Apple is no longer worth anywhere near one trillion dollars

“Apple was widely applauded for becoming the first American company to break the trillion dollar barrier,” Jack Schofield reports for ZDNet. “However, its value has slumped to $839bn for a variety of reasons, though other technology stocks have also suffered in a stock market reversal.”

“Apple’s value has fallen by more than $220 billion over the past few weeks,” Schofield reports. “The first publicly traded American company to reach a trillion-dollar market capitalization has seen its value tumble to around $839bn at the time of writing.”

“So far, the effects have not been terrible for long-term Apple shareholders,” Schofield reports. “The $176.78 price tag (see graph) is still higher than the $175 at which they started the year, and comfortably ahead of the 52-week low of $150. Five years ago, they were half that. Ten years ago, they were less than $5.”

Read more in the full article here.

MacDailyNews Take: Never has an overreaction cost so much on paper. $220+ billion!

This too shall pass. May you buy exactly on the low.

SEE ALSO:
Apple to lower iPhone XR pricing in Japan in order to boost sales – November 23, 2018
Why the bad news on Apple keeps on coming – November 23, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018

70 Comments

      1. Apple’s stock slump can’t be explained the way you are attempting to. The entire market is shaky led by tech stocks on fears about the next stage of Trump’s trade war with China. Has anyone noticed that Apple’s price increases match closely what the next tariffs will be? There’s a global slowdown in process. Regulatory crackdowns are also weighing on tech stocks.

        If the problem was Apple not listening to customers and engaging in poor behaviour then the stock slide wouldn’t be widespread among tech companies and the market wouldn’t be shaky. It would just be Apple.

        Or do you think Apple alone can affect the market at large to this extent? If you do I’ve got a sweet sweet bridge to sell you.

        We might be on the cusp of another recession. Obama’s recovery was juiced by Trump’s tax cuts and that is about ready to run out of fuel.

        1. I was simply commenting on silversurfer’s “core customer base”. I can see the point of your comment, but the market doesn’t phase me at all. I care about customer matters only.

          So, to my point, the Apple sphere was covered by zealots, evangelists, proselytizers, hard core Apple techies, etc. That’s been diluted by expanding to the consumer market. They don’t have the pull anymore, or the loyalty. Fashion is fickle.

          1. The article is about the market. Silversurfer was talking about the market. I was talking about the market. You replied in support of Silversurfer’s comment about the cause of Apple’s stock price decline. Now because it is clear you were spouting nonsense you say you weren’t talking about the market? Ooooookay hoss.

            1. And I clearly told you I was speaking about but one aspect that silversurfer brought up. If I were speaking about the market, I would have been speaking about market things. I made it abundantly clear I was not.

          2. “They are leading blazing the way though if there is one.”

            Problem for you is that Google started dropping a month before Apple did. Amazon started dropping before Google. Facebook started dropping before Amazon. Even Netflix started dropping before Apple. Apple was the last of the FAANG stocks to start dropping. Apple also hasn’t had the largest drop of the FAANG stocks.

            Look, you shouldn’t talk about what you clearly don’t know jack about. Apple didn’t cause this market correction and Apple isn’t leading it or blazing the way. Apple will recover and the stock price will normalize. This has happened four other times since 2000 with Apple losing as much as 40 percent of its value. Each time AAPL recovers. Each time nothing Apple did or could have done caused it, led it, or could have prevented it.

            Hey, let’s not let reality spoil the hate and blame party. Keep on keeping on chum.

          3. I just quoted you saying Apple led the way.

            “Okay a rare market speak comment from me…
            “It is a correction encompassing the entire market”
            Lead by Apple! There!”

            Then you also said “They are leading blazing the way though if there is one.”

            You better look behind you. Backpeddling that hard you’re sure to run into something.

            If you can read a chart you can learn for yourself that there has been a market correction. That isn’t up for debate.

            What I’m trying to make you understand is that Apple didn’t lead it in any way shape or form.

            Do you understand that now?

          4. “the “encompassing the entire market” quotes were yours.”

            Yes. I know. I didn’t realize I had to write so simply for you. Okay, let’s try again.

            You said “Okay a rare market speak comment from me…”

            Then you quoted me “It is a correction encompassing the entire market”

            Then you commented on what I said about a correction encompassing the entire market and said “Lead by Apple! There!”

            If that isn’t you saying Apple led the market correction I can’t help you sort out your muddled thoughts.

            BTW, it hurts my brain every time I have to quote you saying “Lead by Apple!”

            Led. Led. Led. Dummy.

          5. “Loss led dummy!
            Follow the ledder!”

            Once again your reply makes no sense.

            There’s no getting around it. You said if there was a market correction it was led by Apple. I proved that was not possible because every other FAANG stock started declining before Apple.

