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Apple Stock Tanks: Biggest Drop in Seven Years

What do people think of RIMM? It's down to $61 from a high of $150 this year...As much as I love my iphone, blackberrys aren't going anywhere and while market share might move a little bit, it could still be a good time to get in as well for the long term.


Holding onto my aapl ($30, $50, $180) for now, might buy some more in the next week or two, let's see where it goes.
 
Who likes soup?? I can't wait for some free soup.....

My girlfriend texted me today:

"We can always stand in the soup line and grow veggies together until you go off to the war we'll need to fix the economy. I'll start researching gardening."

and I replied "I'll start researching the Yukon Territory..."

Yikes. Time to move to Canada. They're freaking out on the news and in the articles I've read online, they both say its only going to get worse.

I'm afraid that other countries that don't really like the U.S., like Russia, Iran, N. Korea, Venezuela, and China will see this opportunity to take us out. Our "allies" won't help us either. They will just be passive because they won't want to get entangled. Pretty much everyone hates us.

*sigh*

Looks like I'm not going to be able to finish college. :( Time to go pull all of my cash out of the bank. I have a feeling, with all the banks epically failing, that the FDIC will be tested like never before...and that it might not work as promised. I know lots of kids on campus who are thinking about doing this, and they are also stockpiling canned food and this one kid I know even bought a water purification system.

I'm usually a pretty stable person too.....but yikes, this is bad. I'm genuinely concerned.
 
AAPL is on SALE baby. Think long term, buy when you feel comfortable, stick your head in the sand, surface 30 yrs later.

It'll be good folks. I'm in for a deal.
 
macduke said:
Who likes soup?? I can't wait for some free soup.....

My girlfriend texted me today:

"We can always stand in the soup line and grow veggies together until you go off to the war we'll need to fix the economy. I'll start researching gardening."

and I replied "I'll start researching the Yukon Territory..."

Yikes. Time to move to Canada. They're freaking out on the news and in the articles I've read online, they both say its only going to get worse.

I'm afraid that other countries that don't really like the U.S., like Russia, Iran, N. Korea, Venezuela, and China will see this opportunity to take us out. Our "allies" won't help us either. They will just be passive because they won't want to get entangled. Pretty much everyone hates us.

*sigh*

Looks like I'm not going to be able to finish college. :( Time to go pull all of my cash out of the bank. I have a feeling, with all the banks epically failing, that the FDIC will be tested like never before...and that it might not work as promised. I know lots of kids on campus who are thinking about doing this, and they are also stockpiling canned food and this one kid I know even bought a water purification system.

I'm usually a pretty stable person too.....but yikes, this is bad. I'm genuinely concerned.
Click to expand...
No point in pulling money out of the bank-- where we're going, money has no value unless you can eat it or beat someone over the head with it.

My only advice is this: when you do decide to flee the wasteland make sure you keep that girl at your side-- she's got the sense of humor you'll need to get by.
 
rfrankl said:
I know its not Apple's job to defend every rumor, but management never does anything to support the stock. They just feel the price will take care of itself. That is true in the long run, but it sure gets jerked around in the short term.

But what bugs me more is they never buy back any shares like most cash heavy tech stocks do. At today's price, they could use just $5B of their roughly $25 to purchase back 5% of the company and reduce the float by 47 million shares. Yes, they couldn't get all those shares at today's level without driving it back up some, but they never even purchase any shares back. That drives me crazy. When the stock is overdone, like it has been before, use some of that cash to buy back shares. You are going to earn that $5B back in the next year or less.
Click to expand...

What purpose would buying back shares serve? For $5bn, Apple could take 50 million shares out of the market, but the value of the company would drop by $5bn, so no difference at all. All these buybacks didn't do Dell any good.
 
macduke said:
Who likes soup?? I can't wait for some free soup.....

My girlfriend texted me today:

"We can always stand in the soup line and grow veggies together until you go off to the war we'll need to fix the economy. I'll start researching gardening."

and I replied "I'll start researching the Yukon Territory..."

Yikes. Time to move to Canada. They're freaking out on the news and in the articles I've read online, they both say its only going to get worse.

I'm afraid that other countries that don't really like the U.S., like Russia, Iran, N. Korea, Venezuela, and China will see this opportunity to take us out. Our "allies" won't help us either. They will just be passive because they won't want to get entangled. Pretty much everyone hates us.

