AfterDawn: Tech news

Apple stock falls almost 30 percent in two months before rebounding

Written by Andre Yoskowitz (Google+) @ 17 Nov 2012 13:07 User comments (7)

Apple stock falls almost 30 percent in two months before rebounding Over the last 8 weeks, the once invincible Apple has seen its stock fall almost 30 percent, while the broader stock market fell 9 percent in the same period.
While many stocks see extreme declines over the course of their lifetime, Apple's is most notable given its current valuation.

After a nice 5 percent rebound on Friday, the company is valued at $496 billion, $100 billion more than the second-largest public company in the world and more than Google and Microsoft combined.

Before the drop, the company was valued as high as $660 billion, meaning in just two months the company lost a value of $164 billion, more than the entire worth of Amazon, eBay and Netflix combined. In other words, the drop was significant.

Apple has seen some slowing growth for their products in recent quarters and have been accused of becoming less innovative, especially when compared to Google and Samsung.

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7 user comments

117.11.2012 13:17

Why so much drop? Did something happen? Or not happen to cause this?

217.11.2012 13:35

Originally posted by KSib:
Why so much drop? Did something happen? Or not happen to cause this?
Not sure, although I wish I was around to short it. I wonder what the put option prices were about two months ago...

"I dont care if your computer breaks down, i dont care if youre sick, i dont even care if your grandmother dies. I have no sympathy."

317.11.2012 13:39

The Main reason apple,nokia,blackberry others fail and android does so well is that android let other develop on there platform and the others dont. another reason is the others make there phones android is only software and is on a broad range of phone not just on there own.

417.11.2012 14:37

Originally posted by KSib:
Why so much drop? Did something happen? Or not happen to cause this?
Some people say its tax selling ahead of the fiscal cliff mixed with the poor earnings report from last quarter.

517.11.2012 21:15
Unverified new user

crapple! lol

617.11.2012 23:33

Maybe people are finally getting wise that Apple is become stale with their products and that they just add little things every year to their iGadgets making them not worth the upgrade in most cases.

"Have you tried turning it off and on again?" ~ Roy Trenneman

718.11.2012 6:44

Originally posted by KSib:
Why so much drop? Did something happen? Or not happen to cause this?
Shares is pretend money, if the stock market crashed right now all companies will only be worth what cash they actually have in the bank and that's no where near what shares are worth.

You buy into shares on the hope that the share price will go up.

At start of the year 1 apple share was worth $363.32USD before the stock price rise.

A certain amount of people will have X amount of shares to make 1 share worth $363.32USD

Then when people buy extra apple shares or buy into those shares that pushes up the share price, those who got in or just after the share price was $363.32USD will have seen the price of 1 share rise up to $705.07USD.

meaning if you had bought 1 apple share at $363.32USD it would have gone up in value to $705.07USD so you have increased your 1 share investment by $341.75USD so if you sold at that price you would have gotten $705.07 instead of $363.32USD for that share.

Some people will have sold their shares at $705.07USD meaning the overall value of 1 apple share will drop.

With people selling/buying apple shares the price today opened at $525.20USD, and right now is worth $527.68USD each share, so it has drop by a fair bit but has gone up slightly.

Drops can be from anything right now it'll be US/Euro and world banks companies rich people buying and selling the shares.

People who have 1000 apple shares when it was say $400USD may sell so they can get a quick bit of cash to buy shares in something else before apple shares drop below $400USD or they loose out on money.

Right now though Europe is up shit creek and many euro people probably have some apple shares and probably held off for long enough and now selling before it drops too low.

Many different factors for different people as to why they want to buy or sell a share.

Right now though for Apple many news sites are stating that Apples Ipod, Iphone and Ipad markets have shrunk rather than expanded and to make more money you need large markets where people buy the new product very quick via current and better yet have new customers.

Though currently apple has a large customer base that isn't always buying the newest product/s and on top of that they have the problem of new customers aren't buying into their products meaning apple are pretty much only selling to a set amount of people who are already apple customers so you end up with less sales and new customers aren't buying their products/s so you have less money coming in and news like that can mean the customer base is bleeding to other products rather than staying with apple and expanding the overall market.
This message has been edited since its posting. Latest edit was made on 18 Nov 2012 @ 6:52

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