            You understand how before and after work, right? Right? Hmm, maybe you don’t.

            1. What’s a FAANG?
              Are you a werewolf?

              I NEVER said Apple caused the ( 😉 ) correction or that there was a correction at all. I saw no charts in the article, did you?

              If there was a market correction, according to you, not me, it was led by Apple. I don’t suppose everyone lost $125+ B in market valuation. Did they?

          6. “If there was a market correction, according to you, not me, it was led by Apple. I don’t suppose everyone lost $125+ B in market valuation. Did they?”

            I did warn you not to talk about stuff you don’t know jack about. FAANG is commonly used to refer to Facebook, Amazon, Apple, Netflix, Google. The group of big tech stocks. I would argue Netflix shouldn’t be in there but analysts insist on including it.

            You are definitely on record saying that if there was a market correction then it was led by Apple. No way to backpeddle your way out of that now.

            It is nonsense. You don’t seem to be aware of what is happening to other tech stocks and the entire market right now. Are you that uninformed? I’ll just quote from my other comment WHERE I ALREADY PROVED APPLE COULD NOT HAVE LED ANY MARKET CORRECTION:

            “Google started dropping a month before Apple did. Amazon started dropping before Google. Facebook started dropping before Amazon. Even Netflix started dropping before Apple. Apple was the last of the FAANG stocks to start dropping. Apple also hasn’t had the largest drop of the FAANG stocks.”

            Back to your question “I don’t suppose everyone lost $125+ B in market valuation. Did they?”

            Wow. Ummm, yes. Yes the big tech stocks did. Facebook has lost $236 billion in market valuation. Google has lost $173 billion. Amazon has lost $229 billion. Netflix lost $71 billion but Netflix had a small market cap to begin with.

            Apple’s loss looks big in absolute dollars but on a percentage basis which is the only proper way to view it Apple was not even the biggest loss. They didn’t lead the correction no matter how you try and look at it.

            Understand now?

            1. I’ll accept you numbers for losses once you put in corresponding dates of the losses. Like I said, I don’t care enough to know….

              What I do hear constantly for the past two weeks is bellyaching about Apple losses.
              It does seem Apple lost $125B in two weeks. None of it mine. Or any other’s losses for that matter.

              Now… you show me where I said there’s a market correction and I wasn’t quoting you, you crazy person….

          7. “Like I said, I don’t care enough to know”

            Exactly. Yet you continue to make statements about Apple as if you know everything. Then when you are proven wrong you reply with other statements that make no sense.

            You are denying reality now when it comes to the other tech stocks and value loss. I’ll give you one date. The rest can be your homework if you want to continue to talk like you know anything about this topic. July 25, 2018 Facebook was worth $633 billion. July 30, 2018 Facebook was worth $498 billion. That’s a loss of $135 billion in five days. Different sources will have slightly different numbers just FYI because you probably don’t even know that. Then it went back up, then down again, then up, then down, up, down (declines don’t happen in a straight line which is another fact you probably don’t know), but always continuing its decline and closed Nov 27 at $393 billion for a total loss of $240 billion in about four months.

            “What I do hear constantly for the past two weeks is bellyaching about Apple losses.”

            Nope. It’s on you to educate yourself. Don’t be lazy and blame others.

            I am done with you. You are uninformed and lazy. I think you just like to hear yourself talk. Continue without me.

            1. Still no quote attributable to me on a market correction. One month ago Apple was a trillion dollar company. Now it’s $125B or so less. That’s one heck of a rate of loss. Maybe it looks better as a %…

          8. One more comment before I go just because this is too juicy to pass up. You said below in another comment:

            “So YOU are the guy that puts percent in the bank!”

            Yes. That is how paycheques work. Percent is the difference between gross and net. You probably don’t have a job so you don’t know this. You are a grade A chump. Just epic level of chumpness. EVERYONE puts a percentage of their income in the bank dummy.

            That’s all for me. You can stroke one out by yourself now.

            1. He must not have a job if he doesn’t know about tax brackets in the US or payroll taxes and how everyone only gets to keep a percentage of their income. Give him a break. He’s just some dumb kid. According to taxfoundation.org the rates for 2019 range from 10 percent to 37 percent. You’re welcome.

        2. You are right there are a number of macro factors that effects the Apple selloff, but the trigger point for Apple was Timmy’s hide-the-decline move that did not impress analysts and investors.

          The point about the core base is that the iPhone customers are not core base. The iPhone users are only loyal till their plan expires, after which they will re-evaluate the loyalty against a number of factors.

          The core base is the Mac users, the Apple ecosystem user, the long loyalist who have supported the company through thick and thin maybe even for decades in addition to some key developers.

