4 more reasons Apple stock got clobbered Wednesday

“With Apple’s (AAPL) shares off nearly 5% Wednesday, there was no shortage of theories about what was driving all the selling,” Philip Elmer-DeWitt reports for Fortune.

“We highlighted one — Apple’s failure to issue a special dividend,” P.E.D. reports. “In a note to clients a few hours later, Piper Jaffray’s Gene Munster addressed four more.”

• Digitimes Article Appears To Be Misinterpreted – [iPhone component orders are sequential, not an issue]
•Technicals Suggest Downside Largely Priced In
• Margin Requirements Being Raised
• China Mobile to Carry Nokia Lumia

P.E.D. reports, “Munster is sticking with his price target of $900 a share.”

Read more in the full article here.

Related articles:
Apple execs race to cash dividends before reaching U.S. fiscal cliff, Obama tax hikes – December 5, 2012
Apple’s stock swoon blamed on AAPL margin requirement increase – December 5, 2012
Apple stock takes hit; company’s refusal to issue special dividend ahead of looming U.S. tax hikes to blame? – December 5, 2012
Nokia secures deal to sell first Windows Phone 8 handset in China – December 5, 2012

31 Comments

    1. As a lemming, I resent the association. We lemmings are a peaceᵥing group who only want the best for our children. Yet, you assume we all jump off the cliff for no good reason. Well, I’m here to tell you there is a reason, a darned good one too. I just can’t remember it right now. If, you’ll excuse me, I have a jump to make.

          1. I love rebuses but that notion totally escaped me. Good grief.

            Next question: How is it generated? I simply copied it in my question above but I’m sure there’s an easier way to find it on the keyboard.

            1. I took a SWAG on that one. I may be totally off.
              The “v” may have simply been a smaller point size?
              Hmmm, I can generate that in a word processing program, but it doesn’t paste into this feedback box. Interesting…
              Wait, how did you get that small “v” to work? Did it not show up in the box as you entered, but upon posting it then worked?. I’ll try that: –> Peaceving. (?)

            2. @drewyer, sorry for posting late. I got that simply by cut and paste from the original posting. That’s why I wanted to know how the original got generated.

    1. I guess you must be counting on a Q1 Apple rally. Good luck with that. Most people can’t afford to keep buying into a falling stock because it’s too risky. It’s your money to throw away. I say that because the market can’t be trusted. I have no doubt Apple will earn plenty this quarter, but that seems to have nothing to do with Apple’s near-term share price. I remember 2008-2009 too clearly when Apple share price was halved for somewhat vague reasons. Those were some scary times. It happened then and it can happen again. Just don’t buy the stock on margin.

      I can only say that when Apple shareholders have reason to worry about falling shares and Amazon shareholders don’t, it’s clearly no longer a market I understand or trust.

      1. “I remember 2008-2009 too clearly when Apple share price was halved for somewhat vague reasons.”

        How about a major recession and a whole market that got obliterated, Bear-Stearns going broke, etc?

  1. It might have something to do with the fact that nobody knows what the Capital Gains tax will be in three weeks – and Apple investors have lots of capital gains. And also, nobody knows what the dividend tax rate will be in three weeks. But they are likely to be tripled from current rates if the Administration gets its way, which it will. It might also have to do with the fact that the current economy is near collapse, with the Federal Government consuming near two trillion per year more than it takes in – and it wants a lot more from the taxpayers. A major Depression will cut into iPad and iPhone sales. Finally, the current Administration is at war with the successful including successful companies and their shareholders. Success is not fair. Other than these minor technicalities, the Apple stock drop doesn’t make sense.

    1. Kent Nailed it. Anyone who voted OBAMA can’t complain. It was probably Al Gore cashing in on all the free stock he gets. For Nothing. Buckle up, it’s going to be shared misery. Obama supporters didn’t win a thing, they just don’t realize what they lost… As for market share, Googles stock keeps going up, and until Apple goes head to head in some areas, like search, and the advertising that goes with it, get used to seeing the market share slip away.. What’s keeping Google from releasing a full blown OS to close their ecosystem? FIGHT BACK.

      1. actually, $900 will never happen. don’t you realize it? wake up. apple is over. possibly, it will drop below $500 before next year. who will be predictable? you will know.

        1. Edward, crawl back into your cesspool, your mother needs you there. You might even find your best friend Gupta swimming around in it. Maybe he could give you lessons? We really don’t need you spreading your piles of fecal material here. Why can’t you for the life of me understand this? D========)))))

  2. A Reuters article on Monday reported the IRS issued 159 pages of new Obamacare Rules. In those rules is a 3.8% surtax on investment income. Granted its for those with income over $200,000 (single)/$250,000 (married). Could it be people who’ve seen their AAPL stock rise from $30 a share to over $600 are selling now to avoid higher capital gains taxes next year?

    1. Good theory. Unfortunately for your theory, this sell-off is institutional and not the retail public as you indicated. Perhaps some of the large pension funds that hold a lot of AAPL like California Teachers pension etc are behind it. There may be some tax implications they have but no news yet.

  3. I think it’s just profit-taking ahead of the possible fiscal cliff and increase in capital gains taxes. As one of the best performing stocks of the past few years, it would naturally have some sell-offs.

    Now watch for a good buying opportunity in January.

  4. Worsening of customer service (stores AND phone).
    Worsening of tech support (stores AND phone).
    No innovation – no excitement – in years.
    Reasons for their products’ premium pricing is vanishing.
    Dropping servers.
    Dropping power computing.
    Dropping enterprise support.
    Dropping Pro apps.
    Kowtowing to volatile teen social networks, and trying to pass it off as the “innovation” they are missing.
    Terrible quality control and decisions (not just the Map app, but there has been a flood of hardware and software issues).

    [I’ll stop here, but there are hundreds more reasons.]

    1. Clueless? You must think that the market just finally put these myths together and jumped out? The market is largely driven by fear and greed. The question is “Who is fearful and what are they fearing?” So far, no one is saying.

  5. Don’t worry comrads. Soon it will be all over and you will enjoy my communist paradise, where you don’t have to work and just collect your welfare check and food stamps, you even get my famous Obamaphone.

    I am the most expert president in US history. No one knows I use special Kenyan Woodoo to work my magic. The way the magic works is that is looks first like crap, but then it turns into paradise.

    FORWARD!

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