Apple stock’s worst days are finally gone

“Life has proven time and time again that ‘all good things come to an end.’ Apple (AAPL), which has suffered a 45% decline since reaching an all-time high of $705, is no exception,” Richard Saintvilus writes for TheStreet. “That said, as an Apple shareholder and an unabashed ‘fan-boy,’ I can say (as objectively as I can) that this degree of ‘over-correction,’ which suggests the company was spiraling down BlackBerry’s path towards irrelevance, was irrational, if not complete nonsense.”

“Investors who constantly cite Apple’s profitability as cause for the company’s decline should also keep this argument in the context of many peers that would kill for Apple’s level of profitability,- even on the low end,” Saintvilus writes. “While Samsung wins in volume, ask its executives if they wouldn’t love to switch places with Apple. If you understand anything about business, their responses should be predictable. Along similar lines, investors should be encouraged that part of Apple’s softer margins this quarter was (in part) due to an increase in research and development spending.”

Saintvilus writes, “Now, given that the stock has bounced up almost 15% to $442.78 (Tuesday’s close) since reaching $385, I’ll be the first to say it — Apple has bottomed. With a weak third-quarter already expected, investors have to feel good that the worst is over.”

Read more in the full article here.

17 Comments

  1. Now it’s dropping again. It spiked because of that Russian guy buying stock. But reality sets in and it’ll correct itself. There’s going to be a general lull with Apple until fall because of no new products. But, the stock may spike right after the WWDC. If the conference sucks and people’s initial reaction is a whole lot of suck going on there… who knows how much it’ll crash. But Apple has no hardware coming out until fall.

  2. I’ve come to the conclusion that I am actually the one controlling Apple’s stock price. Who knew? It went below $400 and I sold. It shot up immediately up to $440 within days. I bought back in yesterday believing the worst was over, and it’s back down. I’m convinced now, it’s me! Sorry guys!

    1. Average human daytraders are being played as suckers. This isn’t a human friendly stock market. The vultures and leeches are out in force.

      Instead, invest LONG TERM and let the rabble get fleeced in the short term.

      1. Wonder what would happen if I only sold half? Total confusion!

        I think now I have to hold it a year once I’ve bought it or I get hit with some sort of worse tax. Forgot all the rules. It’s not considered a Long Term investment or something like that?

        1. If the price dropped and you lost money, then you may be able to sell it and realize your loss for tax purposes. There are lots of rules about gains and losses, though. So you should talk to someone with tax law experience.

          Most people not naturally good at investing in equities. Basic human nature tends to push you to investing behaviors that reduce performance, such as sell low and buy high. No one is completely immune from those tendencies, but you can train yourself to do better. You might want to consider scheduled investing or investments in no-load mutual funds as alternatives to reduce your direct involvement in day-to-day investment decisions. Over the long term, you will likely fare better that way.

  3. I’ll be the first to say it — Apple has bottomed.

    Actually, AAPL has bottomed, in price. Shoving other connotations of ‘bottomed’ out of my mind… I can’t help but envision gangs of insipid, inebriated vampires lapping up Apple’s blood from a trough called DEBT. Shoving that horror scene out of my mind…

    Now Apple the company can get back to business while the TechTard analcysts gorge on the fruits of their stock manipulation. Newbies: This isn’t capitalism. It’s parasitism.

    1. “I’ll be the first to say it — Apple has bottomed.”

      This is complete bullshit!  I said that Apple has bottomed several times in recent months.

  4. I’m expecting AAPL to go down a bit just because early May tends to be a bad time for the stocks in general. I suggest not buying or selling any stocks right now, keep an eye open for buying opportunities later in the month, and wait until a stock is doing awesome to sell in a few months or years from now.

  5. well, it was happened because apple and other rich people bought it back. but it is too early to make a decision whether APPL would be finally out of a worst situation. we have to wait for three months to judge at least.

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