          It is this base that pushed Macs, iPhones and iPads into business and corporate accounts against the will of IT (read Microsoft drones).

          With Apple alienating this base to the point they stop pushing, recommending or even using Apple products, businesses will leave in droves because the Microsoft drones still to a very large extent rule corporate IT. – and they HATE Apple.

          With corporate dumping Apple products, equally will a large portion of the private market because more often than not, people choose what they know from work.

          1. “the trigger point for Apple was Timmy’s hide-the-decline move that did not impress analysts and investors.”

            That makes no sense unless you believe Apple triggered the entire market decline that is happening right now.

            You could possibly argue that Apple’s decline may have been less worse but even that is a tough argument to make. Apple has had stellar results in the past and also been punished for it on the stock price.

            There is no decline that needs to be hidden. There is a natural slowing of growth. Apple’s fundamentals are sound.

            Why aren’t you saying the same thing about all the other tech companies that don’t report unit sales?

            1. The trigger point for the Apple stock. Is that clear enough?

              What the other tech companies do are pretty irrelevant, and yes, Timmy is acting to hide the decline.

            2. “That makes no sense unless you believe Apple triggered the entire market decline that is happening right now.”

              Ridiculous and makes “no sense.” Many fine MDN posts said the same and news reports confirm, HIDING UNIT SALES was the absolute “trigger” that immediately sent Apple stock in a tumble.

              A petty defensive move to protect Cook and his clueless cronies for mismanagement practices putting profits first and customers LAST. No one is happy with this decision except the Apple Star Chamber and Apple apologists. Cook started the defensive trend years ago HIDING watch sales numbers from the get go.

              Forget other companies, it has never been done before in Apple’s history and that speaks volumes…

          2. “What the other tech companies do are pretty irrelevant, and yes, Timmy is acting to hide the decline.”

            Hmm, so if Apple had acted differently their stock would not have declined even though the entire market has declined and investors are selling off all tech stocks right now. Interesting take. Batshit crazy, but interesting.

            Did you know that AAPL has taken four dives in the past 18 years, each time losing about 40 percent of its value? Each one caused by the market at large and each time it had nothing to do with what Apple did. If you want to convince me you’ll have to make an argument for why this time is different than the previous four times.

            1. What we see now is loss of confidence by the core base, which we have not seen since before Steve Jobs returned to Apple as iCEO.

              We also saw the same kind of loss in core base confidence in the mid 90-ties where bewildered management started licensing clones, and fundamentally were unable to progress the operating system in any meaningful way.

              Although the current management still is making some progress in developing the iOS part of the business, they equally is acting to tear down the macOS portion of it faster than anyone could imagine.

              Also the focus on virtue signaling and milking the base with excessive product pricing for the purpose of development of services, signature buildings and lofty future projects (such as the car) is also alienating the core, and contributes to the loss of confidence.

          3. “What we see now is loss of confidence by the core base, which we have not seen since before Steve Jobs returned to Apple as iCEO.”

            Complete nonsense. Investors in the market affect the stock price, not the core base. Apple has take serious stock hits in the past, four times since 2000, and none of those had anything to do with customers not being satisfied or Apple losing customer confidence.

            Make an argument. Convince me. All you are doing is making a nonsensical statement along the lines of buh buh buh this time is different.

            You also said corporations are dumping Apple products. That’s not true at all. Enterprise use of Apple products, including Macs, is up over 40 percent this year.

            You’re all over the map, throwing noodle statements at a wall to see if anything sticks.

            1. I touched on it in a message above, but in the market Apple has maneuvered itself into sentiments can lead to fast and abrupt shifts in the market situation.

              We have seen the start of this already in the macOS market where there is a very strong sentiment that Macs are now overpriced, under-engineered and often significantly outdated devices.

              Despite the recent Mac Mini announcement we see no long term commitment to the Mac and macOS expressed by management; Not at the WWDC, not at the latest event.

              The push for iPad to replace Mac hardware as your main computer is stupidity on steroids given the limitations of iOS, and clearly show management have little contact with the real Mac users.

              Equally the sentiment building in both iPhone and iPad markets is they are way overpriced.

              People hold back on updating their devices because they no langer can afford exorbitant prices which gives them marginally new functionality. This is particularly pronounced in markets where currency changes kick in to the disadvantage of Apple products added on top of a general price increase of the newest products.

              If you think these factors are not going to influence the valuation of the company in the coming year, dream on. As I said, Denial is not a river in Egypt.

            2. “Investors in the market affect the stock price, not the core base.”

