Apple stock falls below 200-day moving average, drags down Dow Jones Industrial Average

Posted:
in AAPL Investors edited August 2015
Since it was added to the Dow Jones Industrial Average in March, Apple has been a weight on the index, accounting for 14 percent of its losses in the last four and a half months.




After sliding even further on Monday, Apple fell below its 200-day moving average for the first time since September of 2013. Shares of the company have struggled in particular since it announced a record breaking June quarter that still fell short of Wall Street's lofty expectations.

Apple replaced AT&T on the Dow Jones Industrial Average when trading began on March 19, and Bloomberg on Tuesday calculated how things would be different if AT&T had stayed on the Dow in that time. While Apple's losses have lowered the dow by 67 points, AT&T during the same time period has gained 7.7 percent.

In addition to selling fewer iPhones than expected in its June quarter, Apple also faces scrutiny over its anticipated forthcoming "iPhone 6s" series. Some investors are concerned that an "S" upgrade may not result in the type of massive year over year growth Apple's iPhone 6 series has seen.

Market watchers have also speculated that concern over the Chinese market has weighed on shares of AAPL in recent weeks. Monday's losses were accompanied by a new study from Canalys that claimed Apple's iPhone had dipped to third place in the Chinese smartphone market.


The New York Stock Exchange, credit Carlos Delgado via Wikipedia.


Combined with the Shanghai Index losing more than a quarter of its value in recent weeks, investors may be worried that Chinese consumers' desire for the iPhone could wane.

Apple, however, remains bullish, not only for future iPhone growth, but also for its near future in China.

Apple Chief Executive Tim Cook noted during his company's last quarterly earnings report that just 27 percent of the iPhone installed base has upgraded to the latest generation iPhone 6 series.

"We view that as a very bullish sign on the future, and there's a lot of headroom left for upgraders," Cook said, not so subtly suggesting that the anticipated "iPhone 6s" series has plenty of growth opportunities.

As for China, Cook said that volatility in the country's equity markets does not concern him. He noted that stock market participation amongst Chinese citizens is very small, and that Apple still saw 90 percent growth in the country last quarter.

"I think we would be foolish to change our plans," he said. "I think China is a fantastic geography with an incredible, unprecedented level of opportunity there. And we're going to be there."
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Comments

  • Reply 1 of 88
    chadmaticchadmatic Posts: 285member
    Ah yes, welcome to the greatest game of manipulation.
  • Reply 2 of 88
    A city of London trader got 14 years in jail yesterday as a result of 'manipulating' the LIBOR rate... and more court cases are to follow. Beats me how Wall Street traders and 'analysts' get away scot-free with doing something similar, year after year, to line their own pockets.
  • Reply 3 of 88
    robmrobm Posts: 1,068member
    I saw that Bloomberg article yesterday - man, they are really a mouthpiece for spreading the BS thick n quick.

    They take anything, any fact and spin it to wherever they want knowing that Reuters et al will pick it up. The dailies will pick it up - and all of a sudden, "Hey, it's a fact!"
    Disgusting behaviour - but they've been doing it forever ... :no:

    I see APPL went up a little today - I guess the glee club on Wall St have decided to ride the stock up now. /cynical
  • Reply 4 of 88

    As much as I love jumping on "analysts" who attempt short-term manipulations of Apple stock, I must say that the efficient market theory would apply pretty well here.  If there are a bunch of manipulators driving the stock price down, then that means there are more sellers than buyers at the higher price.  If the price is driven down, then prudent investors will start buying at lower prices to get more of the stock in a company with great fundamentals, but with jerk analysts driving down the price.  So prudent investors would jump in basically to get larger and larger ownership percentages in a great company with an artificially low price.  This is what Apple itself is likely doing, as well as Icahn.  Eventually, the charlatans will be hoisted by their own petard because ownership will be concentrated in fewer hands, thus there will be less ability to manipulate the stock price.  This is a game that takes years to play out, but it seems to be the game that Icahn and Apple (to name a few) are, long-term, winning.

  • Reply 5 of 88
    lkrupplkrupp Posts: 6,684member

    The FUD is strong in this article my young Padawan. 

  • Reply 6 of 88
    It is utterly pointless to be railing against the market. It is what it is.

    All Apple can really do in a financial sense is to use this as an opportunity to buy back more of its shares. However, it may start to bump up against prudential levels of domestic cash available to do that, given current debt levels. At some point, the company may have to start to dip into its foreign cash pile. Let's hope there's a repatriation deal soon.
  • Reply 7 of 88
    When did appleinsider.com turn into applefearmongering.com ?

    There is so much misleading and out of context info up there it's amazing.
  • Reply 8 of 88
    badmonkbadmonk Posts: 754member
    Yes Apple's reward for EPS (up 45% no less), great profit margins, revenue increase in the face of currency headwinds. All the factors pulling it downward are speculation unmoored in fact.

    Hopefully, Tim and company are buying ip shares like mad.

    Meanwhile all other tech companies gain price in the absence of cohesive business plans.

    I bought more shares yesterday. I am hunkering down for the long haul.
  • Reply 9 of 88
    totaltotal Posts: 83member
    currently at $116 with PE 13.3 that is like AAPL should end soon, for example Microsoft has PE 32, on the other hand IBM just 10.5

    If AAPL will come close to $100 i will consider investing again, because it will be good opportunity.
  • Reply 10 of 88
    linkmanlinkman Posts: 881member
    Quote:

    Originally Posted by BadMonk View Post



    I bought more shares yesterday. I am hunkering down for the long haul.

