“If you bought shares of Apple in recent months, you might be feeling pretty frustrated right now: After a stellar rise in the beginning half of the year, Apple’s share price this month dropped below $120 for the first time since February,” Susie Poppick reports for Money. “The price dive began after the company’s third quarter earnings report showed iPhone sales of 47.5 million, missing analysts’ expectations for 48.8 million. While that might seem like a minor miss for a business sitting on more than $200 billion in cash, it shows just how high hopes have gotten for what’s already the world’s most valuable company.”
“‘Investors expect Apple to keep finding new ways to move the needle, but that needle keeps getting bigger and harder to move,’ says Becker Capital Management president Pat Becker Jr., who invests in Apple through Becker’s value equity fund,” Poppick reports. “Still, any bearishness about Apple today must be put in perspective: After all, the Cupertino, California-based company has had a stellar year—even after the recent correction—with a share price 20% higher than it was a year ago.”
Poppick reports, “‘Nobody should be buying Apple expecting it to double in the next year,’ says Villere Balanced Fund co-portfolio manager Lamar Villere, who owns the stock in his fund. ‘But you’re also not taking a lot of risk.'”
Read more in the full article here.
MacDailyNews Take: Out at $130, in at $110. What a wonderful summer! Thanks for the free shares, shorts!
SEE ALSO:
Jim Cramer: This is why you hold Apple stock – August 10, 2015
Apple’s biggest problem: Wall Street – August 6, 2015
Apple stock will rebound for the same reason it’s swooning – August 6, 2015
Morgan Stanley: This is your chance to buy shares of Apple at a discount – August 6, 2015
Apple stock implosion shreds $113.4 billion and counting – August 4, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015
Nobody should be buying Apple expecting it to double in the next year
DUH. What we need is a manual for stock manipulators outlining:
HOW To Make Apple’s Stock Drop
There clearly are some experts on this subject. Why not make yet-another buck by sharing how it’s done?
Cramer already did.
Oh yeah! I forgot. 😉
This is where a guy with as much money as Ichan can really burn ALL the shorts by buying shitloads of AAPl just before options expiration…
Come on Carl, if you ain’t trickle sellng to drop the price, show us your mettle.
Yeah, the rich people like Carl Icahn got to show the shorts, the meaning of power of the $MONEY$.
It seems that every couple of years, AAPL’s running to the wall.
The rapid price swings are all about traders and the manipulation of FUD. Investors, those who hold stock for the long haul, are not caught up in the short term flux. The last “big” drop resulted from a WSJ article that seemed to be written with the intent to stimulate FUD. Level headed analysis of Apple fundamentals and the fundamentals of the Chinese yuan devaluation came out very rapidly following the article. In my opinion, that WSJ article was written more like an article one would expect from a tabloid than from a well researched and documented article from a serious and respected news source. I continue to loose respect for, and trust in the WSJ.
Recipe for diaster:
Hire a CEO that misuses the company to push his own personal agenda, pissing off half of his customer base.
Hire thugs from rap music industry to be the face of the company.
Focus on hip media business and ignore large segments of the computer business.
Let fashion designer design computers for professionals.
Adios AAPL value.
Bigoted idiot.
1. Tim Cook isn’t some hire off the streets. He was hired by Jobs in 1998, was CEO during Jobs’s absence in 2009, and was basically running the company even before Jobs officially stepped down in 2011. Not to mention he’s made Apple the largest, most profitable, and most successful publicly traded company on the entire planet.
2. “Thugs”? Face of the company? Dre’s far from being the face of the company. Jimmy Iovine has had far more exposure than Dre, and is far more crucial to the company than Dre.
3. Isn’t that the criticism closed-minded fools like you have been trotting out since the iPod days? And funny, I recall the focus on music and the iPod and other “hip media business” stuff being integral to Apple’s revival …
4. What fashion designer? You can’t mean Angela Ahrendts, since she’s RUNNING RETAIL AND HAS NOTHING TO DO WITH DESIGN. And if you mean Jony Ive, the guy who’s been working for Apple since 1992, is not a fashion designer, and has been integral to Apple’s design ethos since, like, 1997 …
In summation, you’re an idiot and a bigot, and if the people running Apple listened to you they would be out of business today. But please, lecture us more on how the most successful company in existence is doing it wrong and how its stock holds no value.
The stock market does not reflect the value of a company.
The stock market has been rigged… forever.
Gary above is a homophobe (which means generally that he has insecurities to deal with that are far greater than his fear of people different than him).
Concentrate on how a company can deliver products you truly want at a price that you can afford to pay.
All the other stuff is just noise.
There’s nothing mysterious here. Wall Street won’t come out and say it direct, but they’re not looking for constant growth. What professional investors look for is volatility. It’s the ups and downs that make them their money. Driving Apple shares down just before the annual “reveal” is an obvious thing to do, so you can make a killing when the shares rocket up again. And they will. Unfortunately, the financial regulators are well aware of all this, and rarely bother to track or investigate the market manipulation that goes on. Continuous growth is, after all, a myth only the general public believes. Nobody in professional finance believes it.
I am suprisingly suprise that the explosion in China didn’t brought the stock down!
There is hope!
Some of the reasons seem legitimate, some do not. The devaluation of the Chinese currency certainly makes some sense if Chinese consumers have lost money and can’t afford to buy Apple products. I’m just surprised this wasn’t seen months ago when Apple’s target prices were being raised.
Downgrading Apple for lower than expected AppleWatch sales doesn’t make a lot of sense because I figured that revenue was merely icing on the cake.
I’m not buying anymore Apple shares not because I don’t trust Apple, but it appears Wall Street has a huge beef with everything Apple does and therefore nothing will turn out favorable for shareholders. I might as well buy shares from companies that don’t offer as much but don’t seem to be affected by rumors and FUD that Apple is constantly subjected to. I simply don’t grasp why AAPL keeps losing value when the company isn’t doing that poorly. The future is never guaranteed no matter what anyone says.
I honestly can’t believe a consumer tech company should be constantly under attack from the news media the way Apple is. It’s not like Apple is causing any personal injuries, lives being lost or there are wetlands being ruined. No massive product recalls, either. However, Apple remains under constant news media attack for things that shouldn’t matter so much.
Apple is being attacked constantly from left to right. Only God knows why?.
It seems many are irrationally fearful of a continued AAPL share price fall. What did Warren Buffet say? When people are greedy be fearful. When people are fearful be greedy. It seems a good time to start accumulation again.