Because the global economy is a house of cards built on insider information and rumors for anyone not in the know.
In short, stupidity.
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Apple Again The Second Most Valuable Publicly Traded Company in the World
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Because the global economy is a house of cards built on insider information and rumors for anyone not in the know.
In short, stupidity.
Long term means hold it in the retirement investment portfolio, let the stock price auto pilot.
I think Apple will be gone much sooner than oil companies (energy sector).
It probably happened when that one guy who was right last time said something bad about something.
Smartest people in the world are on Wall Street? The ones that ran up Apple's stock to $700 and were predicting $1000 and are now selling it in droves.
Your faith in these Wall Street muppets is misplaced. These are the same people that needed billions of tax payer money to stay afloat not all that long ago. They fail at the capitalism game.
Someone tell me again how Apple is worth $1000 a share even though five quarters forward earnings when they were KILLING IT didn't value them at $580 a share?
Value investing is not fuzzy math, ladies and gents.... there's a reason that Apple's stock price has this much downward elasticity. It's called overvaluation.
Value investing is not fuzzy math, ladies and gents.... there's a reason that Apple's stock price has this much downward elasticity. It's called overvaluation.
You understand that being smart doesn't always equate to being honest, right? I'm not saying this to point fingers at Wall Street. I'm smart, too. But does that mean I never tell people what they want to hear?
Analyst valuations are quite frequently inflated because they've got clients they represent on the other side of their business who benefit from selling you an overvalued security that *they* were advised to purchase when it was undervalued.
As an investor and one who happens to be a business analyst (from the inside of a software company not on Wall Street), the gullibility of the masses works to my advantage.
I'd beg to differ. All the top dogs either stayed at their companies and recieved (and are now getting more) truly MASSIVE payouts or golden parachutes, and NOT ONE has been jailed for clearly illegal practices.
If you define capitalism as prosperity for all, then yes they suck. If you define it as it has always been, an abstract hierarchical system to ensure the top dogs stay top dogs, then they play the game beautifully.
Don't let anyone fool you into thinking that companies, other than your ability to buy their products, give a **** about you or others. Structurally speaking they can't. It's $$$$ that runs the show.
The "smartest people in the world" who somehow misjudged the housing market so badly that they plunged our country into a depression. Yes, those "smartest people" indeed.
You are right, this entire slide has been nothing but panic selling. Nothing else could have possibly influenced people to want to pay less for Apple stock or value it differently. Everyone just sees people selling and decides to sell! First it was profit taking, then it was capital gains tax and now it is just everyone in panic mode! Are you also in the same camp that has been claiming that we should buy the stock since its considered a steal the entire ride down from $705?
Conspiracy theories everywhere! Heavily manipulated stock, nothing to see here folks. Only manipulated when it goes down, when it goes up it is just Apple being awesome!
Macrumors, harboring massive quantities of aluminium hats for Aim Chair Power Brokers since September 2012.
Sorry to hear that. You're right about the long-term but be prepared to see more downward pressure. I bought AAPL @ 584 sold @ 640, bought at 632 sold at 683, bought @ 671 and finally sold @ $702. That day AAPL went to 705 after market hours. Although I made all the right decisions and it feels good, I feel AAPL is being treated unfairly and based on fundamentals it should still trade above $500, if not $550.
I'm looking for $350 to $380 range to get back in the game.
Ditto about the cash. Their share buy-back program needs to accelerate, instead they actually diluted shares in the last few months. Easy way to improve the EPS.
No, it's the institutional investors who manage growth portfolio who are dragging the stock down. Apple is way underpriced today. Apple is turning to a blue chip company, like IBM or Microsoft. Apple's last results show that growth will not be double digits.
Those investment managers have to meet criteria, to track a growth index. They are shorting Apple because they cannot hold it anymore.
That's a simple, painful transition. Once the sell off is done, stock price will be up again. Apple's shareholder structure is changing to long term, dividend, structure.
Growth is gone, welcome to stability and dividend.
May I ask why you aren't looking for other bargains that exist currently out there in the market that have as much or greater return potential? (They do exist, trust me.)
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!
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!
I wouldn't turn a trade into an investment. If you bought apple at 605 with the idea it'll reach 1001 but instead it went to 437 (current price), then that's just a bad trade. Turning a trade into a "long term investment" when the trade goes sour always amounts to tremendous losses.