              Market valuation is judged by investors as they look at all factors. Management, products, sales, profits, consumer confidence and yes the direction of the “core base” of support more important than fickle consumers…

          4. “If you think these factors are not going to influence the valuation of the company in the coming year”

            All of this will have some impact on Apple’s valuation in the coming year. Less than you think though. Problem for you kiddo is that isn’t what we’re talking about. We’re talking about Apple’s recent stock price decline and what caused that. Hint: nothing you have said so far.

            Now you’ve said both that the recent stock decline was caused by Tim Cook hiding iPhone unit sales AND the stock decline was caused by Apple not paying attention to the Mac product line. Which is it? Does the market care about iPhone unit sales or does the market care about the Mac? You’ll say it’s both, it’s everything you’ve said all at once. That’s convenient.

            How about this. It is a correction that is encompassing the entire market and Apple could have been doing everything you wanted them to be doing exactly how you wanted and the stock price still would have declined along with the market.

            You’re looking to blame Apple no matter what. Problem is there’s nothing Apple could have done to avoid this. Markets correct and Apple is part of the market. So it goes.

            Please continue spouting nonsense without me.

          1. Other people don’t mix up you’re and your the way you do. You do it a lot. There’s this thing between writing and editing called proofreading. You should try it. Or are you involved in so many comment fights that you don’t have time?

          2. that commenting on MDN about Apple isn’t important. Strange that you do it so much and even created a fake name to do it with… since it’s you know… not important.

            It is good to know that you consider the things you say here to be… not important. I’ll remember that.

      2. My definition of “core customer base” is pros that have been supporting Apple through thick and thin from the beginning.

        “base defended, supported, and rewarded poor behavior” I believe you are referring to the blind fanboys and Apple apologists, not the core customer base that are sad to witness the tone-deaf beancounter leader supervising the decline…

  1. EZ Come, EZ Go S in colors.

    I think Apple has simply pushed until they found just how far the iPhone would take them. They’re going to start selling the X again to make up for lost sales.

    Here’s hoping that they. Ow turn around and say, “So, about this Macintosh Computers…”

  2. But, keep in mind the new edifice headquarters that Apple built. Isn’t that worth some bragging rights?

    I have taped a photo of it on my 2011 iMac which I would have replaced except for the lack of a Modern Update iMac at the local Apple store. So, I just stare at the HQ photo and feel all warm and fuzzy.

  3. How much lower does it need to go before the phone company shareholders fire Pipeline Timmy?

    Anyone that can turn a leading-edge computer company into a headphone vendor that wastes R&D dollars on developing emojis should be kicked-out the back door.

  4. Only a $839B market cap? It’s about time for a fire sale. Or maybe a “going out of business” sale. Apple currently has a P/E of 14.5 and an EPS of around 11. I honestly would think at one time that would have been considered excellent fundamentals for a company of any type. Apparently, no more. I’m not sure what investors expect from companies nowadays.

    As a long-term Apple shareholder I’m going to sit back and receive my quarterly dividends and enjoy spending them. I see nothing worth fretting about when it comes to Apple. It’s only been a few weeks of a market correction and people seem to be going nuts and yelling about how the sky is falling. Ridiculous.

    1. Where have you been? Hiding under a rock? Long time users have been complaining for YEARS about the lack of updates and when a few updates leak out they are paying top dollar for entry level upgrades.

      Here is the difference between Steve Jobs and Pipeline.

      When Steve jobs went on stage to announce upgrades, you know you were going to pay top dollar and you’d end up with the faster computer on the market.

      Pipeline comes out and makes an announcement and he wants you to pay top dollar for tech that is not even on par with a budget entry level PC.

      I think only Apple is putting i3 processors in computers. I looked and most $500 entry level PCs have i7s and some have i5’s. If you want an i5 you have to pay for an “UPGRADED” mac.

      One last thing, there is no one last thing with pipeline. It’s always disappointment with years late upgrades.

    2. Enjoy your dividends. Might not reach for the calculator anytime soon to figure out how many years of dividend dollars, or is it decades, to make up for the lost share value in a few weeks…

      1. As I said in another comment this sort of stock decline has happened to Apple four other times since 2000 with AAPL losing as much as 40 percent of its value. Each time the stock recovered and went on to new highs. This is five times now in an 18 year period. Make it 19 for the eventual recovery. I’m sure you can figure out what 19 divided by 5 is. I’ll give you a hint, it isn’t “decades”.

        1. This is the largest drop dollar wise in Apple’s history and Cook earns the record. By far it will be the most difficult to overcome and climb back from because of three factors: phone sales slowing, overpriced underpowered computers and no revolutionary products in sight. That said, we shall see…

  5. Apple inc. and Warren Buffett are laughing all the way through this major buying opportunity. Long term investors in AAPL just need to sit tight, ignore the nonsense from the markets and enjoy the dividends, which will undoubtably go up again next year!

    Rock on Apple inc.!!

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