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Apple Stock Tanks: Biggest Drop in Seven Years
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You only lost money if you sold the stock. Likewise when the value is up you are only rich if you sell. All that I really care about is the value of my investments at the time when I need to sell them. Today I see the massive drop in price an a "bargain".
Price drops are good the buyers
No, it reflects what they think the value of the stock will do in the future. Especially if a company doesn't pay dividends.
Hmmm...then gold? Rice Crispie Treats? Who knows what the currency shall be after the downfall of the United States of America?
I will keep her by my side. She is my sunshine in the dead of winter. We have already agreed to elope if things do get that bad.
I hope it doesn't.
Anyone want to trade a Canon 100-400L for a sandwich?? Anyone? No takers? I guess I could use it as a club...
Apple needs to update a computer like the Mac mini immediately and make it more compelling. They also need to drop prices across the board. If they don't, there will be way more pain ahead. Things are going to get worse before they get better with this economy.
The joke is on you. Mattress stocks also went down today.My mattress is looking better and better...
Holy crap. This is much more than just Apple today.
CNN is reporting that the Dow Jones suffered the biggest single-day drop in it's history. It's history! A nearly 778-point drop.
The bailout bill failed to pass in the house today also. Everyone is panicking now.
Point drops are meaningless. Percentage drops are what is important.
Just like Google losing 33 points is not the same as Apple losing 33 points.
I was just thinking about this. Yes, Apple Inc. *should* be considering buying back its own stocks, at least to stabilize the AAPL position, not to mention the future benefit of having a bit more control (i.e. stake) over the company.
Apple does still have a sizeable war chest to buy lots of things. Buying back some AAPL would be one of the wiser moves they can do right now.
AAPL does not care about its stock value even though you do.
JOBS has stated that time and again.
AAPL will free fall like the rest of the market for the rest of the week.
Watch out 401Ker's!!!!
Maybe, but only maybe. One thing they are for certain: terrible for existing shareholders.
And yes, I lost money. A staggering amount of it. With losses that big, it matters not if it's on paper other otherwise. It could take years for my investments to come back to where they were, just as it did before, even assuming they ever do. I've got many stocks that never came back from the last big shakeout, eight years ago now.
I keep asking for the source of all this confidence that this is just a temporary issue. Temporary can last a long, long time. Temporary can outlive you.
They have bought back shares in the past, e.g. when it was in the dumper during the early 2000s. I doubt very much that they're going to do it again.
back to fundamentals
When the market is in bear territory, people start to panic but a smart investor will look into the fundamentals:
So I think 20 times earning is a fair value for a solid growing company during the bear merket so Apple is not cheap but it is not expensive anymore.
Behrang
http://www.beyondng.com
When the market is in bear territory, people start to panic but a smart investor will look into the fundamentals:
- Apple is now in 20 times earnings
- Apple share market is growing
- Apple doesn't have any debt or direct exposure to credit crunch
- Apple iPhone market share id expanding rapidly I see a lot of iPhone here in Australia.
So I think 20 times earning is a fair value for a solid growing company during the bear merket so Apple is not cheap but it is not expensive anymore.
Behrang
http://www.beyondng.com
interesting except that bit.
They may not have any debt, or textbook aspects of direct exposure.
But discretionary spending has hit the wall, and a lot of people will be forgoing new computers, and some even may be forgoing new phones.
When house, energy, and food costs go up, sooner or later it has an effect on non-essential purchases, both at home, and to a certain extent, at work.
I would love an updated mac mini, as someone mentioned earlier, but I don't have the budget for it when my other expenses are going up, and my purchasing power is going down. A new computer is not an essential thing when an existing computer works, so a new computer is on indefinite hold.
That may not be the case for everyone, but I can't imagine that it is rare right now.
Braver (and younger?) than me
This post is half right. Apple does have good fundamentals, good cash reserves (assuming they're not in securitized investments), and has a certain brand appeal that might be handy in a prolonged recession (although the reputation - however flawed - of a price-premium may be problematic).
Trouble is, we're facing more than a recession. We're facing largest de-leveraging and debt-deflationary period in history. This won't be good for any stock. Who knows how much of the former $200/share was on borrowed money? No one, actually. But most of the expansion in equity markets over the last decade has mirrored expansion in debt markets, and a lot of "funny money" underpinned stocks. That party is coming to a horrendous end.
