What’s driving Apple share prices lower and when will it stop?

“Nigam Arora‘s technical analysis of the Apple stock price suggests it faces a few key days. At one stage Friday it was down at $558, from above $700 in September,” Haydn Shaughnessy writes for Forbes. “How ludicrous is this? Apple is a top performing company with plenty of room to grow. In the mobile space it is normal to count sales in the hundreds of millions. In computing you are big at 30 million units. Contrast with Nokia. At its peak, the Finnish company sold around 450 million phones a year. Mobile represents scale beyond the dreams of computer makers.”

“So Apple has upside – here’s the story on the iPad mini [Analyst: 2 million of those 3 million iPad sold in first weekend were iPad mini units]. And Apple has reinvented enterprise structures to facilitate extraordinary growth at low relative cost,” Shaughnessy writes. “What’s changed is sentiment. In the past what mattered was trader sentiment – that’s why share prices go up and down – but what matters now is pervasive sentiment.”

Shaughnessy writes, “The right way to deal with it – Cook has to up his game and become more of a peer in the community of people building their businesses around Apple.”

Read more in the full article here.

31 Comments

    1. Have you never heard of the old stock market saying “Buy on Rumor. Sell on News.”?

      This has been the rule for Apple (with very few exceptions) for many, many years. It does not matter whether the news is good or bad. The stock goes down on news. It just goes down more on bad news.

  1. duh – markets are emotionally driven, and the majority of tech pundits are busy assessing the barrage of Windows 8 propaganda.

    … and then there’s the long-term storyline: Apple stock price won’t continue to surge until it offers products and services for medium & large enterprise. As it is, Apple has once again set the quality standard and is now watching as imitators steal market share by offering cheaper junk, knowing that the Walmart-ized populace will buy whatever steaming piles of crap Google and Microsoft hand them, as long as the initial purchase price is lower.

  2. There are numerous issues affecting Apple’s share price: 1. Relatively low dividends as a proportion of the share price. 2. Global uncertainty and the potential collapse of consumer sentiment. 3. The patent wars. 4. Apple’s uniqueness. 5. Apple’s size. 6. Android market share. 7. Management changes. 8. Manufacturing constraints. 9. Apple’s ability to continue producing radical market-shaking products (ie: another iPhone or iPad type product. 10. Market manipulation by large investors

    Apple’s profitability is not in question, but its ability to continue growing at historic multiples is. Apple is a growth stock, despite the (small) dividend return, and Apple are charting new territory and that scares conservative investors.

  3. The feeling that Apple is at its highest, the Androïd/Samsung competition grows. That can make you think Apple cannot keep up its privileged high position for ever. Uncertain outcome of the election, the not so good economical state now. etc. Reasons enough to let stock prices fall.

  4. Apple has lost it’s mojo with arbritrary hardware changes like the meaningless addition of Lightning port for iPad 4 and the unreliable software joke that is the new iOS 6 map app. People see this trend and resistance to the new Apple mediocracy is creating resistance.

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