Why Apple’s share price rallied to reclaim a key threshold

“Shares of Apple enjoyed solid gains today, rising more than $15, or nearly 4%, by the afternoon following four days of relentless selling that saw the Mac maker shed nearly $29 since last Tuesday,” Evan Niu writes for The Motley Fool. “That four-day streak of losses put the company down over 6%, representing a market cap decline of an incredible $27 billion.”

“Apple’s valuation fell below the important threshold of $400 billion in the process, with yesterday’s low of $419 valuing the company at $393 billion,” Niu writes. “Shares have now reclaimed that threshold. What drove the rally?”

Niu writes, “Two Street analysts appeared on CNBC this morning to discuss Apple’s prospects, which may have fed some bulls. BGC Financial analyst Collin Gillis, who rates Apple a hold, acknowledged that it would seem that the stock is starting to bottom out… Bernstein Research analyst Toni Sacconaghi, who considers Apple a buy and has assigned a $725 price target, was expectedly more bullish than Gillis. Investors widely believe that Apple is preparing to ‘materially’ return more cash, a move that Sacconaghi believes could spark a rally of $40 to $50.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]


  1. I’m sick of this crap.

    Clearly the rise of Apple was due to institutional investors that were in it for the ride up the mountain. When they felt they had reached the top they started selling off Apple, which resulted in a decline of value. There were not enough non-institutional investors out there to buy up the shares being sold off, so the share price declined… a lot.

    Clearly the institutional investors were in it for the money; that’s what they care about. But, when the value started to drop (at their own fault), they started bitterly complaining that Apple isn’t being run properly. That shareholder value is everything and Apple doesn’t value the shareholder sufficiently.

    Apple has always been about providing the best product at the best margins, not market share. What the idiot analysts failed to understand, and continue to misunderstand, is that Apple is about their customers. And their customers are willing to pay for the best. Without those customers there is NO shareholder value.

    1. Yes, I’m with you! Sick n tired of AAPL being driven down by ” institutional buyer/Sellers “.
      I wish we small buyers can group together to form one big institution as Buyers when the stock is really down like right now!!!

      Apple is about products and customer service period first!!!!

      Buying a few more AAPL these days!!!!

      1. There are other stocks out there. Thousands. If you truly believe there is a conspiracy/plot/consorted effort only against AAPL then why invest in it…………………………….? Try other stocks. Try other sectors of the market. Try mutual funds. Tray bonds. Try treasuries. Try US savings bonds. Try passbook savings. Why continue to invest in something that you believe is a hoax? I haven’t been in Apple since September except for puts. I have done just as good with those as i did with calls as it ran up. But of course I don’t believe in conspiracy theories. It’s just the stock market. It’s nothing new. At least try other stocks. You’ll be much happier. And you won’t have to complain all the time. I’ve done well with PCLN. But hey, almost all stocks are doing well. Almost all.

  2. I love the way these bastards err… I mean analysts think that they are actually responsible for any movement of Apple stock. The only reason The price of Apple moved is either because some people have come to their senses and realize that Apple is a great value at these prices or institutional investors are playing with it.

    1. Moreover, a 4% rise remains well within the short term (days) fluctuations of an overly jumpy stock like AAPL.
      How can this be news?

      With these fluctuations averaged out, for the last few months, AAPL has been going down steadily at a rate of 10%/mo.
      One of the things that stands out is a total information blackout from Apple, which is in sharp contrast with the regularity of little events and announcements that we have known for the last few years and that kept AAPL on the burner.

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