Apple trades at near five-year low after Univeral Music reports

Discussion in 'General Mac Discussion' started by medea, Apr 11, 2003.

  1. medea macrumors 68030

    medea

    Joined:
    Aug 4, 2002
    Location:
    Madison, Wi
    #1
    Apple shares dropped to a near five-year low (US$13.40) after the Los Angeles Times reported earlier today that Jobs & Co. are in talks to buy Universal Music Group for as much as $6 billion.
     
  2. Mr. Anderson Moderator emeritus

    Mr. Anderson

    Joined:
    Nov 1, 2001
    Location:
    VA
    #2
    Wow, that can't be all that good - but then, given the 970s coming out this year, well, things might go in reverse and start gaining - good time to buy....;)

    Any thoughts as to why it would drop?

    D
     
  3. uhlawboi80 macrumors 6502

    Joined:
    Sep 8, 2002
    Location:
    houston
    #3
    well i was wondering how much it would drop. It will most likely recover, but the market doesnt like to see companies spreading themselves too thin (which apple would be doing) or moving into expansive fields outside of their specialization.

    i dont think people in the tech industry want software/hardware makers foraying into sectors unfamiliar to them. If apple spends 6 billion on universal music and it turns sour...apple may be a memory.
     
  4. Chad4Mac macrumors 6502

    Joined:
    Apr 20, 2002
    Location:
    Los Angeles
    #4
    Wallstreet is a little nervious about this talk.

    First, Apple recently was running an operating loss, and it is not clear how Vivendi would help its PC sales. I think they should focus on the core of the business to fix the loss (cough, 970).

    Second, the two companies are of similar size and face inherit difficulties in bringing the two businesses together (cough, AOL and Time Warner).

    Three, Is it all that necessary for Apple to buy Vivendi to support its music distribution service slated for this year. Not really.

    The problem is speculation on a uncertain business model if the two companies merge. But, I will tell you, if these two companies merge, Apple better have something really, really good up thier sleeves or else the stock value could drop like a stone -- even at current levels.

    Music industry + PC industry = oh, ****

    Chad4Mac
     
  5. bousozoku Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #5
    I was surprised that 13 something would be the lowest since this would have been double the price, as it was prior to the stock split and 26 didn't sound all that awful.

    I made a copy of the 5 year chart though.
     
  6. kenkooler macrumors regular

    Joined:
    Jan 2, 2002
    Location:
    Mexico City
    #6
    It has dropped since the market closed...
    its now at 12.75
     
  7. Chad4Mac macrumors 6502

    Joined:
    Apr 20, 2002
    Location:
    Los Angeles
    #7
    Not to sure about that.

    I have Apple after hours at $13.2400 down 1.16 with the last trade at 17:28.

    Chad4Mac
     
  8. iJon macrumors 604

    iJon

    Joined:
    Feb 7, 2002
    #8
    well it closes at 13.20. and can i ask how it can drop after the market closes.

    iJon
     
  9. rainman::|:| macrumors 603

    rainman::|:|

    Joined:
    Feb 2, 2002
    Location:
    iowa
    #9
    after-market trading.

    pnw
     
  10. iJon macrumors 604

    iJon

    Joined:
    Feb 7, 2002
    #10
    oh ok, i knew i would be eating my words because i dont know much about the stock market, learning though. i just thought it was odd. thanks for the correction.

    iJon
     
  11. MacAztec macrumors 68040

    MacAztec

    Joined:
    Oct 28, 2001
    Location:
    San Luis Obispo, CA
    #11
    Sucks

    I used to own Apple stock. I bought some at 19, and sold it at 25. This was about 2 years ago. I invested in Cisco at about 17 last year, with 100 shares. I've lost about 400 dollars, but I haven't sold my stock yet so I am ok.

    I use Ameritrade to trade my stocks. Works fine for me. I wish I had a little more money in my account so I could buy some Apple. Now is a good time to buy.
     
  12. Chad4Mac macrumors 6502

    Joined:
    Apr 20, 2002
    Location:
    Los Angeles
    #12
    Yea, Aztec, right now Apple is a good buy. However, I think that if more talk of this Vivendi merger happens thru Monday, the stock could drop further -- this would obviously would be a better time to buy.

    We shall see, though. I think the only thing that could positively effect Apple stock is good numbers April 29th (or the 24th).

    Chad4mac
     
  13. iJon macrumors 604

    iJon

    Joined:
    Feb 7, 2002
    #13
    i always love it when the charles schwab wannabes tell everyone to buy apple stock right before macworld, so funny.

    iJon
     
  14. BrittasMac macrumors member

    Joined:
    Feb 7, 2003
    Location:
    CA, USA
    #14
    The RIAA missed an enormous oppurtunity when it chose not to implement an online music service before Napster use spread too much. This is an incredible potential for profit and Apple could easily corner the market with an online music service. Purchasing assets of record companies would make it a lot easier to go through with it.

    Believe me, online music purchasing is an untapped goldmine that Apple is in a position to take over.
     
  15. iJon macrumors 604

    iJon

    Joined:
    Feb 7, 2002
    #15
    i think apple will have a big hit if they do this, but if its a dollar a song they can count me out, too much money when considering acqusition is sitting in my dock.

    iJon
     

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