Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Apple Stock Tanks: Biggest Drop in Seven Years

apple is pretty ****ed up :D
omg look at AAPL market cap NOW... 95.76 B :D
from 160 billion too 95.76 B ...
holy **** :D
 
needthephone said:
In Australia we seem OK, mortgages or loans were not dangled infront of people with no hope of paying but with the hope their homes would go up-to pay off the mortgage. That was criminal and masterminded by the American Government to create a non sustainable very bursteable property bubble.
Click to expand...

At the macro level (savings, deficit, loan to income rations etc) Australia is in worse shape than the US...AND...the great Aussie banks were borrowing from the US and re-lending that money in OZ.

Without a reserve currency that is a dangerous game to play...and thats why interest rates are almost 4 times the level in the US! Its a true measure of the risk in the Australian economy...


Think Aussie Home Loans, 107% loans...what happened there?


Macs are discretionary items in that you don't need them, in a recession discretionary spending gets hit hardest. US of A is in a recession, you can be sure of that.

People who NEED a new computer will be moving towards Dell because thats all they can afford. Most people will decide they don't need a new computer, that costs them nothing.

Macs are nice, but most people don't NEED them...
 
I was looking at google finance today and it showed AAPL as dropping to 21.40 sometime to day. I thought how could that be thats one hell of a crash. But apparently it was just a glitch its back to normal now
 
IJ Reilly said:
Technical analysis is advanced number crunching. It's got no root in any other reality.
Click to expand...

HAHA can I quote you for an other forum?

Love it!


image.php
 
Apple deserves to be lower

I can't understand why this stock is so high to begin with.

Let's be honest, the largest money maker for Apple is their desktop products. And we all know how crappy the build quality is on the iMacs.

Not only that but hang out at the Apple Store around lunchtime and you'll see how many products come in that are failed and need to be replaced.

Apple simply can't continue to make a profit if they are forced to replace customer's products.
 
vampyr said:
I can't understand why this stock is so high to begin with.

Let's be honest, the largest money maker for Apple is their desktop products. And we all know how crappy the build quality is on the iMacs.

Not only that but hang out at the Apple Store around lunchtime and you'll see how many products come in that are failed and need to be replaced.

Apple simply can't continue to make a profit if they are forced to replace customer's products.
Click to expand...

I don't really think that Apples failure or replacement rate is any higher than other major companies if you look at their overall popularity. Sure, the more products that you sell the more chance your are going to have broken or defective one -- but they hold such a large piece of the market that they sell millions more than their closest competitors -- so obviously they have more defective ones.

Apple knew their stock price was going to take a hit, they even announced it would happen a few months ago before it actually did happen.
 
rockosmodurnlif said:
your "another local news agency" turns out to be some guy's blog.
Anyway Wachovia didn't fail and was in merger talks since the beginning of this month with other banks because they had a lot of the ARM-mortgage debt that the market isn't looking too favorably on right now, which was causing the share price to drop. There was no exodus of money, their bond rating suggested the general thought was a 63% chance of them failing in five years. Much of this failing talk is coming after the fact.

What you have is the FDIC not wanting to be on the hook for the deposits so they encouraged a merger between the two banks, agreeing to cover losses in excess of what Citi is willing to cover. Regulators didn't take over the bank, the government basically stepped in a situation already being negotiated out of speculation, out of fear of collapse. Specifically because of WaMu's failure.
Click to expand...
Turns out I was wrong. There was a "silent run" on the bank, with large deposits being reduced to below the $100,000 FDIC insured limit. It didn't fail but there was doubt it would have access to funds when the bank opened on Monday. More.
 
Panic Not

there is no need to panic. Duing the past couple of months samsung, Google and now Nokia have announced rivals to the iPhone. What a rediculous time to launch a new product. All of these products will fail - not because they are bad products but because of the economic downturn. When we emerge from this mess, the only product of its kind that people ill remember is - you guessed it, the iPhone.

The iphone has legs people and not will it only carry itself it will, as has been shown over the past number of months, carry Mac computers. No, this is neither a time to worry nor a time to sell. Hang tight and ride it out people!
 
If congress goes along with the wall street bailout, main street will sell everything it can and keep the cash or buy gold or Canadian real estate or anything but stocks and bonds. :eek:

If congress gives any hint that our representatives will NOT bailout wall street, then today, the stock market will go up, up ... up.

This is not rocket science anymore: the markets are direct indicators of public sentiment about the bailout ...
 
Thanks you, thank you, thank you very much ...

I see that Barney Frank's TV appearance on Fox news turned everything around. Hope you all survived yesterday.

And that Canadian stock pundit that first announced that Apple stock was "downgraded", then spread rumors of Steve Jobs' demise were proven to be wrong headed as well.

