Apple stock continues drop; market cap falls below $400 billion; value crown ceded back to Exxon Mobil

“Apple’s market cap — a measure of the value of a company — is now below $400 billion,” Don Reisinger reports for CNET. “The decline came this morning after Apple’s shares fell 2 percent to land at $422.25. At that share price, Apple’s market cap is now $396.5 billion. The company’s valuation hasn’t been that low since late 2011.”

“Apple’s share price has been on a steady decline over the last several months. In the last six months alone, the company’s stock price has gone down 37.5 percent,” Reisinger reports. “Its 52-week high of $705.07 seems like a distant memory at this point.”

Reisinger reports, “In an interview with CNBC’s Squawk Box this morning, famed investor Warren Buffett said that CEOs ‘can’t run a business to push the stock price up on a daily basis,’ adding that his own company, Berkshire Hathaway, ‘has gone down 50 percent four times in its history… When that happens, if you’ve got money you buy it.'”

Read more in the full article here.

MacDailyNews Note: At $395.75 billion, Apple (AAPL) is no longer the world’s most valuable company. Exxon Mobil, currently worth $400.32 billion, has retaken the crown.

Related articles:
Gundlach: Apple’s 40% plunge has singlehandedly debunked the efficient markets hypothesis – March 4, 2013
Has Tim Cook become a liability at Apple? – March 4, 2013
Apple’s all-time record quarterly earnings disappoint – January 23, 2013
After posting new all-time record revenue, Apple shares collapse in after-hours trading – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013
Bond guru Gundlach slaps $425 price target on Apple Inc. stock – November 9, 2012


  1. I’m still thinking about $704 last September and lost opportunities. I just get this horrible feeling it’ll drop to half of what it was for really what amounts to no good reason except arbitrary market malicious capriciousness. No kind act or huge success goes unpunished. Going long, Spock…

      1. GM, do us all a big favor please and let us know precisely when the bottom of the market arrives. I have no doubt you’ll have access to that information, much as you knew when the peak had arrived. What I wouldn’t give for 10% of your prescience.

        1. Unlike September when it was easy to see that AAPL had skyrocketed beyond belief, finding the bottom is a bit more difficult. In September even non-investors knew that Apple was at its all time high. Selling some or all was just common sense. All you had to do was look at the chart. I don’t care where the bottom is because I have been out of AAPL since September. That money has been working for me in other places. And doing quite nicely thank you. But I will get back into AAPL at some point. But not just yet. I think it has a ways to go down still. I will try to make certain as possible that it’s making a steady move up before I will reenter. Of course that’s never a guarantee now is it? But remember, you don’t have to make the first 10% of a stock nor the last 10%. But you do have to learn to take your profit when it is sitting in front of you. Otherwise you maybe down $285 per share.

  2. Ok so Apple is on a “downswing” (market cap 394B right now), it happens when you have lots of bad beats in a row…but what on earth has google done to be on an upswing?

    At this pace Google is soon worth over 300B as well (271B right now)..that’s a major turn around compared to Apple just say 6 months ago.

    Elect Wozzie as chairman of the Apple board *now* =)

  3. AAPL has never really behaved logically. The run-up was an emotional get-aboard-before-it’s-too-late episode of mass hysteria. The run-down is ditto. I expect we’ll see 350 before 500, unless Apple gets its next gotta-have-it out the door before this summer.

  4. I recall getting laughed at and ridiculed here at MDN back in September at the mere mention that I was stopped out of AAPL. Yet, reading all the comments over the past few months only proves three things:

    1. It appears very few people holding AAPL use protective stops.
    2. It appears very few people holding AAPL had an exit strategy to protect/preserve their capital when AAPL sat down for a hair cut.
    3. Greed, Fear, and Hope are still alive and well.

    I’ve also stated previously that I was staying away from AAPL and the market because the market appears to be putting in a top. With bullishness and optimism about the stock market getting close to 2007 levels (and we all know what happened after that), the risk outweighs the reward of investing in stocks.

    In the meantime, I’m sitting it out waiting for the real show to begin.

  5. Exxon vs. Apple

    Which of these companies represents a new growing technology and which an archaic technology (fossil fuels) that is bound to fade away? Which one is rewarded and which punished? So much for the self-correcting inerrancy of free markets.

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