Apple Stock Opens Down 5% on Steve Jobs Leave of Absence

[MacRumors]

Apple's stock opened for trading at $327.05 per share this morning, down over 5% from its close on Friday, with the dip clearly related to Steve Jobs' announcement that he will be taking a new medical leave of absence from the company. The stock has been rebounding in the few minutes the market has been open for trading, however, and currently sits at about $336 per share, or down 3.5%.

Apple appears to have strategically released the news of Jobs' leave yesterday morning on Martin Luther King, Jr. Day, a U.S. holiday when the stock markets would be closed and would give investors a day to absorb the news before making moves with their holdings of the company's stock. Apple's stock was being traded on the Frankfurt Stock Exchange yesterday, closing down about 6.6% and offering observers an expectation of what would happen this morning.

Another factor likely playing into Apple's timeframe for announcing Jobs' leave is the company's quarterly earnings announcement scheduled for after the close of the market today. Apple is widely expected to beat analyst estimates, performance that could offer the company's stock a lift to at least partially offset today's decline on Jobs' health worries. We'll have full coverage of the earnings release and accompanying conference call, where analysts are certain to question Apple executives seeking to learn more about how the company will be run during Jobs' absence and when we might expect him to return.

Article Link: Apple Stock Opens Down 5% on Steve Jobs Leave of Absence

 

[Simsonic]

Options

I just bought a crapload of calls when it hit 330. Wohoooo.

 

[WiiDSmoker]

And it'll skyrocket when the iPad 2 and iPhone 5 is revealed. And earnings are today too I believe so it'll go right back up.

 

[nexsta]

good time to buy?

 

[Eso]

I just bought a crapload of calls when it hit 330. Wohoooo.

Hopefully not January calls (they expire in three days)

 

[0815]

Well, yes - that was to be expected. Still don't get all the 'investors' how they react to every cough of someone.

But we can be sure that stock will re-bounce once a new record earnings quater is announced. Than the iPad2 is around the corner which will propel the stock price some more. Once it's flat again, the iPhone5 will be announced again.

 

[mikenzb]

Hmm

 

[Geckotek]

Well, yes - that was to be expected. Still don't get all the 'investors' how they react to every cough of someone.

But we can be sure that stock will re-bounce once a new record earnings quater is announced. Than the iPad2 is around the corner which will propel the stock price some more. Once it's flat again, the iPhone5 will be announced again.

At these prices, it's a purely emotionally driven stock anyway.

 

[coopj12]

Timed, Indeed

Just like everything Apple does, this was a perfectly timed strategic announcement. Good for them.

 

[mcalevy]

Congrats

I just bought a crapload of calls when it hit 330. Wohoooo.

I simply cannot believe the mindset of the sellers who sold apple stock when it dropped 5%. Verizon, iPad2, iPhone 5. That simply is not a stock with a downside potential.

It's like Jobs said when the had the antenna problem when asked a stupid question. "well, we are still selling them as fast as we can make them!"

 

[rdowns]

To be expected. Silly knee jerk investors. Apple managed this well. While it opened down 4.6%, it has already recovered 25% of the loss. I bet it ends the day down no more than $5 from Friday's close.

I then expect it to explode when Apple announces earning later. Based on my little AAPL online group, we're forecasting revenue of $25.7 billion and EPS of $6.29

 

[NebulaClash]

good time to buy?

Yes. Apple stock will crash when the overall market crashes, but until then it should go up. There will be volatility today because of the Jobs news and then earnings reported tonight. But overall the news is good for Apple, and thus the stock will go up in at least the short term.

 

[deputy_doofy]

I just sold a handful of shares myself. Because it's an emotionally driven stock and could REALLY plummet for no reason, I'd rather lock-in the money and throw it into my AAPL "savings account," since I don't have enough shares to ever get rich anyway.

It can get $#!tty interest and be available for my next number of Apple purchases. I still have a small amount of shares left and I still buy fractions of AAPL every month.

 

[HyperX13]

To be expected. Silly knee jerk investors. Apple managed this well. While it opened down 4.6%, it has already recovered 25% of the loss. I bet it ends the day down no more than $5 from Friday's close.

