Apple stock has worst day in nearly 4 years – and no firm reason why

“Shares of Apple (AAPL) had their worst day in nearly four years today as the stock dropped more than six percent and lost around $40 billion in market cap. The last time AAPL had a larger one-day decline was on 12/17/08,” Bespoke Investment Group writes for Seeking Alpha. “It has surely been a painful few days for AAPL longs.”

“At the same time, there have been a growing number of people betting against AAPL that may finally feel vindicated after trying to call the top in the stock for the last four years,” Bespoke writes. “As of the most recent reporting period (11/15), AAPL’s short interest as a percentage of float rose from 1.8% to 2.3%. This was the largest two-week increase since mid-February 2010, and it’s the highest short interest as a percent of float since April 2009.”

Read more in the full article here.

Related articles:
4 more reasons Apple stock got clobbered Wednesday – December 5, 2012
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

48 Comments

  1. There was no firm, concrete, definite reason why Apple’s shares grew that fast until September (except for general reasons like supposed growth prospects and some dividends, better than average for big companies P/E ratio).

    So it was “bulls'” time mostly. But today is just “bears'” day, no point in attempts to find any specific reason for the price drop.

    1. So basically, you’re saying that the stock market is merely a casino with no true way of valuing companies. I think you’re right. Trying to figure out why share prices go up or down is really a waste of time. I’m not being sarcastic. I think analysts should be fired because they’re not capable of getting anything right and Apple analysts are the worst of the bunch.

      1. Sure they’re casinos. But you knew that, right? Except the traders have to supply their own booze, and they’re psychiatric cases susceptible to information overload, gullibility, and panic attacks. Shadowy investors in the stratosphere developed secret metrics for this and prefer them over objective valuations like P&L statements or P/E ratios. They take the cognitive temperature of the market and if it’s running a fever, they crouch, waiting for an opportunity to pounce.

    1. I think that has everything to do with it. But I dont believe the increase is 15%, thankfully more like 5. Which is still a substantial one third relative increase

  2. Blessed are my clueless sheep.

    Don’t worry I fix everything like I did the election.

    Communist Paradise is awaiting you all, like in my homeland Kenya.

    FORWARD COMRADS!

    1. In the above statement, you epitomize almost everything that is wrong with the thinking of people sharing your political slant.

      Get an education, and for shit’s sake, get over the fact that the majority of American’s saw through Mitten’s plastic smile.

        1. so, you don’t believe in one-vote-for-one-man either…

          hmm! the worst day in four years. tell me, did Apple stock start its downward spiral post-Bush – or, in other words, with the ascension of 0bama?

          judging by your collective confoundment, this doesn’t typify the pattern of Apple stock for the past decade or so.

          1. Not sure what you mean by your “one vote for man” comment, as Mittens lost the popular vote by over 3.5 million.

            Also, remember that at this time 4 years ago, we were still under the rule of the Shrub. Obama had not been sworn in yet. The country had been spiraling into economic disaster for the previous year or so thanks almost entirely to G-Dub’s complete negligence and utter incompetence.

            Like I said to your brother above, get an education.

            1. Your very hero did that.

              At President Clinton’s direction, no fewer than 10 federal agencies issued a chilling ultimatum to banks and mortgage lenders to ease credit for lower-income minorities or face investigations for lending discrimination and suffer the related adverse publicity. They also were threatened with denial of access to the all-important secondary mortgage market and stiff fines, along with other penalties.

              The threat was codified in a 20-page “Policy Statement on Discrimination in Lending” and entered into the Federal Register on April 15, 1994, by the Interagency Task Force on Fair Lending. Clinton set up the little-known body to coordinate an unprecedented crackdown on alleged bank redlining.
              The edict — completely overlooked by the Financial Crisis Inquiry Commission and the mainstream media — was signed by then-HUD Secretary Henry Cisneros, Attorney General Janet Reno, Comptroller of the Currency Eugene Ludwig and Federal Reserve Chairman Alan Greenspan, along with the heads of six other financial regulatory agencies.

              “The agencies will not tolerate lending discrimination in any form,” the document warned financial institutions.
              So this is where it all started. In 1994. When the government pressured lenders to qualify the unqualified. To put people into houses they couldn’t afford. Or else.

            2. And what, precisely did Bush do to correct the problem before it snowballed? Nothing, absolutely nothing. Hence, the negligence and incompetence statement above.

              Additionally, Clinton was also guilty of repealing the Glass-Stegall Act as one of his last acts in office. This helped set the stage via financial deregulation for the disaster we would feel 8 years later.

              Again though, the Bush Administrartion did nothing to reverse that course, despite the clear and obvious warning signs, and I still hold that he deserves the Lion’s share of the blame.

              It’s one thing to start a fire, it’s another thing entirely to be aware of the fire, but ignore it while it guts your neighbors’ houses.

      1. Well at least Mitt doesn’t have a mother out there that claims her son was murdered execution style shortly after the election, because he used to fuck Obama in a Chicago Gay Club.

        1. Reaching a little there, aren’t you? No chance at all that this isn’t some sensationalist media-whoring?

          C’mon man… Had someone made this accusation against a GOP-er and brought it up completely out of context, you’d be calling shenanigans right now.

          Having said that, I think the balance sheet of shitty inhuman acts is much longer for Romney than for Obama.

  3. That’s the shorts cashing in, people. They drove the stock down with their propaganda, bought it cheap, rode it up and dumped. The stock market is rigged shell game.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.