The market right now is insane. Because of the world wide self inflicted shut downs and the ongoing shut downs in some states the economy is likely going to be terrible for a year. Yet the stock market is partying like we have a booming economy in the US. Sure we did before CV19 but businesses are closing all over. I don’t understand it at all.
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Apple Loses $2 Trillion Status Following Largest One-Day Loss in Market Value of Any Company Ever
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Because it was revealed Japanese investment company SoftBank was behind the tech rally earlier in the week buying billions of dollars worth of stock from Apple, Tesla, Google, Amazon etc.
Well, these people (looking for short term gain) should have bought in March when the stock was $60 ($240 pre split). Not when it was soaring at an all time high.
If you bought in the recent month, you only have yourself to blame. Should have been ready for a drop, knowing that the proper growth will only happen in 3-5 year span.
I buy to hold, so the swings either way don’t worry me much.
Does anyone else think it’s fishy that Cook sold tons of stock just before this tank?
I mean he does know the financial dealings... But it really is minuscule... Apple losing 6% is big but its not unusual. If the global economy tanks 20%- of course Apple losing 20% of 2$ Trillion sounds like a lot. But people wouldn't say the same thing back then when Apple was worth less than a trillion. Its just 6% of 2$ Trillion is technically the largest loss, so that's why this is even news.
As has been covered previously in this thread, sales like that are pre-scheduled and pre-approved months and moths ahead, so there wouldn't be any realistically possible future knowledge to somehow base them on.
lol..probably... if it keeps crashing you will..
Maybe its a lesson learnt by Apple, "Be careful what you wish for"
A lot of the "tech" industry has share prices which can never plausibly be justified by dividends or assets, the value is only justified by the expectation that someone will put an even more insane valuation on it. The actual high-tech part of the tech industry isn't so overvalued, but they got caught up in the market's reaction to a small correction.
What no? Big sales can also be many small sales... It’s the market.. You can sell $50,000,000 stock without months approval for example.
That's not what happened with Tim Cook's recent sale, and not how it woks when it comes to someone in a position like that of Tim Cook.
Oh right. But it is what could have happened to the 6% loss. Sorry you were quoting me and I was confused why.
Mr. Cook can sell large amounts of stock - e.g, $50 million worth - without pre-approval. He doesn't need pre-approval. Generally, the SEC wouldn't know about stock sales by insiders until those insiders report those sales after the fact.
Insiders just need, to protect themselves from insider trading charges, to have plans in place that spell out the conditions under which sales will be made. Such plans might say... sell X number of shares on Y date or... sell X number of shares when the trading price hits Y or... if shares fall more than 10% from a peak trading price sale X number of shares. They can provide all kinds of instructions for when shares are sold. An insider can also give authority to decide when to make sales to someone else who wouldn't, at the time sales would be made, have access to material non-public information.
But those plans don't need to be filed with the SEC.
At the very least there are typically internal financial/legal reviews and approvals that would be in play, in addition to limited windows as to when things of that nature can be done. Which makes sort of immediate sales based on some knowledge of something that's coming -- like those brought up or implied in various posts -- quite hard and at best troublesome to pull off. In the context of this thread it's not the kind of sale that took place.
Certainly his share sales haven't been spontaneous and I don't think they've been motivated by anticipated declines in the share price. This has been pointed out quite a bit.
Technically he could sell shares at any moment, without having planned them in advance. But doing so would open him up to insider trading allegations and possibly charges. So he, like most insiders, has a trading plan in place.
The only thing that really matters is that sales aren't based on material non-public information. So, in theory, whatever material nonpublic information an insider has at the time they made a plan should no longer be material nonpublic information at the time the sales based on that plan are made. Maybe a plan is put in place a month ahead of time, maybe it's put in place 2 years ahead of time.
That might not even be a possibility depending on how things are set up as there might only be certain windows when sales can be made and even then they might require some sort of (internal) approval before anything can happen -- not just simply procedurally speaking, but in the sense of that things would have to actually be unlocked before a sale can take place.
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Only if you don’t understand how executive sales of stock work.
Investors got scared that SoftBank is going to dump the market. Overblown fear because that’s only their Call options. They still have a sizeable new stock position that they will want to see gain value.
Others have been cashing out their tech positions slowly for the last two weeks and investing in downtrodden cyclical companies such as VF Corp, Gap, Capri etc.
It’s a normal cycling and there is no current reason for fear. Finance journalism likes to stoke fear so they can force you to cash out and then they grab stocks cheaper.
You only need to be fearful if business is no good or global political events have a negative outlook.
Others have been cashing out their tech positions slowly for the last two weeks and investing in downtrodden cyclical companies such as VF Corp, Gap, Capri etc.
It’s a normal cycling and there is no current reason for fear. Finance journalism likes to stoke fear so they can force you to cash out and then they grab stocks cheaper.
You only need to be fearful if business is no good or global political events have a negative outlook.
Did you sell or is your stomach churning even more given this morning's stock price? 😁
The last month tech sold off and money flowed into reopening stocks that were seen as very underpriced - fashion, property, airlines, etc.
If there are renewed lockdowns then the money will rotate back into tech and ‘stay at home stocks’. Hence the Dow is now down 600 points and while I write this the tech sector is climbing back up.
It will continue to be volatile for some time yet.