First post - long long time lurker
Hi All,
First posting because I am a long term investor in AAPL - and quite frankly, this selling makes perfect sense. I am not currently selling because I am underwater, but also don't believe that this is the time to sell anyways.
Here is why:
1) AAPL is 67% institutionally owned.
2) AAPL posted a great quarter, but showed that the days of triple digit iPad/iPhone YOY growth are pretty much over, and EPS has slowed to single digits (down from Q1 2012, where YOY growth was 116%).
These two facts are the most important explanatory reasons for the sell off. YOY growth at 116% with a P/E of 13 is a growth investors dream. 1 year later the EPS is down to 7%, so they exit.
The stock fell from 700 to 500 because people expected the days of triple digit to be over. I bought in during this fall (closer to 500, luckily), understanding that it could be a long road for AAPL - but I also believed that China would be its present and future. I was extremely surprised at how narrowly they beat the street.
The most recent fall is a combination of a narrow beat and poor guidance. What is causing the fall to be even nastier is that Peter admitted that this guidance was realistic - he was no longer wasting our time with stupidly low numbers (even though the numbers he presented should be low).
The current pattern for AAPL in my opinion is a transition from a growth stock into a blue-chip/value-stock and this will take time. The institutions that had it as a growth stock will be dumping very aggressively. Fundamentals will fly out the window short term and we will be in a land of technical indicators and modeling.
Wait it out guys. Huge fundamentals and a low P/E with a dividend are not a bubble stock, don't be fooled. Finally, growth investors are skiddish and could easily come running back with new product or huge deals with massive carriers. They drove it up really fast, and are exiting very fast. If you played the earnings like I did, you ran this risk. Hopefully you don't need the money in the next 3 months.
Good luck to all AAPL share holders and be patient!