“Many short sellers appear to have unwound their bets against Apple this week, and a 6 percent fall in the stock price suggests they made money as investor worries about the company countered a record launch of its newest iPhone,” Noel Randewich reports for Reuters.
“Worries about slowing economic growth in China, an increasingly important market for Apple, have recently hurt the Cupertino, California company’s shares, sending them down about 19 percent from a record high in April,” Randewich reports. “On Thursday, Apple was down 2.2 percent at $107.83 on a report that chip suppliers were concerned the iPhone maker would cut chip orders for the fourth quarter.”
“Borrowing in Apple shares grew 32 percent through most of September, and then abruptly dropped 31 percent this week, according to lending data from SunGard’s Astec Analytics, which provides a strong glimpse into short-selling activity,” Randewich reports. “Short sellers borrow shares and sell them, hoping to buy them back later for less to return to the lender. During that time, they have to pay interest to the lender. This week, Apple’s stock has fallen almost 6 percent, suggesting short sellers wrapping up their bets may have made money.”
Read more in the full article here.
MacDailyNews Take: This too shall pass.
There was also a rumor from the always reliable Digitimes that Apple was cutting back on chip orders. That was what appears to have initially caused the dive.
Rumors are killing Apple stock every day. Apple has a big media team. They just sit there, never intervene to nip the wrong information. If Apple is so upbeat about 6s (Cook’s statements), then why doesn’t it say that the information coming from the so called suppliers is bogus. Apple is preparing for a big Holiday season. Keeping silent in such matters is encouraging more such talk. If Apple is unwilling to defend its own position, why blame the traders and short sellers?
You are operating as if what Apple says has a bearing on stock price. That is only one step removed from the company performance has a bearing on stock price. Both are false. The single biggest factor driving stock price is speculators pushing the stock up and down. Nothing Apple says, no number of iPhones sold, can overcome that.
The 6S is completely sold out in China. Yet the market is still worried about China. It really doesn’t matter what Apple does. The market is going to fret.
Nothing Apple doing is good enough, even Apple sold 50 million iPhones 6S and iPhones 6S Plus over the weekend still not good enough, so who cares any more.
Let the shorts do what the shorts want.
Apple has become Wall Street’s biatch. There’s absolutely nothing protecting this company from rumors, slander and defamation. Apple management probably doesn’t care as long as consumers are buying their products and as long as their stock buybacks are in place. It’s not financially hurting me but it sure is annoying to see Apple taking a beating day after day while Amazon goes merrily on its way. I just keep thinking as to why Apple doesn’t employ some of the strategy Amazon uses of growing the company with its abundance of cash. I’m sure Apple can’t really absorb companies like Amazon can but I keep hoping for just one big acquisition score from Apple that might turn the tide. I realize that an acquisition isn’t always going to pay off. Beats has done nothing positive for Apple that I can see.
Instead all I hear about is how China is suddenly penniless and no consumers can afford anything Apple sells. It’s as though Apple is the only tech company dependent upon China’s economy. I’ll just have to be content with my Apple dividends and enjoy what I buy with them. Griping isn’t going to get me anywhere.
Wall Street will come around when Apple services revenue begins to eclipse Google which shall happen soon