*sigh*

Looks like I'm not going to be able to finish college. :( Time to go pull all of my cash out of the bank. I have a feeling, with all the banks epically failing, that the FDIC will be tested like never before...and that it might not work as promised. I know lots of kids on campus who are thinking about doing this, and they are also stockpiling canned food and this one kid I know even bought a water purification system.

I'm usually a pretty stable person too.....but yikes, this is bad. I'm genuinely concerned.
Click to expand...

Just be extra careful with money, and don't worry too much about it at the moment.


Whole world is feeling the squeeze, not just the US. Iceland, Germany, the UK etc are all going through similar issues financially.

Without doubt it is going to be a long while before things settle, but they will eventually. I am taking a punt at this lasting for about 18 months.
 
The market had a dive pretty much all accross the board. I think this has less to do w/ Apple than it does to do with the larger markets.

Remember, buy low - sell high.
 
i would agree with the analysts' decisions to downgrade a little bit.

everyone is tightening up finances and no one wants to spend. getting a new computer or ipod seems secondary (or should be) to the necessities (food, shelter, utilities, etc.)
 
I've seen this stock swing about $40 bucks in the last two weeks. I'm sure you've got plenty of people selling as well as the market "manipulators" dumping shares only to buy them back at a lower price.

I don't really think the cut in consumer spending will affect Apple as much as other retailers considering the desire for Apple products. iPhone sales are strong, Mac sales are strong, their music business is topping the charts, and they've got a new OS in the pipeline that will really blow the doors off Windows in terms of speed and security.

As for the economy, all I have to say is the Great Depression was caused by the FED's inability to act quickly. They're definitely making us sweat!
 
IJ Reilly said:
Anyone who thinks they know when a stock is "overpriced" is deluding themselves, and possibly others, if they listen. The markets decide what a stock is worth on any given day. This is their sole function. The market price is the only price that matters. Everything else is just guessing.
Click to expand...

After the raping of our banking institutions, who the hell cares what any stock analyst has to say?

This is a GOP and DEM problem. They don't seem to see that we the sheeple want heads to roll... specifically those FreddieFannieMaeMac liars.

No golden parachutes please. Only GOLDEN JUMPSUITS for these thieves.

Wish both Bama and McCain would realize our bloodlust for the heads of these companies.

Apple is probably the only thing besides oil and gold I'd invest in.

Scr*w those market analysts. They need to go to jail and shut up.
 
gnasher729 said:
What purpose would buying back shares serve? For $5bn, Apple could take 50 million shares out of the market, but the value of the company would drop by $5bn, so no difference at all. All these buybacks didn't do Dell any good.
Click to expand...

When you buy back shares there is an increase in return to the remaining shareholders, ie more money spread between fewer share holders. The value of the stock is not directly related to the cash on hand. The catch would be that if you do a buyback and the company isn't performing then the more cash becomes less cash to be shared.

A buyback can happen when a company (Microsoft) has what is perceived to be lots of money ($45 billion) on hand and little it can do with it, the company buys the stock back and returns the money to the shareholders.

Hopefully Apple's cash on hand isn't directly linked to performance of the stock market otherwise they may not have that much on hand, but assuming the $23 billion is stable, a buyback isn't a bad idea when the stock is low or underperforming.
 
gnasher729 said:
What purpose would buying back shares serve? For $5bn, Apple could take 50 million shares out of the market, but the value of the company would drop by $5bn, so no difference at all. All these buybacks didn't do Dell any good.
Click to expand...

Each person's shares would now be a larger percent of the company and earnings automatically rise by 5% (or whatever percent they buy back) per share without doing anything. Dell's buybacks didn't do anything because they are getting hurt by Apple and HP, in addition to the fact they have too many shares outstanding now because of all the stock splits for any buyback to make a difference. Same goes for MSFT, CSCO, INTC, etc. They have billions of shares outstanding where Apple only has 885 million or so.
 
Comparison to 1929 Crash

For those who are predicting the next great depression - here are some comparisons:

From May to yesterday the market has lost 15% of it's value, from September 3rd 1929 to October 28th, 1928 the market lost 17% of it's value.

The great crash was over 3 days - 12%, then another 15%, then another 12% - today was just 7%

Yeah - this hurts and credit is going to get really tight for a little while. That being said, the earlier comment about businesses borrowing to pay salaries isn't something I would worry too much about - because big businesses do that with commercial paper and a line of credit backup and small businesses tend to do that just with a line of credit. Unless they default on their credit lines, they're probably okay and so are we.