I can't lay claim to anything but misinformation and poor judgement in my predictions, but it should be obvious to all here that someone with the media's ear has it in for Apple and the company's stock value. :mad:

"Wait and see ... "
 
jbernie said:
As stated many times, Apple itself is just fine, they have little to no debt and significant cash on hand, but that does not determine the stock price. Sitting on lots of cash and doing nothing is no different than sitting on no cash and making bad decisions as there is no value to the stock holders and thus the stock goes down.
Click to expand...

This is one of the reasons that the stock is so volatile. The Apple management team, including Jobs, are not fit to run a company with a $200B market cap. And they know it. The market knows it too. That's why they got sold down to the present level, even with these fundamentals.

Sitting on $22B in unutilized assets is inexcusable.

It sends a pretty loud message that they don't have any more ideas. "We're saving it for a rainy day" is what you hear on the earnings call. Please. Up R&D or cut me a dividend check. You obviously can't defend the stock's price.

They invest all the company's talent to build iTunes to distribute music, which is very LOW margin.

No roadmaps, no enterprise outreach that is credible. No public succession plan. Nothing. That's why Apple has fallen so much more than the market. They behave like a cult, not a Fortune 100 company.

And it's all for the twice a year, standing room only:
Steve Jobs Dog & Pony Extravaganza :apple:

"Surprise, it's another iPod! It Oh-to-matically updates <some dumb new feature>, and it's the best mp3 player in the world, blah, blah, blah."

This has now gotten to the point of breach of duty. This company has lost half its market value in less than a year without any change in profitability. That is quite an accomplishment.

Apple's culture of secrecy may have served it very well to get it to this size but it is a fundamental limit to it being a secure investment or the mega large cap company that it flirted with earlier this year.

At the very least, they could roadmap their existing product lines, and reap some enterprise credibility and only let the Dear Leader do his peacock dance when they come out with something that's actually new.

Sorry, I'm just tired of watching them standing at the plate watching the pitches go by.

The MobileMe/iPhone 3G mess exposed deep problems in Apple, a company that can't deliver on its promises because information flow is so constricted. No one is empowered to tell Steve no, even when what he demands is impossible. It used to be cute, and it makes great mythology, but the RDF is taking its toll.
 
Buy Canadian Real Estate? thats the worst idea, at least in Vancouver. Everyone is buying American real estate because of the housing and mortgage crisis.
Canadian housing in major cities are at one of their highest periods, especially in Vancouver due to the 2010 Olympics.

worst predictions ever.

They will be investing in american real estate, not canadian.
 
LOL! "Dear Leader"....perfect.

I have noticed that, despite Apple's minor increase in market share, no one in their right mind is predicting sustained increases in Apple's market value. I wonder how much longer Dear Leader will be able to rule with an iron fist and claim everyone else's ideas as his own?
 
markgamber said:
LOL! "Dear Leader"....perfect.

I have noticed that, despite Apple's minor increase in market share, no one in their right mind is predicting sustained increases in Apple's market value. I wonder how much longer Dear Leader will be able to rule with an iron fist and claim everyone else's ideas as his own?
Click to expand...

That's the crux of it. Another way to look at it is: what does Apple or its shareholders gain by perpetuating the illusion that one guy is this vital?

Give coverage to Scott Forstal, Ive, Serlet...OK maybe not Serlet, but whoever you need to in order to give the public the signal that Apple isn't Jonestown. This thing is too big to sustain this fairy tale anymore.

Obviously, Jobs has a real talent for recognizing the change about to happen and getting out in front.

Touchscreens on phones.
Not invented by Apple, but made superlative by them.

GPU based processing.
They might get in front of it with OpenCL but again it's just slapping the logo on first.

Not in the ballpark of the beginning of Apple, which was the revolutionary idea that people could own their own computer. In order to be a real idea factory, there probably needs to be an equity carve out and free some people from 1 Infinite Loop and the iTunes brigades.

A year ago I thought that Apple had put together the pieces to truly change the future of computing. To take on Microsoft--but they're too scared. Now I think they just want to sell iPods and iPhones.
 
kjs862 said:
When should I buy?
Click to expand...

When all the fanboys around here come to realise that Apple, with a market cap larger than IBM or Microsoft or Dell, but smaller sales...is over priced. (IBM's revenue is 3 times that of Apple, and its numbers look better)

Quick calc shows that 20B in cash - 12B in liabilities gives around $10 per share, so mark that as a theoretical low.

Try 50 dollars, I might even buy some at that price :D

A company with 20B in cash is a company that is short of ideas...this is what I see, Apple does not know what to do, where to go. Quite possibly Apple is as big as it is going to get. Compare that to IBM; consulting, data centers, super computers, servers, software...big difference really.

Apple is dependent on consumer discretionary spending, IBM (for example) has business spending AND government spending. Guess who survives a recession better? He who can capture government deficit spending/stimulation either directly via defense spending (super computers) or indirectly by business spending.
 
