Second Investor Dumps Shares as Apple Stock Drops to Near Two-Year Low

[Andres Cantu]

2016: the year of incremental product updates.

No surprise why Apple has lost a quarter of a trillion dollars in market cap since one year ago.

 

[gijoeinla]

Good. Let the hysteria take its toll on the stock price. Only means getting some Apple stock will be more profitable when it turns out the iPhone is actually doing fine.

Exactly. I'm a stockholder and I'm actually thrilled that these a'hole speculators and manipulator are FINALLY getting out-of-this-stock...

Anyone with a brain knew it was NEVER good for Apple that that SCUMBAG Carl Ichan got into the stock to begin with.

The shedding and lowering of expectations absolutely ensures a return to GROWTH.

As painful as it is -- this needed to happen.

 

[mango316]

Personally I would just sell July 16 $100 call strike and July 16 $85 put strike as AAPL most likely to be stuck in a range until next ER.

 

[dannyyankou]

I still don't understand how Tim Cook can decide to fit 5400 rpm physically spinning hard drives in $1000+ computers, and then turn around and say "We at Apple are committed to making THE BEST computers that we physically can"

I just looked into this and I had no idea they shipped an iMac with a 5400 RPM HDD. My MacBook from 2012 had one but it got so slow I replaced it with a SSD. It's now blazing fast.

I also upgraded the RAM. One of the benefits of everything not being soldered inside.

 

[shimy1984]

It seems to me the fix for Apple as a whole is to kill most of their product lines and get back to basics.

They have too many products in each category which confuses their own market. They're stretching themselves too thin. When they can't completely focus on a few truly great products, you just get a bunch of subpar ones with glitchy as hell OSs.

This coming from a guy that is a definite Apple fanboy.

 

[now i see it]

Pretty amusing. It's guys like these that cause the stocks to drop. They're all in it for the quick buck. They aren't investing in the company, just trying to flip a stock.

No company can continue forever on the trajectory the iPhone has had the last several years. It's impossible.

 

[iBug2]

2016: the year of incremental product updates.

No surprise why Apple has lost a quarter of a trillion dollars in market cap since one year ago.

It's not Apple who lost that money though, it's the investors. Apple has gained 50 billion dollars compared to one year ago.

 

[Chupa Chupa]

He could have solved it by incorporating and not being involved in the business guarantees. He was not that smart.

No. That was back in 1976 well before S Corps existed. Partnerships were the standard legal structure small startups used back then as C corps were/are expensive to establish and cumbersome to maintain, and not tax efficient.

Also even if they had set up an S corp no bank or business is going to loan $ or ship parts, respectively to a company with no real assets. They will require a personal guarantee with joint and several liability, so Wayne still wouldn't have escaped liability at that point. He didn't know that months later Apple would find "angel investors," and he didn't want to risk what he had. Being prudent about one's assets is being smart.
[doublepost=1463241727][/doublepost]

Pretty amusing. It's guys like these that cause the stocks to drop. They're all in it for the quick buck. They aren't investing in the company, just trying to flip a stock.

Huh? No. Investors get out when they don't think the investment is going to make them a decent return. Also technically, flipping a stock; i.e., short term trade, is when one holds a stock for less than one year. Appaloosa has held its core Apple position for years, buying and selling addition shares along the way.

But flipping a stock the size of Apple happens every day --- do you even notice the trading volume of Apple? Millions of shares change hands daily. Apple is not a small cap. When big traders dump there shares it doesn't have nearly the downward effect on the company as, say, actual bad earnings or vague product pipeline.

 

[happyprozak]

Isn't the stock market all based on future performance? Meaning investors aren't as concerned about today's performance as they are about future performance?

Apple has been growing consistently for a long time now and I imagine that the price of Apple stock was based on Apple continuing their growth. Apple will now shrink for the first time so investor sentiment is reflecting that.

Look at Amazon stock, it's highly overvalued at its current price and it has been for a very long time. But Amazon is seen as having tons of potential and it's stock price reflects that. I think they barely started turning a profit a year or two ago.

 

[pat500000]

"Don't worry guys...we'll buy back those stocks...nothing to it." -Tim Cook.

 

[Zirel]

PC prices are dropping, yet newer Apple laptops are all over $1K. I think that with decent Windows 10 laptops at sub $499 levels

PC prices are dropping... for what PC's?

Crap that nobody wants?

There are no "decent" Windows 10 or whatever laptops at sub $499 levels.

for many folks it's getting more difficult to justify spending over $1K on your kid's 1st laptop

Yes, and why spend $499, when you can get an Android tablet for 10X less and even below?

One reason Apple is popular with college students is that they had hands-on experience with Macs in Middle and High School...

