Apple Loses $2 Trillion Status Following Largest One-Day Loss in Market Value of Any Company Ever

[PickUrPoison]

No, because markets fluctuate, sectors fluctuate, currencies fluctuate, suppliers have issues, regulators cause issues, competitors innovate or fail to do so... and Apple will innovate again, but not enough in a phone that’s likely to be announced in the next couple of months to recover these losses in itself

You were dead on until that last part 🙂

The bolded part really isn’t relevant. Apple didn’t drop over the last few days because of a sudden lack of innovation, and it won’t need any innovation to hit a new high next week.

The last few days was a simply a tech rout that took back a small portion of recent gains. A year ago Apple was at 54 (split-adjusted) 🤷‍♂️ Sure Apple closed at 120 today—and it was 138 a few days ago.

But a week from now it might hit a new high at 140. Or, if the market takes a dump, it could be under 100. Who the hell knows? And neither potential outcome may have anything at all to do with Apple’s fundamentals.

The stock market is not the economy. The US economy is on life support at the moment, propped up by trillions of dollars the Fed has pumped into it over the last six months. Interest rates are low, bond yields suck so a lot of money has shifted to the stock market at the moment.

That will change at some point, and investors may end up deciding a stock market that depends on the prospect of higher future earnings isn’t the place to be with a crap economy.

A month from now this Dow 28,000 could be at 18,000 where it was 6 months ago.

Anyone in the market right now would be extrembly well-advised to have a minimum five year—preferably ten year—plan to stay in the market and ride out a prolonged downturn in the market.

And this is no time to be day trading. A week ago I was hearing horrifying stories about people taking out loans to invest in a market that was going nowhere but up. Those folks got wiped out the first day of this three-day tech slide.

 

[eifelbube]

It will go back up to $2 Trilling once iPhone 12 is announced.

That sounds like a self–fulltrilling prophecy to me ...

 

[PickUrPoison]

Tim Cook sold $131.7 Million in Apple Stock 10 days ago (=

It's almost as if he knew something

Apple CEO Tim Cook Sells $131.7 Million in Apple Stock

Apple CEO Tim Cook was recently awarded 560,000 shares of Apple stock for serving as Apple's CEO and for Apple's strong performance under his...

www.macrumors.com

What did he know? Apple didn’t drop on its fundamentals, it dropped because of a slide in the tech sector as a whole.

In any case, as others have told you, sales by insiders are pre-planned and pre-scheduled. Google “Rule 10b5-1” if you’re interested in learning more about trading plans for company insiders.

 

[PickUrPoison]

Do even know how the stock market works or you just like to write something?

Most people think he’s a bot, but probably just a bored teen looking for some interaction, acceptance and validation.

That’s not a complaint or criticism btw. Probably the same reason most of us are here, including me! 🙂

 

[tennisproha]

That’s a great Apple logo. They should make it official lol

 

[Glideslope]

Meh. Expected after the split.

Will likely drop to a little over $100, the realistic evaluation, then start creeping up to about $175 over the course of a year or three. This is an obvious long term hold and safe haven for retirement funds.

Thank you for the informed post.

 

[mcclane72]

Once it gets back up, I’m selling, can’t stomach this.

Where would you invest if you sell Apple? Inflation going up, savings rates are nearly zero. Is there anything as safe as Apple stock with potential to return at least 25-30% a year? Apple's business model and products (both hw and sw) are the best. Most importantly they have a very loyal customer base that just grows each time someone buys an iphone or ipad etc., as someone else mentioned. We cant see in the future but their model is clearly safe for at least another decade. Plenty of time to think about getting out till then. Of course this is just a personal opinion; you have to use your judgment.

 

[ignatius345]

Once it gets back up, I’m selling, can’t stomach this.

Unless you're getting ready to retire imminently, zoom out your stock chart. There's honestly no reason to get caught up in the daily (or even monthly) ups and downs.

It’s all part of learning an investor’s risk tolerance. Losing money can feel much worse than making money feels good.

People who hold haven't actually lost anything. Look at the people who panic sold securities in March if you want a cautionary tale about that.

 

[Abazigal]

Apparently, Softbank is to blame.

SoftBank’s Bet on Tech Giants Fueled Powerful Market Rally

The Japanese conglomerate led by billionaire Masayoshi Son placed billions in options bets on fast-rising tech stocks. Investors say that turbocharged the sector.

www.wsj.com

 

[PickUrPoison]

Apparently, Softbank is to blame.

SoftBank’s Bet on Tech Giants Fueled Powerful Market Rally

The Japanese conglomerate led by billionaire Masayoshi Son placed billions in options bets on fast-rising tech stocks. Investors say that turbocharged the sector.

www.wsj.com

Just came here to post that. Very unexpected behavior from SoftBank... wow.

This is why buy and hold, and dollar cost averaging, is by far the best strategy for investing imo.

Anyone who tries to time the market or trade from day to day (or even month to month) based on their “feelings” about what they think the market or an individual stock, including Apple, will in the short term... well, good luck.

You’re going up against pros that can manipulate the market (in the short term) to their advantage, and they’ll eat you alive.