Remember, despite fundamentals, New York square-foot real estate recovered to its pre-1929 levels in 1963. How patient are you? How much longer do you have to live?
This post is half right. Apple does have good fundamentals, good cash reserves (assuming they're not in securitized investments), and has a certain brand appeal that might be handy in a prolonged recession (although the reputation - however flawed - of a price-premium may be problematic).
Trouble is, we're facing more than a recession. We're facing largest de-leveraging and debt-deflationary period in history. This won't be good for any stock. Who knows how much of the former $200/share was on borrowed money? No one, actually. But most of the expansion in equity markets over the last decade has mirrored expansion in debt markets, and a lot of "funny money" underpinned stocks. That party is coming to a horrendous end.
Remember, despite fundamentals, New York square-foot real estate recovered to its pre-1929 levels in 1963. How patient are you? How much longer do you have to live?
yep: when you hear an ad (and they're still running) that says, "bad credit? don't worry. Your credit's good with us." Damn the company, they're just perpetuating the flow of bad loans.
when you hear an ad that says, "Get us to fix your car windshield, and we'll give you a box of steaks free" Damn the company (they're just making the insurance company buy YOU a box of steaks, and thus driving up the cost of insurance)
when you hear an ad that says, "there's a way to have 60% of your credit card debt excused," damn the company, because every time someone does that it increases the cost of credit cards for the rest of us.
And so on. If you don't object to these abuses, you're part of the problem.
If we didn't condemn the companies offering adjustable rate loans good for one percent interest THE FIRST YEAR, we're part of the problem.
and if we didn't condemn the people taking those loans without figuring out they couldn't make payments if those rates bumped to six or seven percent in a couple years, then we're part of the problem.
It's called fiscal responsibility and I'm afraid we better all speak up about it in the future.
As for those idiots who a) changed their votes on the bailout bill because they were offended by a speech, AND then b) admitted it! well, i think God gave them adjustable rate IQs and their rates are plummeting.
If things get really bad, like really really bad (US Dollar plunges in value etc), then what would Apple have to do to stay around?
If things got worse enough, would Apple have to make OSX available on all computers and sell it like Windows? Would that save them (I haven't thought about it - maybe that wouldn't help at all)?
One thing is for sure, this luxury computer thing will have to dramatically change - it will be bare essentials - and Apple will have to find some way to make themselves relevant - perhaps developing markets which won't be as badly affected as the US etc.
If things got worse enough, would Apple have to make OSX available on all computers and sell it like Windows? Would that save them (I haven't thought about it - maybe that wouldn't help at all)?
One thing is for sure, this luxury computer thing will have to dramatically change - it will be bare essentials - and Apple will have to find some way to make themselves relevant - perhaps developing markets which won't be as badly affected as the US etc.
Just as long as the Internet works i'm good.
Worldcom owned about 70% of the domestic internet backbone when they had their dilema. Verizon bought most of it BTW. Apple bought their new telco center.
Remember Worldcom?
Rocketman
At the risk of causing a run on the bakeries, I suggest French bread (which I expect to soon be renamed as Freedom bread). It has the unique property of being both food and bludgeon.
"As for those idiots who a) changed their votes on the bailout bill because they were offended by a speech, AND then b) admitted it! well, i think God gave them adjustable rate IQs and their rates are plummeting."
Well said! My sense is that the political idiots in office are good at getting elected, staying in office, and that is about it. They are throwing around a series of "buzz words" to sound as if they know what is going on:
We need complete transparency and enhanced accountability along with effective oversight to ........
Damn them also - I voted for that freak'n idiot in the White House twice - I'm disgusted and really believe we are witnessing the failure of democracy in such a pluralistic society - government can't get anything done.
Well said! My sense is that the political idiots in office are good at getting elected, staying in office, and that is about it. They are throwing around a series of "buzz words" to sound as if they know what is going on:
We need complete transparency and enhanced accountability along with effective oversight to ........
Damn them also - I voted for that freak'n idiot in the White House twice - I'm disgusted and really believe we are witnessing the failure of democracy in such a pluralistic society - government can't get anything done.