Or because they have more to do with their computer than browse youtube and play games, and portability, reliability, usability and battery life are very important?

The old Whitebook was everywhere, every kid wanted one.

And the new MacBook is even more popular. Way more!

 

[Dr.Chroma]

You know..I bet Tim Cook probably shrugged his shoulders and said "Oh Well" when he heard about his second investor dumping shares. I would like to think he is thinking "My priority is to focus on innovation and Customer satisfaction, not worry about what these investors do with their shares, that's there business."

 

[machtv]

The only thing I hope for, is that Apple focuses on its business and innovation and less about its stock price, or who buys it. If you start worrying about the price of the stock, you take your eyes off of what got you there in the first place.

i think they took there eyes off of what got them there years ago. and not because they are watching there stock prices. i think it has to do with stevie taking the big old dirt nap in the sky.

 

[Black Magic]

I find investing fascinating..... What I find even more fascinating is how much panic you can create so easily that causes people to start dumping shares. I am not an economist or mathematician but up and downs are completely inevitable. You an't sustain significant growth indefinitely. Since most of apple's revenue comes from the iPhone it had to happen sooner or later because there are only so many people with smart phones and let's be honest, the update from year to year is so insignificant that it just doest warrant you to get out and grab a new one. Except of course for the enthusiasts.... I'm actually hoping it will slip more so I can buy more of it because it will be back. Every few years there is a significant breakthrough in technology that pushes it back up.

It's gambling basically and the powers that be can manipulate the market in various ways. While folks are dumping, it maybe a good time to buy. Buy low, sell high.

 

[Belgique]

Hedge fund billionaire David Tepper has sold his entire stake in Apple, according to a filing with the Securities and Exchange Commission (via Business Insider UK).

Tepper's 1.26 million shares in the company were last valued at around $133 million, according to data from Bloomberg. The massive sale of Apple shares is the second reported in as many months, after billionaire Carl Icahn dumped his stake in the company earlier this year based on worries over China's attitude towards the tech giant.

Since August 2015, 146 of the 833 hedge funds tracked by Goldman Sachs had Apple as one of their largest positions, earning it the number two spot on Goldman's list of stocks "most loved" by hedge funds.

But Apple shares have been on the decline since last month's earnings call, where the company announced its first ever drop in iPhone sales and its first year-over-year revenue drop in 13 years.

Two days ago, shares of Apple fell below $90 for the first time in nearly two years amid investors' concerns over slumping sales. Apple's stock price fell 3.3% to $89.47 during Thursday afternoon trading, leaving its market valuation at $494 billion. At the same time, Google's parent company Alphabet briefly overtook Apple as the world's most valuable company, hitting a market cap of $498 billion.

Article Link: Second Investor Dumps Shares as Apple Stock Drops to Near Two-Year Low

 

[tennisproha]

These guys made out like bandits. Way to bite the hand that feeds you.

 

[Mums]

I call shenanigans - check out this article http://etfdailynews.com/2016/05/13/...lling-this-central-bank-was-furiously-buying/

How much you wanna bet they're going to make Apple stock disappear into untraceable Swiss money holes to keep the world's economy afloat until they pull the plug on us all like they're doing to Venezuela right now? You say I'm paranoid? You say I'm a conspiracy theorist? You say I wear a tin foil hat?

I've known all along they were bloating Apple as the lynchpin to crash the world economy to usher in globalism. Tim Cook is a stooge to the Cabal.

 

[Chupa Chupa]

These guys made out like bandits. Way to bite the hand that feeds you.

Made out like bandits? Who did they steal from? Hand that feeds [them]? Investors risk THEIR capital in the belief their will be a return on that capital. They are helpless people or wards of the state taking whatever assistance they can to get to survive and then betray their benefactor. Apple did not make them and they want to make sure it won't break them. Not sure what is so evil about that.

Apple isn't hurt financially by the selling except to the extent its a vote of no confidence in Apple's short to mid-term outlook. There will be employees that might get pinched if there options expire at current or lower prices but that is the risk they took accepting them in lieu of cash at the outset. But their bet was on TC and co. That is the group that let them down, if any. The ones that don't really get hurt are the upper level execs like TC who can muck up a company, lose faith with investors and customers, even get s-canned because of it, but still come out with a golden parachute, financially better than 99.9999% of all working human's on earth, many of which have accomplished great things for humanity, not just "special" gold watch bands and iPhone battery cases with humps.
[doublepost=1463246910][/doublepost]

I call shenanigans - check out this article http://etfdailynews.com/2016/05/13/...lling-this-central-bank-was-furiously-buying/

How much you wanna bet they're going to make Apple stock disappear into untraceable Swiss money holes to keep the world's economy afloat until they pull the plug on us all like they're doing to Venezuela right now? You say I'm paranoid? You say I'm a conspiracy theorist? You say I wear a tin foil hat?