I then expect it to explode when Apple announces earning later. Based on my little AAPL online group, we're forecasting revenue of $25.7 billion and EPS of $6.29

Yeah people look at history. Last time Steve Jobs went away, Apple almost disappeared. Explains the jitters.

 

[nylonsteel]

Interesting
aapl reaching new highs going into earnings - SJ health news yesterday - then earnings 2pm pst today
quite tumultuous
anyway - thanks aapl and SJ for making my portfolio a bit fatter last year
Get well soon Mr Jobs
Luv ya aapl - trading both ways

 

[Xian Zhu Xuande]

Not a bad time to buy. It will go down if more bad news with Steve breaks or if the market does badly, but generally speaking there's no reason to expect the company's progress to slow with the Verizon iPhone (CDMA for possible other locations), iPhone 5, iPad 2, and any other products that come out...

At these prices, it's a purely emotionally driven stock anyway.

In what regard?

Yeah people look at history. Last time Steve Jobs went away, Apple almost disappeared. Explains the jitters.

Except the circumstances aren't related at all.
But the market doesn't have to be rational.

 

[DTphonehome]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

AAPL soared under Tim Cook on Steve's last leave. I'm sure it'll continue to do great under him again. And eventually when Steve steps down for good.

 

[deputy_doofy]

I have no fear of Apple crumbling without Steve. Surely, top management sees how Apple has fared compared to other companies in the tech sector and against the recession in general. As long as Apple continues to do what it does, I expect nothing from the best. Besides, I have no doubt that they hire people with vision to keep the culture alive. The only difference is, Apple has a person with vision running the ship and being allowed to have a voice. Microsoft has people with vision working the mail rooms...

 

[NebulaClash]

Yeah people look at history. Last time Steve Jobs went away, Apple almost disappeared. Explains the jitters.

The last time Steve Jobs went away was 2009, and the stock did great.

But you meant back in the 1980s, and there's no comparison to the Apple then and the Apple of today. Apple is in no danger of disappearing even if Steve Ballmer were in charge.

 

[Simsonic]

Earnings

Wait until earnings comes out this afternoon. The stock is going to gap up after hours and gain back 5%. The same thing happened in 2009. Apple is just way smarter than the average person/investor!

 

[apple1990]

Just lost a grand on my other all portfolio value, not been a good week as I also hold merck shares.

Just bought some more AAPL though. Wish I'd sold on friday when I was going to, but hey ho you can't win them all.

 

[rdowns]

Yeah people look at history. Last time Steve Jobs went away, Apple almost disappeared. Explains the jitters.

Are you referring to Jobs leaving Apple in 1985? Nothing about this is similar.

Look at AAPL when Jobs was on medical leave. It dropped on the news and then went back to soaring. Tim Cook is a fine steward for Steve's chair. Contrary to popular Internet memes, Jobs is not a one man show. He has built, arguably, the best management team of any company.

 

[apple1990]

Are you referring to Jobs leaving Apple in 1985? Nothing about this is similar.

Look at AAPL when Jobs was on medical leave. It dropped on the news and then went back to soaring. Tim Cook is a fine steward for Steve's chair. Contrary to popular Internet memes, Jobs is not a one man show. He has built, arguably, the best management team of any company.

Exactly, Steve is a genius but that doesn't mean he is running the business singlehandedly. Hes the visionary and doesn't need to be there 9 to 5 every day to do that job. He has build a management team to lead the company for the next 30 years and beyond, with or without him.

 

[Simsonic]

Sarcasm

Are you referring to Jobs leaving Apple in 1985? Nothing about this is similar.

Look at AAPL when Jobs was on medical leave. It dropped on the news and then went back to soaring. Tim Cook is a fine steward for Steve's chair. Contrary to popular Internet memes, Jobs is not a one man show. He has built, arguably, the best management team of any company.

I think he/she was being sarcastic! Let's all laugh a little!

 

[deputy_doofy]

Exactly, Steve is a genius but that doesn't mean he is running the business singlehandedly. Hes the visionary and doesn't need to be there 9 to 5 every day to do that job. He has build a management team to lead the company for the next 30 years and beyond, with or without him.

Agreed. People don't seem to understand that Apple does not run like any other business. People were hired and kept because they understand how things run at Apple. That understanding and culture can be kept alive long after Jobs. As long with people with vision can be heard, Apple will succeed.