Apple loses $34.9 billion in market cap
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Apple loses $34.9 billion in market cap
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Re: Apple loses $34.9 billion in market cap
#2This is an interesting headline given the main argument of the article.
Re: Apple loses $34.9 billion in market cap
#3Were there any rumors/news/anything today that triggered the movement? AAPL is behaving more like a penny stock than the $500-billion behemoth it is.
It's also interesting to see how its P/E is lower than Microsoft's now. Given the generally lukewarm reception towards Windows 8 / Surface, you'd think more investors would be fleeing from MSFT. I sold my MSFT shares and went short last month after buying (and returning) the Surface RT.
Re: Apple loses $34.9 billion in market cap
#4[deleted]
Re: Apple loses $34.9 billion in market cap
#5Were there any rumors/news/anything today that triggered the movement? AAPL is behaving more like a penny stock than the $500-billion behemoth it is. It's also interesting to see how its P/E is lower than Microsoft's now. Given the generally lukewarm reception towards Windows 8 / Surface, you'd think more investors would be fleeing from MSFT. I sold my MSFT shares and went short last month after buying (and returning…
This article lists some causes, but take it with a grain of salt.
http://www.bloomberg.com/news/2012-12-05/apple-declines-as-n...
Re: Apple loses $34.9 billion in market cap
#6This would never have happened if Steve Jobs was alive.
Re: Apple loses $34.9 billion in market cap
#7This renewed focus on market capitalization (and "valuation") has gotten a bit absurd. Market capitalization is an _approximate_ measure of _implied_ whole-company value. Approximate because we don't really know the number of shares outstanding, and whether you should use shares outstanding or fully-diluted equity, or heck, fully-diluted equity net of cash, depends on the application. It's also approximate because the share price only reflects the last trade or the inside quote. But that is only the price that _somebody_ (the most aggressive buyer or seller) was willing to pay/accept; if you wanted to buy or sell lots of shares (e.g. a whole company) obviously you wouldn't get the inside quote for all of it.
Most fundamentally, from a corporate perspective it's not like the company "loses" anything on its balance sheet when its shares change hands at a particular price. The share price does affect the company's cost of capital, but not so simply and not directly. Apple in particular is not going to need cash any time soon.
The more relevant measures of corporate health are the traditional revenue, net income, free cash flow, etc. It's true we don't get updates to those quantities every microsecond but they are still more important.
To the extent a 6% drop might reflect somebody somewhere with groundbreaking secret information that casts Apple's future income in doubt who has decided to place a big bet, yeah, it's possible, but it's too soon to tell and we don't really know what it means. (As Steve Jobs said, "Stocks go up and down.")
Re: Apple loses $34.9 billion in market cap
#8Investors are selling Apple stock in anticipation of changes in U.S. capital gains and other taxes.
Pretty much everyone who made it to the $700 valuation did so on an early, lucrative buy. It's all taxes.
Re: Apple loses $34.9 billion in market cap
#9Were there any rumors/news/anything today that triggered the movement? AAPL is behaving more like a penny stock than the $500-billion behemoth it is. It's also interesting to see how its P/E is lower than Microsoft's now. Given the generally lukewarm reception towards Windows 8 / Surface, you'd think more investors would be fleeing from MSFT. I sold my MSFT shares and went short last month after buying (and returning…
>"Were there any rumors/news/anything today that triggered the movement?"
There was an obscure clearing house that upped its margin requirement for APPL holdings that made the news this afternoon. Now why that triggered a sell off, I couldn't tell you. I'm no Apple bull, but this was sort of odd. Can't really trust anything happening in the markets the past few months.
Re: Apple loses $34.9 billion in market cap
#10Apple's share price has not had any correlation to its fundamentals for the last few years. If you were to compare its P/E ratio to that of other tech companies out there (Amazon's is 3628) it would technically be undervalued even at its current price.
That said, most of the volatility comes from all the prop trading firms trying to turn a profit. AAPL is considered a bullish stock amongst fund managers and is often used to hedge against other riskier positions in the market. Often times big dips in Apples stock can be attributed to profit taking (especially around this time as we finish up for the year and get nearer to the end of an American financial quarter – gotta look good on the books to the get Christmas bonus) and margin calls on bad trading days. You’ll notice a dip in the afternoon of any bad trading day as prop firms start getting margin calls on their failing positions and have to sell to cover their losses.