Now is not the time to panic. But at the same time, it's also not the time to buy too many things you don't need - maybe the ibook can be fixed or the ipod touch doesn't need to be upgraded today, eh?
 
Apple stock has cratered 50% - based on....... The stock has been hammered as if it were a "dot com" bunch of BS.

It is one of the best and strongest companies out there.

Damn to hell the people that conceived and launched the no doc loans based on Freddie Mac and Fannie Mae encouragement to get people in homes that they could not afford in the first place.

:( :( :(
 
For the overall stock market, alot of the volatility today was around the House defeating the bail out bill, the market was all over the place, was holding a level around -400 to -600 and then towards the end of the day it really stayed off -700 and more. It went below -700 points at least one other time during the day, early in the house vote it went down to -705.

Right now the market is wanting, demanding, begging etc for the House & Congress to get a bill through in triple time to free up the credit markets so that lending at more normal levels is possible. If we see some decent action tonight/tomorrow in regards to this requested action then we should hopefully see a boost to the US market and help is recover some of the losses.

If any of you follow the markets, Australia and then Japan and Hong Kong should be the first major ones to reopen after the US market, Australia has dropped 2.7% in the first 5 minutes of trading. And now down 3.4% in 10 minutes.
 
Apple Corps said:
Apple stock has cratered 50% - based on....... The stock has been hammered as if it were a "dot com" bunch of BS.

It is one of the best and strongest companies out there.

Damn to hell the people that conceived and launched the no doc loans based on Freddie Mac and Fannie Mae encouragement to get people in homes that they could not afford in the first place.

:( :( :(
Click to expand...

You need to keep in mind that the more people who buy a specific stock the higher the stock price will go, demand increases the stock price (amongst other things), so if Apple is stock of the year and everyone wants Apple, Apple stock goes up, at a certain point the stock becomes overvalued, people no longer see value, or they become fearful of the stock dropping in price and they will lose money. All of this can occur regardless of strong/weak a company really is. Apple in and of itself is a strong company that we do not have to worry about going bankrupt, it is more the market as a whole having issues, concerns about Apple selling high(er) priced goods in a weak economy where people make conservative purchases etc.

Take a look at the financial stocks today:
http://moneycentral.msn.com/investor/market/losers.aspx
Wachovia: down 81%


Australia is going well heading towards 6% market loss in 20 minutes... looks like they may stop at 5.5% for now.
 
Anyone following the current state of affairs saw this coming, and it isn't going to get better.

I know it's hard to imagine this in our industrial society, but imagine the "industrial" part being taken away.

Then imagine how the earth can only sustain about 1/6 of the human population without industrialism.

Put two and two together and...
 
how is it going down when the mac market is going up and the iphones are selling like crazy?
 
coolbreeze said:
AAPL is on SALE baby. Think long term, buy when you feel comfortable, stick your head in the sand, surface 30 yrs later.

It'll be good folks. I'm in for a deal.
Click to expand...

Actually, the sad part is, it is true. If you have money in the stock market right now, you are well screwed. If you have money you can put in the stock market and not worry about for a few years - the time to buy is at rock bottom. Now is the time to invest in your 401K's at work, if you can. Luckily most 401k handling corps move your money around for you. But if you invest on your own, then becareful and research thoroughly.

I wish I had a few thousand to invest right now, that I could not forget about for a few years. Think this way. You buy stock aty $160/share and then it tanks, bummer. You buy stock when it tanked and the market starts improving - you can make money over night, thousands. that is what the billionaires did during the great depression.

I worked for a company that well, there stock was only like $1 or $2. I had a friend who invested $10,000. the company did a reverse split and he lost money heavily (had less stock, but it was worth $34 each). The company got better and then his stock split meaning he then had more shares at a higher price. Then it split again and the stock went higher. For his initial $10,000 investment he made over $600,000. took him 5 yrs.
 
IJ Reilly said:
Is the market overall down by that much? I don't think so.
Click to expand...

Actually yeah it is because of the republicans in congress not voting for the bailout on banks. The Dow Jones went down 778 pts (8%), the largest amount ever, and the Nasdaq went down in value 10% today as well. I think we're actually going right into a global depression. The good news is oil went down about 11% today too. It's only a matter of time before I'm paying less than $3 at the pump! Right now its $3.26.
 
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