Apple stock fell 1.1% in midday trading Tuesday, but bounced sharply off a key chart level, which they have stayed above since the response to the COVID-19 pandemic caused lows over a year ago.
The technology behemoth’s stock was down as much as 3.2% at its intraday low of $122.77, which was hit moments after the opening bell. The intraday low was right around the 200-day moving average (200-DMA), which currently extends to $122.81, according to FactSet. Many chart watchers believe the 200-DMA represents a dividing line between longer-term uptrends and downtrends.
The stock has now shed 12.3% since it closed at a record $143.16 on Jan. 26, while the Nasdaq Composite has slipped 1.9% and the Dow Jones Industrial Average has run up 10.7% over the same time.
MacDailyNews Take: Bobbling, wobbling, bouncing… Entropy is the order of the day!
Tim Cook incinerates cash with stock buy backs. These buy backs do NOTHING to protect shareholders. These buy backs return zero dollars to shareholders.
I thought stock buy backs were designed to prop up the stock price, but decreasing supply of available stock. Shouldn’t that support current stockholders?
If you hold A LOT of stock, you will see an appreciable gain. Ask W Buffet if he likes stock buy-backs.
On the other hand, BBs serve to hike EPS and there have been a number of times since AAPL has employed BBs that the earnings report was “warmer” because of the mathematical benefit they bring. They were once illegal because of what they do to price, in-spite of actual earnings.
BBs are very much a keep-a-good-image for Wall St tool.
Well, the nice thing is if you’re a shareholder, dividends pay out this Thursday so at least we get to pay less than a few weeks ago.
Silver linings…
To clarify, I meant we pay less for shares if you were to reinvest with your dividends.
Wholesale, relentless liquidation of AAPL holdings is underway. Every since the last earnings report, AAPL has PLUNGED now about to breakthrough the past bounce point. Only a few cents remain until this happens. Massive selling by investors as they run to safer investments. AAPL offers virtually no dividend so there’s no reason to stick around and wait for this bloodbath to end. HUGE money is not stupid and they are selling Apple by the tens of millions of shares. Massive volume the past week all to the downside. Where are the bottom feeders? None exist
If you aren’t buying now, don’t bitch later when the stock recovers, and you don’t want to buy then because it’s at or near its all-time high. The Epic lawsuit might be causing some folks to hesitate. Rumblings from Congress might be causing some folks to hesitate. Grumblings from the EU might be causing some folks to hesitate. But Apple’s solid fundamentals have not changed. The wise investor knows to scoop up a bargain when others are hesitating. Here’s how to make money with Apple stock (and I’ve got a 20+ year track record that proves it): when everyone is pulling away from AAPL, buy as much as you can. When everyone is rushing into Apple, sell a bit and take some profit, perhaps to re-invest when everyone gets scared off again. It takes some nerve, but it is, overall, a winning strategy. (Personally, I add to my position regularly and don’t worry about ups and downs, though I do try to add more on the downs.) Now, if Apple’s fundamentals change, then it’s time to re-examine, but for now it’s a moneymaking machine. (The dividends are still much too low, however.)