Pure baloney. Stocks are priced mainly on the basis of earnings, present and expected, not revenue. Large multiples on current earnings are common and justified if earnings growth is commensurate. For many years running, Apple's EPS growth has justified a large multiple. If you don't know that much about how stocks are valued, then you should probably be staying clear of the markets, and you certainly should not be advising anyone else.
 
" ... When all the fanboys around here come to realise that Apple, with a market cap larger than IBM or Microsoft or Dell, but smaller sales...is over priced. ..."

" ... Stocks are priced mainly on the basis of earnings, present and expected, not revenue. ..."

Very astute ... absolutely correct on both counts ... except for one thing:

Apple stock has always been and is "over priced" ... since day one. Some may remember that Apple stock was "banned in Boston" at its IPO because of these very reasons = exuberant display of excitement by "fanboys" and "fangirls" alike.

One item overlooked as well: Apple as an operating company has always carried a handy if occasionally excessive piece of change in the cooky jar = lots of "free cash flow", lots of buying power on the balance sheet.

For this reason alone, Apple stock is still a "buy" ( http://finance.yahoo.com/q/ao?s=AAPL ... http://biz.yahoo.com/t/18/4013.html ... All bottom lines are "in the green": http://finance.yahoo.com/q/is?s=AAPL&annual ... http://finance.yahoo.com/q/bs?s=AAPL&annual ... http://finance.yahoo.com/q/cf?s=AAPL&annual )

This huge and constant cash stash is how Apple was able to "bailout" Samsung and other Korean and other Chinese companies when the Seven Tigers needed it a few years ago = gobs of cash and credit-ability and a fat balance sheet. (Apple placed long term purchase orders for Samsung monitor parts and offered bridge loans to many oriental suppliers during the melt down of the Tiger currencies ... and after a few months, everything stabilized and then = up, up and away.)

" ... When should I buy? ..."

Wait until the DOW does another "dead cat bounce" and the North American equity markets stabilize ... a few days or even a few weeks from now. Do Not Try To Get In On This Apparent Bottom !!!! ... Do Hold What You've Got ... Do Not Sell In A Panic !!!

This market is being driven by uncertainties (as always) ... so stay on the side lines and hold your water. (SEC has imposed short sell rules, markets rebounding slightly this AM. DOW still down ~ -500.)

(At a good point ... watch the election polls and when one or the other candidates becomes the obvious winner, a whole lot of the uncertainties will begin to disappear. If that means waiting three more weeks until the actual election, so be it. Vote your pocket book, but don't throw away the good stocks just 'cause your guys and gals are losing in the polls or in the markets.)

Keep the Faith = you all know that Apple produces superior products and will continue to do so. :rolleyes:

Of significant interest: "iPhone Sales Drastically Surpass Q4 Consensus; Apple Reaches 10m Goal"
 
Today. I just want someone to hold me and say everything is going to be okay.
Please.
Anyone.
:sniff:

I would like to move this discussion to the Official: AAPL Consolation Thread.
 
amac4me said:
The market has not yet bottomed. My analysis shows that we may see a market bottom in the week of October 6 (so any day between the 6th and 10th).

If people think the market was bad today, just wait ... in my humble opinion of course! I agree with Phil A, Apple will dip below $100. The market is pricing in expectations. Apple's pricing structure doesn't favor the current and upcoming economic conditions.

Consumers are going to face a direct hit as a result of this credit crisis. Borrowing will be difficult moving forward (expect banks to clamp down on borrowing) and as we know, most consumers in the U.S heading into the end of the year use their credit cards.

Ultimately is boils down to mindset. When people feel good about the economy and their finances they tend to spend more. It's a by product of the wealth effect. Housing prices are down, the market is down, so people's mindsets are directly impacted. This will have a direct effect on spending.

So who will get hit heading into the end of the year? Apple and other luxury manufacturers. Don't expect a great holiday season for the retail industry.
Click to expand...

Unspeaked said:
Just out of curiosity, what makes you think we'll see a bottom so soon?

I don't see any reason to think things will be any different a week or month from now than their are today.
Click to expand...

amac4me said:
My analysis is based on technical indicators, patterns, and price projections. From those dates I indicate, I expect to see a recovery rally. We'll have to wait and see how this all plays out. So many externalities in the market recently!
Click to expand...

Ok folks, so far the market action is playing out as per my predictions as detailed above. I indicated that the market would get much worse.

We are now in the week of October 6. Note the prediction I made on September 29. The market is spiking lower, we'll have to wait and see if the market finally finds some footing at Dow 9300 - 9500 level. I accurately predicted that APPL would fall below $100. As of this posting, it's at $90.

In my view, unless Apple makes changes to their pricing structure they'll have a hard time moving product this holiday season. People are going to clamp down on spending and if they need a computer will probably opt for a lower price point. This would negatively impact Mac sales and this is what the market has been pricing in for Apple's stock the past several weeks.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back