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Apple Stock Crashes to 6 Month Low: Analysts warning

Sites include . Published on November 16th, 2012. Written by SiteTrail.

If someone had uttered two months ago that Apple’s stock would be performing badly in the month of November, they’d probably hear the cry: “rubbish!” But back then it would have been unlikely that someone would have suggested that, after all, the company which had seemingly weathered the passing of its talisman, Steve Jobs was setting record after record. Apple’s allure and its dominance seemed almost god-like—an unstoppable force of tech. But that’s the myth and the sharp and punishing reality of tech stocks and businesses in general is starting to bite.

Apple’s stock has just hit a 6-month low and fears are that it may not have bottomed out yet. Although the price is still up from a year ago, much of the 74% gains made in the last few months have been wiped out.

So what’s causing the nose dive?

Analyst are divided as to what may be causing the decline but one expert over at CNBC believes that much of the shares being dumped presently are held by large mutual funds and these constitute a large ownership block of Apple stock. In the last few weeks these institutional investors have been selling off their shares to capitalize on Apple’s meteoric growth in the last few months.

Others believe Apple share price grew too much for its own good; they cite the fact that continued growth relies on a steady stream of ‘new’ investors and the surging price of Apple’s stock has largely shut out these would-be buyers. But could there be more to what meets the eye?

A series of unfortunate missteps

If you were to take an historical look at Apple’s share price over say the last 4 years, you’ll see that it has remained steady for all that period. The stock has undergone some changes, but overall Apple’s standing among investors remains solid. But outside of those historical numbers, one has to look at the fundamental changes that have taken place inside the company. The most notable of course is the passing of Steve Jobs; this had a galvanizing effect on Apple’s fan base and in the first few months things looked pretty OK.

In the last few months things have not being so ‘settled,’ not least because several products have been released since Jobs passed away. The iPhone 5, iPad 3 and iPad mini have all come to market under Tim Cook and it would be hard to overlook the troubles that have accompanies these releases. Some believe now that these mistakes are now starting to damage the company’s image.

Despite what seems to be a changing tide however, many analysts are bullish on Apple’s stock. The fact is no other company has the sort of market appeal and savvy that Apple has going for it and any investor who stops believing that will certainly miss out on an opportunity to keep owning stock in the best performing company of the last 10 years.

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