Stock slide could cost Apple its market value crown

“Tuesday is proving to be another brutal day for Apple on Wall Street,” John Paczkowski reports for AllThingsD.

“The company’s shares, which briefly slipped below $500 on Monday, continued their downward slide Tuesday, drifting below that mark once again,” Paczkowski reports. “They touched $483.80 in early morning trading, their lowest point in about nine months.”

Paczkowski reports, “That’s a long way from the all-time high of $702.10 they hit last September. If Apple’s stock continues along this downward trajectory, the company may soon cede its title of world’s largest company by market cap to Exxon Mobil, which it surpassed about a year ago.”

Read more in the full article here.

MacDailyNews Note: Current market values:

Apple Inc. (AAPL) – $457.10 billion
Exxon Mobil (XOM) – $408.20 billion

Related article:
Apple shares hit new all-time intraday high; Apple passes Exxon as world’s most valuable company – January 25, 2012

40 Comments

        1. It’s the institutions and hedge funds (that need to have the stock pried away by the retail customers) that control and manipulate the options to the point of reckless abuse.

      1. +1. Investing does not mean that you always think that a stock or company’s value is going up. Why would that be? Everyone and everything does not succeed in life. It’s not possible. Of course not. You invest based on the information that you can gather before hand. Thus, sometimes you invest believing a company is going down and sometimes you think a company will go up. It’s just common sense. It’s certainly not evil! But Jersey Trader is correct, there were rules to govern things in years past. Those rules need to be reinstated.

    1. That’s ridiculous. Why should selling short be illegal?

      If someone believes a stock is undervalued, they buy long, keep, and sell to make money.

      If someone believes that a stock is OVER-valued, why shouldn’t they be able to use that belief to make money too?

      (Note, I have never shorted. I have thought about it once or twice, but never done it, since the theoretical loss is infinite.)

      1. Stock market should only be that you sell the stock that you really own. If you get the price what you want then you sell your stock. If not then you keep it or lower the price. Now someone who does not own the stock can set the price for the stock. It should not matter what some outsider thinks or believes that the share price should be. The price should always be set between seller and buyer. Nothing else. I think that is called capitalism and the shorting thing is called casino or something.

  1. When the contributors to this site finally get over their emotional, irrational attachment to Apple and its great gadgets and come to grips with what I’ve been saying for the past month and more, they will come to realize that everything I have said is dead center on target. Blast away at me, but this company is “Cooked” and until it gets reorganized, AAPL will continue to fall. One more time – the superior quality of its products, its cash horde, its sales records, its “smash the street earnings,” etc., etc., DO NOT MATTER. Apple has been overtaken by the competition with their inferior, features laden, cheaper products. Apple is clueless as to what to do about it. It will take a new team to work out of the mess. Even then, the halcyon days of $700 or even $600 are but a distant memory.

    1. You Sir are delusional. Nobody has overtaken Apple with inferior, features laden, cheaper products. Those products have always been there. Before Android they were called Symbian products. Before Android and Linux they were called “Wintel” products. What Apple has done past almost two decades is that they have introduced 500 million people to quality products and they will continue to do so. While they do that the revenue stream will be much much stronger. Apple will get at least another 300 million new customers this year alone.

    2. Dear PP….
      So you are suggesting that Apple be run like Dell or HP???
      Hmmm, maybe like Amazon and lose money in such a way that the stock soars before the crash???

      Speculators should sell and sell Apple quick. Investors should buy and buy quickly.

      Just a thought.

    3. Yes, I have read your redundant diatribe and your suggestions, I’ve heard it all before, actually I’ve heard one CEO of another company suggest that Apple close up shop and give the money back to the investors.

      It does not phase me (and yes I am a stock holder and not the least concerned about this dip) because Apple’s reason of being is to make as you put it “great gadgets” and not to generate a certain value on the stock market.

      Apple has always been overtaken by the competition with their inferior feature laden cheaper products, just look at Windows.

      Where I disagree with you is that it is not a mess, Apple will continue to make great product regardless of market share and stock value. Those are very peripheral values for the company, making insanely great products is at it’s core.

      1. You miss the point, Road Warrior. Investors in AAPL certainly do want Apple to continue to make “insanely great products” but first, the perception – growing every day – that doing so will not sustain the future of Apple, has got to be addressed. Mr. Cook hasn’t a clue of how to do that. He just sits on the company’s policy of not commenting (except to apologize for blunders or signal upcoming new versions thus killing off the sale of current versions) and blindly believes everything will work out. Well, it won’t! Besides great products, AAPL investors want a future. Under Cook & Co., there isn’t any.

