Apple stock at brink of correction after consecutive 2% declines

“Apple Inc. fell for a fifth day, posting its first consecutive 2 percent declines since 2013 and pushing shares to the brink of a 10 percent correction,” Joseph Ciolli, Callie Bost, and Lu Wang report for Bloomberg. “The slide comes amid a rout in China’s market that is occurring two weeks before the company reports earnings.”

“The iPhone maker’s stock decreased 2 percent to $120.07, bringing its five-day loss to 5.2 percent — a drop that wiped out $38 billion of market value,” Ciolli, Bost, and Wang report. “Since reaching its all-time high of $133 on Feb. 23, the stock is down 9.7 percent, leaving it about 40 cents away from a correction.”

“Analysts predict Apple earned $1.79 a share in the three months ended June 30, compared with $1.28 a year earlier, according to data compiled by Bloomberg,” Ciolli, Bost, and Wang report. “The company has beaten estimates every quarter since 2012.”

“In addition to the correction risk, Apple shares are in danger of breaching another chart level that technical analysts monitor, its 200-day moving average. That price is $118.72, a little over 1 percent below its Thursday close,” Ciolli, Bost, and Wang report. “Apple has spent 455 days above the 200-day threshold. Speculators in Apple options have rushed into near-term bearish bets amid the selloff.”

Read more in the full article here.

MacDailyNews Take: Correct away, AAPL!


    1. That’s frequently true, but this time I think not. Analysts have been touting China as Apple’s breadbasket, so any economic upset in China is bound to affect AAPL.

    2. Two words here, Tim Cook.

      Tim Cook has more failures than Ballmer.

      Apple just needs new leadership. Affer a run of fiascos, failed products, shoddy software updates, mediocre services, and personal politics over business decisions, Apple’s reputation has been damaged.

      Simply put, market has lost confidence in Apple leadership.

  1. “correction”? Who decides the true value? I detest those terms as I do “baked in” or “factored in”. These self appointed “analysts” who are shamelessly wrong in most of their predictions and uneducated guesses talk of “correction”! Bah!

    1. Whenever I read a Wall $treet punditry piece about a “correction” I immediately think of a guy in a pinstripe suit submitting to a dom mistress in a leather outfit and a whip.

      Which makes me wonder: couldn’t they have thought of a better word?

      Oh, that’s right – it IS Wall $treet we’re talking about. Where they sell hype, gloom and doom in order to whipsaw the ordinary investor. Not that you have to believe their noise and BS. I don’t. I tune it out. All the thesis of the article is technical analysis voodoo. And I dare you to name a great investor who is a technical investor, not one who looks at a publicly traded company based on fundamentals.

      If you want to make money investing, and I am, do the following:

      1. Tune out the noise, FUD and BS you get from Bloomberg, Forbes, Business Insider, et al.
      2. Don’t invest for the short term. It’s a loser’s game.
      3. NEVER take stock in technical analysis. Ever. It’s garbage.
      4. Find a great company that’s run by smart, ethical people, one that is leading its industry, and one that will be around 20-40 years from now.
      5. If the company has a track record in which its cash flow is growing, debt is minimal or nonexistent, you likely have a winner.
      6. Even better, if the company pays a dividend, that can be magical IN THE LONG RUN.
      7. Re-read #6. Invest in the company’s stock.
      8. Per #6 and 7, if the company pays a dividend, REINVEST THE DIVIDENDS.

      If you do, over time, those measly looking dividends will introduce you to the 9th Wonder of the World: COMPOUNDING. When that happens, over time, the dividends accumulate, and those dividends when reinvested BUY MORE SHARES OF STOCK for no money out of your pocket. And over time, compounding will give you more and more shares of stock.

      While stock prices go up and down, OVER TIME, and those are two important words, as the company’s cash and earnings grow, EVENTUALLY, the stock price will go up in commensurate fashion. Add to that those reinvested dividends, and you will generate a small fortune. OVER TIME.

      Rinse and repeat.

      This means buying stock and holding on to it for many years. When Wall $treet does something stupid, like freak out over Greece or China (because that’s what they do), they’re actually handing you an opportunity to buy more shares of stock at a discount. When that happens, add to your position.

      Everything else is just noise.

      That is all.

  2. Icahn must be shaking his head considering how he thinks Apple’s share price should be nearly twice what it is now. He dumped Netflix and that stock’s gains are simply beating Apple to a pulp. But then again, what stock isn’t? Microsoft just laid off a bunch of pawns and is going to take a nearly $8 billion charge and it’s like nothing happened at all which I find somewhat odd. Apple isn’t the only tech company that depends upon China for sales, but only Apple is being greatly affected. At least I have faith Apple’s share price will climb into earnings but even if it doesn’t I’ll still get my dividends. I’m sure it could be a lot worse, so I shouldn’t complain.

    1. Greatly affected? A drop of not even 10%?

      People simply don’t like when AAPL drops, even if it is even less than 10%. Because it is a largest company on the planet, such drop shaves off tens of billions of value in stocks, but in the end, it is still less than 10% and not such a massive move.

  3. A 5% fluctuation of any share, at any time, is no big deal. Fluctuations can be due to anything, many things, or nothing. Just look at any share’s 52 week high and low for the previous year. Apple’s 52 week low was $92.57. Yawn.

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