Is Apple's crash precipitating a recession?

Discussion in 'Community Discussion' started by Benjamin Frost, Aug 4, 2015.

  1. Benjamin Frost Suspended

    Benjamin Frost

    Joined:
    May 9, 2015
    Location:
    London, England
    #1
    Shares down 3% today.

    I think we're due a world recession by the end of 2016. I wonder if Apple's weakness is a harbinger of things to come. I've been long Apple since 2010, so want the price to go up. Is it all over, or should I be patient? And who else thinks we're due a big dip?

    Thoughts are welcome.
     
  2. Plutonius macrumors 603

    Plutonius

    Joined:
    Feb 22, 2003
    Location:
    New Hampshire
    #2
    People make money when Apple's stock goes down. After the stock price reaches a certain point, those same people will start buying and the price will go up. If you are long, I would hold (don't sell on a dip like most people :D).
     
  3. Huntn macrumors G5

    Huntn

    Joined:
    May 5, 2008
    Location:
    The Misty Mountains
    #3
    However a good rule of thumb is not to ride a stock down more than 7%, while realizing the day you sell could be the day it bounces back, lol. :D

    Is it wrong to regard Apple stock as existing in a bubble?
     
  4. Spectrum Abuser macrumors 65816

    Spectrum Abuser

    Joined:
    Aug 27, 2011
    #4
    I'm not an expert; my opinions are solely mine and should not be taken as professional advice.

    A single company should NEVER be a determination of an economy. It's exactly the reason we came up with index funds such as the DOW JONES and the SP500. If you track the values of dozens or even hundreds of companies over different industries instead of a single company in one industry you get a much better understanding of the economy as a whole.
     
  5. senseless macrumors 68000

    senseless

    Joined:
    Apr 23, 2008
    Location:
    Pennsylvania, USA
    #5
    It may be because there's nothing super exciting in the pipeline and products like iPad have been slowing. Still a great company, but growth rates of the past are probably unsustainable.
     
  6. BenTrovato macrumors 68020

    BenTrovato

    Joined:
    Jun 29, 2012
    Location:
    Canada
    #6
    Apple almost died, now they rule the world. Neither state is permanent. Economies grow, and economies fail - neither state is permanent.

    I do think Apple's dominance will come to an end but they should be able to ride the momentum they have generated for a while longer.
     
  7. Bonte macrumors 6502a

    Bonte

    Joined:
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    Location:
    Bruges, Belgium
    #7
    People think Apple is becoming a IBM or MS with a one-trick pony but i don't believe so, it is still an innovative and focused company. I'm in for the long run and AAPL is way undervalued.
     
  8. MacNut macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #8
    It's only value is what a person is willing to pay. Right now Apple is the hot stock to own. Something else will come along and everyone will buy that. Currently Apple is a one trick pony with the iPhone. iPad sales are flat. People are waiting to hear what comes next.
     
  9. Khalanad75 macrumors 6502

    Khalanad75

    Joined:
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    land of confusion
    #9
    But that's the thing. They aren't just a one trick pony. Their profits in other areas are enough to make most other companies years, it's just iPhone profits are so large. But even taking away the iPhone profits, there is still a very large and profitable company there.
     
  10. T'hain Esh Kelch macrumors 601

    T'hain Esh Kelch

    Joined:
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    Location:
    Denmark
    #10
    This is AAPL, also known as "This stock defies logical sense".
     
  11. Scepticalscribe, Aug 6, 2015
    Last edited: Aug 7, 2015

    Scepticalscribe Contributor

    Scepticalscribe

    Joined:
    Jul 29, 2008
    Location:
    The Far Horizon
    #11
    No. What you have termed as Apple's 'weakness' is not necessarily a harbinger of 'things to come' for any company except Apple.

    This has little to do with world patterns and cycles of 'boom & bust' and a lot to do with the fact that Apple, like any company specialising in innovation, is no longer defining the what might be termed the desirable future of technology.

    For now, much like Nokia a mere 15 years ago, it still commands its own universe. Long term, without innovation, while the company will doubtless survive, (and survive quite well), I doubt that it will command the sector it has done so much to define for so long.

    Very good and thoughtful post, and one with which I agree.

    I don't doubt that they are a large and profitable company, and indeed, that they will remain one for quite some time.

    However, I don't see them remaining in the sort of technological and innovatory position where they defined what the market should aspire to and were the benchmark against which everyone other company in the field measured themselves. That is what has changed.
     

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