I've known all along they were bloating Apple as the lynchpin to crash the world economy to usher in globalism. Tim Cook is a stooge to the Cabal.

Haven't you heard. Panama is the new Switzerland.

 

[EiriasEmrys]

Absolutely. The Mac is garbage right now. I lose the OS's design and all that, but their hardware... it's just so slow. iPad's are catching up to it, and you can now buy computers in the $600 range that are faster than Mac Pros. Not cool. Not cool at all.

The 5400 RPM harddrive is also a great example. I dunno what the **** went through the minds of the people who put that in.

As a member of the small community that creates PCs that can run Mac OS, I must respectfully disagree with the $600 range mythical computer that are faster than Mac Pros. The hardware to get you "close" to that performance on Windows or Mac is a min 1500-1800, depending on hardware choices. If you only look at Single Core performance, you might find a pre-built machine capable of beating a MacPro in single-performance tasks, but its like bringing a water pistol to a super-soaker fight. And that has ALWAYS been the case with multi-core XEON systems, single-core performance is going to be better on top consumer hardware vs server chips.

Stop spreading myths. Or show me a $600 computer with dual gpus, Xeon server class processor, ECC memory, and PCI SSD standard. Oh, and 6 ports of thunderbolt. Then you can say it beats a mac pro. I don't have a lot of love for the current mac pro, but i do take issue with people constantly comparing consumer tech to enterprise tech and blaming the Apple premium for most of the cost difference. Take a look at HP's enterprise xeon workstations, and you are going to see quite similar price points, infact, the entry level Mac Pro is more bang for your buck than the HP at the same ~3k price point.

 

[raybo]

It's clear that to get marketshare Apple should make the base Macbook $299 and release the iPhone 7 with 32GB of storage for $199 and BOGO. Clearly the Android OEM's who are swimming in profits and success have shown that giving away products is the best way to go.

On a serious note to this topic and the 'doom' in most of the comments. The reality is that Apple is fine. Mainly because the competition is so inept and terrible. They have tons of leeway to "not innovate", whatever that's supposed to mean because Microsoft, Google, and Android companies are disorganized and sloppy in their product offerings. Apple has such a massive lead on them in terms of overall product usability and profit margin that it's ridiculous. Last time I checked the iPhone is still the iconic smartphone of the day and generates almost all of the profit in the industry. Same with the Mac when it comes to computers.

Apple isn't doomed, but their market share of laptops has dropped considerably. I think this is due to the success of the very stable Windows 10 and $499 laptops. Apple just needs to offer laptops starting at $899 in order to get new customers to choose Apple as their 1st computer. It's getting harder to justify the $1200+ prices of Apple's lower-end laptops. Those who choose the Retina MacBook also have to purchase expensive adapters to deal with the single USB connector. No SD input?

 

[Mums]

Made out like bandits? Who did they steal from? Hand that feeds [them]? Investors risk THEIR capital in the belief their will be a return on that capital. They are helpless people or wards of the state taking whatever assistance they can to get to survive and then betray their benefactor. Apple did not make them and they want to make sure it won't break them. Not sure what is so evil about that.

Apple isn't hurt financially by the selling except to the extent its a vote of no confidence in Apple's short to mid-term outlook. There will be employees that might get pinched if there options expire at current or lower prices but that is the risk they took accepting them in lieu of cash at the outset. But their bet was on TC and co. That is the group that let them down, if any. The ones that don't really get hurt are the upper level execs like TC who can muck up a company, lose faith with investors and customers, even get s-canned because of it, but still come out with a golden parachute, financially better than 99.9999% of all working human's on earth, many of which have accomplished great things for humanity, not just "special" gold watch bands and iPhone battery cases with humps.
[doublepost=1463246910][/doublepost]

Haven't you heard. Panama is the new Switzerland.

It'll disappear down some hole or other..

 

[Fishticks]

IPhone 7 will be a failure (selling less than previous model), and everybody knows it.
Market is anticipating AAPL drop and will just amplify it. Maybe minus 20%...

 

[B.K.]

Scott Forstall

I wonder if he would be interested in returning if TC gets the axe.

 

[robjulo]

Lol at all of the "it's everyone's fault but Apple's" posts.

 

[B.K.]

Customers will continue to align with Apple only if they design the best products and services in every aspect, price them fairly, going for increasing install base.

None of those things are happening now, hence customers are no longer aligning. One could argue they are doing the exact opposite.