Apple hits correction territory, closing down more than 10.5% from its January 18th record high

“Shares of Apple Inc. tumbled 4.4% to $160.37, the lowest close in over three months, and enough to kick off the first official correction in 15 month,” Tomi Kilgore reports for MarketWatch. “The stock has now lost 10.5% since it closed at a record $179.26 on Jan. 18.”

“The last time Apple suffered a correction was when it fell 10.6% from the Oct. 25, 2016, close of $118.25 to Nov. 14, 2016, closing low of $105.71,” Kilgore reports. “In addition, Apple closed just 0.6% above its 200-day moving average, which many view as a dividing line between longer-term uptrends and downtrends.”

Kilgore reports, “The 200-day moving average currently comes in at $159.47, according the FactSet.”

Read more in the full article here.

MacDailyNews Take: This too shall pass.

SEE ALSO:
iPhone sales are much stronger than some seem to realize – February 2, 2018
Dow plunges more than 600 points; Apple shares fall – February 2, 2018
Apple breaks record for biggest ever company profit – February 2, 2018
So much for worries over Apple’s iPhone X – February 1, 2018
MacDailyNews presents live notes from Apple’s Q118 conference call – February 1, 2018
Apple smashes Street with biggest quarter in company history – February 1, 2018

21 Comments

  1. Do not buy a penny over $150 if you are Bullish. None over 100 if you think we are entering a Bear market.

    Before all the posts about company fundamentals, good stocks get caught up in a downdraft and you want to buy as cheaply as possible. If you buy today and it continues down, even as a long term hold, you are missing out.

    If the market continues down, people will be forced to sell good stocks to cover margin calls. If you are liquid and want to buy the key is to not buy too quickly.

    I have not bought Apple shares in years- stopping before the 7-1 split when it was a little over $320 a share. In today’s shares that would be less than $50/ share. If it goes below $100, I’ll think about it.

    1. no wonder you haven’t bought any shares for so long, if you are waiting for it ti go that. low.

      the things that drive the stock market are basically beyond our ability to influence, so it does none of us any good to carp about it. it is what it is and always has been and it ain’t gonna change.

      that said apple will go up and down, just buy on the dips to the level you can afford at the time. likely it will go even lower before it goes back up much, BUT…..

      keep calm, betting against apple is a suckers bet, it will go back up (and down again ad infinitum) but best of all it also pays a decent dividend – no matter a specify stock valuation.

      the golden days of amazing growth are over. it is no longer a growth stock it is a buy and hold stock

      it is the at&t of our generation – a widows and orphans stock to hold and harvest them dividends. and if the valuation grows, so much the better – that may change over time but the dividend just keeps chugging along

      if you are uncomfortable with that, there are plenty of other stocks to choose from. me, i am sticking with apple.

  2. Jesus Christ could there be any more negative Apple news after the best quarter ever.. These news services should just shut down fro spreading false misleading info.

    1. Trump sang Apples praises in the State of the Union. So yes. Thank Trump.

      The markets sees the phone market as saturated with no real place to grow. We’ll see.

      Any ideas ? Time to go back to the “I’m a Mac” commercials ? Or any at all, to grab market share?

      How about spots illustrating reasons to buy the watch.

      1. Apple is doing great.. actually beyond great..
        The media is despicably and blatently lying about the facts.. .. pur facts that they did not even have to discover on their own since they were all chewed up at the conference call and handed to them to swollow…
        yet they chose to go on and lie ! In Your face… and u fortunatly u seem to bought it ..

        Here are the facts: ( should Apple be down 10% in the past few weeks? If it was not for pure lies ).

    2. The stock market is having a tantrum. It’s crying because the great job numbers announced today, increase the likelihood of interest rate increases. They WILL increase, but the market acts like a child that can’t have what it wants and reacts. Being a skeptic, the drop gives many a great opportunity to reap big dollars. The child also didn’t like the release of the dossier, because of a bit of uncertainty.
      The press jumped on the “end of the world” as some reported the market drop to be “666.” Most fixed on “665.”

  3. Moody’s Investors Service said Apple inc. indicated on its first quarter 2018 earnings call that it plans to become approximately net cash neutral over time. Though this change in financial policy is credit negative, the Aa1 senior unsecured rating and stable outlook remain unchanged. As of December 30, 2017, Apple holds a net cash position of $163 billion, comprised of $285 billion of cash and investments and $122 billion of debt. Management stated that it would provide specific capital allocation plans during its next earnings calls.

    While the $163 billion reduction of cash and investment balances will represent a substantial weakening of its liquidity position, Moody’s believes that Apple will remain well positioned in the Aa1 rating category given the enduring strength of the company’s underlying business, including a large and global installed base of iPhones, tremendous customer loyalty, and our expectation of annual free cash flow of over $40 billion (after dividends). Even with a net debt balance of zero, Apple would have a robust financial profile with financial metrics that compare favorably with other highly rated companies.

    As of December 30, 2017, adjusted debt to EBITDA was 1.6x, or just over 2x including the tax repatriation liability of $38 billion, which will be payable over 8 years. With tax reform, Apple will have greater flexibility to access its offshore cash flows. Accordingly, Moody’s expects significant de-leveraging over the next several years as Apple will likely cease issuing debt to fund domestic capital allocation and repay maturing debt. Moody’s expects healthy profit growth of at least high single digits over the next year spurred by the demand for the iPhone X, the momentum of the services business, and the return of growth in the greater China market. Within 2 years, Moody’s would expect gross financial leverage to decrease to the low 1x range (or mid 1x including the tax liability, which will gradually decline with the required 8% annual payments for the first 5 out of 8 years).

  4. Folks, Wall Street DowJones lives on “expectations “…And right now the greatest expectation is the interest rates going up due concerns with higher inflation in a heated economy…So bonds become a very attractive investment again, hence this “profit taken” taking your money out of the stocks market and putting into the bonds market…
    And if you want to stay with stocks , stay with the ones that pay good dividends, etc…like Apple!!!
    Still long…Apple in the $200 or more by years end!
    It happens before and will happen again…and again…

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