What happened to Apple's stock in Y2K?

[Shaun.P]

Hey guys,

I was having a look at Apple's Stock graph thingie and I've noticed than in late 2000 Apples shares plummeted from about 64 to 22 - that's a big fall. What happened? Surely the price of stock should be going up in the run up to Christmas?


Lol - and no blaming it on the millenium bug! :p

[gwuMACaddict]

seems to me they split...

[Shaun.P]

What does that mean 'they split'?

[Flyinace2000]

What does that mean 'they split'?

When they dropped isn't that when the DOTCOM buble burst with losses accross the board?

[williamsonrg]

What does that mean 'they split'?

ECON 101: If a stock is highly valued, the company may decide to spilt its stock, usually in a 2:1 ratio. Thus if I had 100 shares at $100, I will now have 200 shares at $50.

That being said, the last time their stock split was June 21, 2000, and the drop-off in price didn't occur until September. It looks like it was right before the start of the fourth quarter of 2000 (or the first Q1 of fiscal 2001), so I would speculate that it was a bad earnings report.

[madmaxmedia]

I believe it was a double-threat combination of dotcom bubble bursting, and a really poor earnings report (far below general expectations.)

[Sun Baked]

ECON 101: If a stock is highly valued, the company may decide to spilt its stock, usually in a 2:1 ratio. Thus if I had 100 shares at $100, I will now have 200 shares at $50.

That being said, the last time their stock split was June 21, 2000, and the drop-off in price didn't occur until September. It looks like it was right before the start of the fourth quarter of 2000 (or the first Q1 of fiscal 2001), so I would speculate that it was a bad earnings report.That is the split-adjusted price.

But, the Internet Bubble Burst... taking tech stocks along for the ride.

Was also when the G4 fiasco turned one year old...

Basically not a good year end for Apple.

[vtprinz]

Basically not a good year end for Apple.

But would have been a great time to buy in ;)

[Honortgoat]

But would have been a great time to buy in ;)
Sure was. I bought in on 10/20/2000 - still holding tight. (Can't say that I haven't been tempted to take some profits of late. :D )

[Shaun.P]

Can you explain the dot com bubble burst and the G4 fiasco?

[kewpid]

This sums it up fairly well:

http://en.wikipedia.org/wiki/Dot-com

[Sun Baked]

FearFactor47,

Re: G4 Fiasco...

The G4 pretty much went through the same problems as we're going through with the G5, everybody though it be there quick in plentiful numbers and would also ramp up in Hz quick -- but yield, supply, reliability, ect. stung Motorola just like it's nailing IBM right now.

Heck the G4 even caused a huge problem like the iMac G4-to-iMac G5 switchover fiasco, except they actually announced the PowerMac G4 500 and pre-sold them. Got egg on their face when they had to cancel orders, or give you a slower machine at the same price.

Though the G4 500MHz machine they finally showed up 6 months later. Yield was a huge problem along with their ability to increse clock speed.

Sound familiar? ;)

At least with the iMac G5 they didn't pre-sell them -- but they did tease you a lot.