 

[Analog Kid]

The real answer is a cute little battery company has a new tech with a solid electrolyte, it’s real, it recharges in minutes, it has zero fire risk, and it’s coming to market NOW. Tesla is taking a huge hit with it’s giant capital investment in conventional Li+ “wet” batteries.

Smart money all went to KCAC a week ago.

What a strange thing to say... If the money went there a week ago, it's not related to Apple's recent drop. I'm not sure what KCAC is, exactly, but if their market cap is less than $180B, then it's not the answer to where Apple's value went.

 

[Baymowe335]

I think the current state of Apple or any other member of FANG is good reflection of current economy in general. We live in a bubble and it might one day really burst. How much can governments intervene and rescue economy? How much money can reserves print yet before it all goes to hell?

As to the dip. Nowadays everyone and their mother trades. I've recently heard 12-year olds talking about stocks. There's opportunity in that which big funds notice and start dumping stock to cause sudden price drop. Kids see red pre-hours and for a few hours of session. Then panic sets in and so they start selling. Kids dumping stock generates more panic and more selling. Big funds that generated that drop scoop all those shares up. Robin Hood should seriously be disbanded and forbidden.

At least that's my theory.

Small investors have almost no impact on the market because they have no money relatively speaking.

Apple has the earnings to back up their valuation, as do MSFT, GOOGL, FB, and others. TSLA and even AMZN have insane valuations, though I can almost understand Amazon’s.

The companies have today are infinitely better than anything in the 90s. They have better earnings, better balance sheets, and better track records. Did we run up too fast, particularly in the NASDAQ. Sure, but this isn’t a bubble, especially with low rates, solid earnings, and stocks being the only game in town.

 

[Baymowe335]

They’re referring to the “TINA” bubble, or the there-is-no-alternative bubble caused by 0% interest rates for a decade. People are investing without questioning future returns and economic growth/fundamentals. The “buy-and-hold” strategy works, until it doesn’t. Just ask Japan.

Apple has fundamentals. US equities have always been buy and hold, for 124 years. It’s never “not” worked, Actually. Maybe someday it won’t, but where are you supposed to put your money? Stocks are the only game in town.

 

[theorist9]

This article is pure hyperbole. What matters is percent change, not absolute change. Of course Apple is going to have huge gains and losses when its stock moves, because of its huge market cap.

 

[Xenden]

In the world of fractional shares, it doesn't really matter anymore, as you can always buy Apple stock regardless of how much $ you put into it.

In terms of fractional shares no, but in terms of more shares for the same dollar, it matters.

 

[Macbookprodude]

It looks like the giant is toppling good !!!! Good !!! Now, everyone can see under Cook Apple is collapsing.

 

[MacBH928]

Its interesting how people value things, over a few days they just decide its worth $180B less. Thats a "B" not a "M"...maybe its just petty cash or something.

 

[MLVC]

It looks like the giant is toppling good !!!! Good !!! Now, everyone can see under Cook Apple is collapsing.

Despite all the comments above, you decide to post this nonsense. So, NO, Apple is not toppling, and Apple is NOT collapsing. As to the why, please browse through the comments here and educate yourself.

 

[PickUrPoison]

It looks like the giant is toppling good !!!! Good !!! Now, everyone can see under Cook Apple is collapsing.

Is that why Apple’s stock price—even after this week—has doubled over the last year?

Here’s the share price since Cook took over, when the price was less than $14 (split adjusted).

Not sure why you would still be expecting an imminent collapse after nine years, but feel free 🤷‍♂️

 

[Realityck]

One year ago the stock was 53.32 USD no one should be complaining against how much it is risen, +64.73%, Year-to-Date. They still consider this a buy, but I'd wait and see how it holds its value.

 

[chineseguy38]

I'm sure Apple share will crash again when they announce iPhone 12 if the handsets prices are really more expensive than iPhone 11. They forgot what happened to XR and Xs Pro models.

 

[Realityck]

I'm sure Apple share will crash again when they announce iPhone 12 if the handsets prices are really more expensive than iPhone 11. They forgot what happened to XR and Xs Pro models.

I know the investors look to such things as the latest iPhones and if they have 5G. But that such a narrow focus view of Apple's valuation. The phone market is becoming stagnant as far as growth. You sell more expensive phones but less people buy them. The trend is consumers not trading up on a regular basis, holding onto their phones. IMHO the transition to different processors has the potential to dominate Apple's future instead.

 

[Macaholic868]

Overvalued stocks fluctuate? Shocking!!!!

 

[matrix07]

Do even know how the stock market works or you just like to write something?

Already back at 2T.

 

[Andres Cantu]

Apple has fundamentals. US equities have always been buy and hold, for 124 years. It’s never “not” worked, Actually. Maybe someday it won’t, but where are you supposed to put your money? Stocks are the only game in town.

Not saying Apple doesn't have strong fundamentals, but never put your eggs in one basket. Stocks are not the only game in town. Sometimes even a less than one percent gain can look great compared to a double-digit negative loss. You never know, all I'm saying is investors need to be prepared for any scenario and not assume they're gonna get a 7% return every single year.