in the year. That may or may not be a reliable seasonal trend, but in a ‘sell in May and go away’ market psyche, it’s certainly understandable. So for the time being, I suspect that Apple will be subject to the whims of a lot of high-frequency trading algorithms. They can certainly send the company’s market cap up or down by $5 billion in just a few hours, or even a few minutes.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]

18 Comments

    1. What an unadulterated crock, breeze. It is George Soros’s fault that *anything* negative is happening in the world . . . including the recent pull-back of AAPL. (How’s that for equaling your assertion? No facts, just BS.)

        1. What nonsense. I hate leftists as they try to destroy this country, they certainly aren’t investing in a good capitalist company like Apple. If they weren’t too financially illiterate to invest they don’t have any money anyway!

    2. It’s always great to see almost any and every MDN story devolve into a political trash-fest.

      But then again, I’m a “commie pinko fag.”

  1. Funny, I wrote the following, yesterday, at the Fortune blog about Apple:

    “This trading malaise since the pop also seems to correspond to lower than average volume.

    8/27/2010 – $242
    1/14/2011 – $348 UP 44% in 4 months
    6/17/2011 – $315 sideways 5 months
    7/26/2011 – $403 UP 28% in 1 month
    11/25/2011 – $363 sideways 4 months
    4/9/2012 – $636 UP 75% in 4 months

    I’m not a technician, so I don’t know what to make of price swings like this, other than to say Apple has a tendency to burst up in 1 to 4 months, and then trade languidly for 4 or 5 months, before doing it again. Is this due to sector rotation where momentum traders pile in and then pile out? Dunno. Not much data, so not well correlated to product launches or seasons. The only thing I can conclude is that I wouldn’t be surprised if Apple trades in this range until August, when the drumbeats for the new iPhone start to beat. Of course, I’d like to be wrong!”

    1. I am feeling no such lack of enthusiasm, but it is odd that the reports can happen and all goes, like gangbusters, on and on, then this quarter it goes, then off and off…. who knows what will happen, but i am in for the long haul and have enjoyed the ride since 41 bucks a share, so i have a long way to go before i hurt.

  2. I own 200 shares and get sea sick from all the ups and downs.

    I think another thing to consider is that a lot of people own all sorts of funds in their retirement accounts (ETFs, targeted date plans, index funds. etc) that all have a large number of Apple shares. Since Apple has grown so big, these funds own a LOT of shares. My point is that on any day the market moves a lot, Apple has to mirror these moves to a certain degree. This is a headwind that makes it hard to move up when the market is going down, and a tailwind that pushes it up even higher on up days.

    This doesn’t account for all the volatility, but but still be factored into moves such as today.

    My 2 cents worth.

  3. Ever since the dividend was announced, it killed the stock momentum. The dividend will eventually attract the wrong investor, the ones who want a salary rather than take risk. It was everything Jobs was against and one of the reasons why Apple fell apart in the 1990s.

  4. And Apple does tend to drift around between earnings announcements

    This has NOTHING to do with actual APPLE at all! Apple just keeps making better devices. People just keep adoring them and buying MORE of them. That’s a dead simple formula for raising your stock value.

    All the bouncy bouncy is due to plain old screwed up human mentality.

  5. Buy and hold is history.Everybody knows it isn’t going strait up. Whenever AAPL makes a big move all the institutional investors have their fingers hovering over the sell button. Whoever gets out at the right time makes the most money. These swings don’t bother me at all anymore. I shouldn’t say that .It bothers me that I’m not making 50 to 75 thousand dollars every time they happen.

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