        I wish I was wrong but every day I’m proven right. iCal this.

        1. ppeterson is completely right. When the iphone 5 came out with a longer screen and no other real features, I knew something was wrong. A completely lazy move by Apple. A longer screen? WTF?

          And the ipod nano went front being a potential watch to a longer useless music player? WTF?

          Some big mistakes happening and no real innovation taking place. My mistake was recently picking up an android tablet and seeing the light. Sure, they copied Apple a lot to develop their UI, but they now offer a hell of a lot more features. Android is fun! You guys should give it a try rather than blindly denying what is in front of your face.

        2. “Investors in AAPL certainly do want Apple to continue to make “insanely great products” but first, the perception – growing every day – that doing so will not sustain the future of Apple, has got to be addressed. Mr. Cook hasn’t a clue of how to do that.”

          WTF are you talking about? Apple makes profit annually over 40B and is growing faster than any other big company. This all has happened under Tim Cooks supervision. He has the same team of people. Steve Jobs did not do everything by himself.

        3. I am not quite sure exactly what you mean by “the perception-growing every day – that doing so will not sustain the future of Apple, has got to be addressed”. Exponential growth, while useful at times is not a sustainable position, although that it what a lot of economists hope for. I give much more credence to sustained growth when dealing with “oikos” (a root word for economy and ecology). Consider a tree’s growth over a year. Right now (winter in the northern hemisphere) a typical deciduous tree is showing no growth. You could even say there is negative growth as the tree may lose some branches. Come spring however, there will be a period of expansion as the leaves burst out and then a busy period over the summer followed by the decay of the leaves themselves.

          That is being simplistic but trying to address that to those who do not wish to see is often futile. Apple has always been a secretive company and Tim Cook has apologized for company blunders just as Steve Jobs has. I don’t buy that Tim Cook blindly believes everything will work out simply because not seeing something doesn’t mean it’s not there. For me insanely great products are and have always been the future and frankly other Apple CEOs have given me greater cause for concern than Tim Cook.

          There is a future for Apple with Tim Cook as CEO, you don’t need to iCal it, just check here tomorrow and see if he is CEO. You might believe that future will lead Apple straight into the ground but that still is a future. I on the other hand believe that Apple’s future is sustainable and bright, and like usual there will be some adjustments along the way. Apple stock has taken a beating before and will likely do so again but like a tree, over time Apple continues to grow and those inclined, like me are more than happy to partake in the fruits of their labor.

  2. There is a salutary lesson in all this for those who manage large private corporations. STAY PRIVATE. Run your business as you see fit for the benefit of the company and its workforce; definitely not for the benefit of stock markets and hedge funds. Concentrate on your business free of all the PLC distractions.

  3. A big year for Apple. Arguably the most important. For the past decade it seems Apple releases something “revolutionary” every 3 years. We need the revolution. The market drop is a reflection of the doubt people now have that Apple is going to release anything this year but upgrades to current products. Apple is at a critical juncture. Will they keep being innovators or have they matured. Was everything we witnessed that was so great for the past 10 years just Steve Jobs ability to unify a team? Can Apple “Tim Cook” be anything but production guru’s with no vision? I think Tim’s reorgs show his concern about where Apple is going right now. Whether we like it or not Android and in particular Samsung have closed the gap with Apple quicker than anyone originally thought. Litigation and moving part vendors won’t be enough to stave the threat. Again enough with the “production”, the court cases, lets get back to “wowing” again. Steve could do that. Now can Apple?

    1. I’m right here dipshit. Yes, as of market close it’s only worth 20x Dell…. Only because Dell is up 7.6% on the rumor that all money is being returned to shareholders. The fact is Dell still makes third rate commodities. And Apple can’t build enough products to fill the insatiable demand for it’s products.

  4. Lesson for Tim: change the information policy. Work against negative rumors. Put a monthly video message on your website. Do “thoughts on” various topics on your website on a regular basis. Thoughts on pro users, thoughts on share price, thoughts on Pages, Numbers, Logic. Talk to your customers. Answer questions in public – real questions, not like in an official interview. Realize that there are soft skills called psychology and others. Get used to them. Do not tell only numbers in your presentation of how many apps are sold etc. As the stock market is half psychology you cannot ignore it as you permanently do. The garage days are over, Tim. If you don’t want it – go private again. One day the cash will be equal the market value so it’s easy. It will happen if you stay silent all the time.

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