    Smart move. It is probably at the bottom or very close to it. 

  • Reply 11 of 88
    jasenj1jasenj1 Posts: 910member

    Meanwhile Amazon continues to lose money and their stock price took a big jump after their latest earnings report.

     

    Accept that the market is irrational and manipulated. Play the game and take what crumbs you can from the manipulation by the big dogs. I see this as a buying opportunity.

     

    - Jasen.

  • Reply 12 of 88
    jungmarkjungmark Posts: 6,644member
    Apple didn't sell fewer iPhones than expected. It sold what Apple predicted it would sell. Analysts failed in their uneducated guesswork.
  • Reply 13 of 88
    rogifanrogifan Posts: 10,669member

    Wall Street is clearly in a panic over Apple now. It seems like they go through these cycles where they get really bearish on the company and the stock sells off.

  • Reply 14 of 88
    robin huberrobin huber Posts: 3,234member
    As someone else on this forum reminded me a while back, look at the last one or two years of AAPL. Yes, it gets manipulated in the short term, but long term it just keeps slowly and constantly going up. Just what we long term investors want. Just slow and steady growth, no manic highs and lows.
  • Reply 15 of 88
    SpamSandwichSpamSandwich Posts: 30,692member
    It is utterly pointless to be railing against the market. It is what it is.

    All Apple can really do in a financial sense is to use this as an opportunity to buy back more of its shares. However, it may start to bump up against prudential levels of domestic cash available to do that, given current debt levels. At some point, the company may have to start to dip into its foreign cash pile. Let's hope there's a repatriation deal soon.

    They wouldn't "dip into" any of their foreign cash, they'd just sell more bonds or borrow at today's ridiculously low rates.
  • Reply 16 of 88
    rogifanrogifan Posts: 10,669member
    Quote:

    Originally Posted by sog35 View Post

     

    I think its time for Apple to seriously consider going private.

     

    The buyback is become a waste of money IMO.  Even with total domination of their sector (92% profits) and ridiculous EPS growth (45%+) Wall Street continues to punish long-term shareholders.

     

    If I was Apple I would float out a rumor that Apple is thinking of going private.

     

    I would convert my common shares to private common shares in a heart beat.

     

    There must be a way for Apple to go private and get out of this toxic atmosphere.


     

    Apple's market cap is over $650B. How the hell do they go private?

  • Reply 17 of 88
    Quote:
    Originally Posted by sog35 View Post

    I think its time for Apple to seriously consider going private.

     

    The buyback is become a waste of money IMO.  Even with total domination of their sector (92% profits) and ridiculous EPS growth (45%+) Wall Street continues to punish long-term shareholders.

     

    If I was Apple I would float out a rumor that Apple is thinking of going private.

     

    I would convert my common shares to private common shares in a heart beat.

     

    There must be a way for Apple to go private and get out of this toxic atmosphere.

     

    They can in no way, shape or form go private. They're a $700B+ company, and simply cannot afford it. It's not like they can just flip a switch and hop off the market. They should absolutely use this opportunity to buy back shares, however. It's absurd that the stock has gone down so much after such a great quarter. It's a good use of cash, and will save them lots of money in the long run.

    On an unrelated side note, I really wish there was a cost-effective way for Apple to repatriate some cash. The fact that $160B+ (I forget the exact #) of their cash is held overseas is nuts.
  • Reply 17 of 88
    SpamSandwichSpamSandwich Posts: 30,692member
    sog35 wrote: »
    Its total manipulation.

    The initial iPhone unit sales by analysts back in April for the June Quarter was 45-46 million iPhones.

    But through June and July they kept raising their estimates for no reason at all to 49-50 million iPhones.

    Why did they raise their estimates?  SO APPLE WOULD MISS.  PERIOD.



    I'm really getting sick of this shit.  I haven't sold a single Apple share but I want this company to go private.

    Hey, it's going to be rough, don't kid yourself. But your one year of self-imposed ban from here will be over before you know it.
  • Reply 19 of 88
    isteelersisteelers Posts: 738member
    badmonk wrote: »
    Yes Apple's reward for EPS (up 45% no less), great profit margins, revenue increase in the face of currency headwinds. All the factors pulling it downward are speculation unmoored in fact.

    Hopefully, Tim and company are buying ip shares like mad.

    Meanwhile all other tech companies gain price in the absence of cohesive business plans.

    I bought more shares yesterday. I am hunkering down for the long haul.

    Agreed. Great time to buy shares before the new iPhones come out, for both individuals and Apple itself.
  • Reply 20 of 88
    SpamSandwichSpamSandwich Posts: 30,692member
    sog35 wrote: »
    IMO this drop is worse then the drop we saw in 2012/2013.

    That drop actually had some merit.  Apple's profits growth was actually flat in 2012 holiday quarter and negative in the next two quarters.  There was a real threat that Apple would continue to lose profitabity.  Also Samsung was grabbing huge share in the high end market and was reporting massive profits in their mobile division.  

    The drop the last 2 weeks has been total and utter bullshit.  Samsung is getting killed off.  Apple is totally dominating the high end and Apple's profits are exploding upwards.  

    What are you talking about? AAPL is at a 6-month low.
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