Apple shares open below $100 for first time since 2014

Posted:
in AAPL Investors
Wall Street's pessimistic view of the iPhone's future continues to drag Apple stock downward, as shares of the Cupertino company opened trading below $100 for the first time in more than a year on Thursday.




Premarket activity brought Apple to $98.72, a 1.97 percent drop from Wednesday's $100.70 closing price. The decline leveled off after trading began, with shares rising to $99.59 at press time.

Apple shares last opened under $100 in Oct. 2014, four months after the company's 7-for-1 split.

Investors remain concerned about the long-term growth potential for the iPhone. The megapopular handset -- and the iOS ecosystem surrounding it -- now account for the lion's share of Apple's revenue and profits, magnifying the effects of any potential slowdown.

Apple is expected to reveal strong holiday sales on its upcoming first-quarter earnings call, but many bears believe that could be the last gasp for growth. Some say that the upcoming March quarter could bring the iPhone's first ever year-over-year sales decline, though that remains a minority viewpoint.

In what may have been a move designed to soothe investors' worries, Apple earlier this week touted record-breaking sales numbers for the App Store. Consumers spent more than $1.1 billion on apps and in-app purchases in a two-week span covering Christmas and New Year's Day, including $144 million on Jan. 1 alone.
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Comments

  • Reply 1 of 65
    The stock traded at $92 a few months ago. Need to correct the title of the article.


  • Reply 3 of 65
    The stock traded at $92 a few months ago. Need to correct the title of the article.


    The title is not incorrect.  The stock did trade as low as $92 I believe for a few minutes one day a couple months ago, but it neither opened nor closed below $100 on that day. 
    edited January 2016 cornchipSolijonl
  • Reply 4 of 65
    SpamSandwichSpamSandwich Posts: 33,407member
    Actually, it's the crashing Chinese stock market (2 times this week so far) that is driving down AAPL now. The rumors about the supply chain noise didn't help earlier.
    Solimagman1979tallest skilpotatoleeksoup
  • Reply 5 of 65
    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
  • Reply 6 of 65
    adrayvenadrayven Posts: 460member
    Actually, it's the crashing Chinese stock market (2 times this week so far) that is driving down AAPL now. The rumors about the supply chain noise didn't help earlier.
    Exactly! Chinese market is impacting WS badly.. Everything I have has been down every day this week. It's not just APPL. It's obvious Wall Street is very nervous in all sectors right now because of China's multiple market crashes.
    edited January 2016 jbdragongatorguymagman1979
  • Reply 7 of 65
    SpamSandwichSpamSandwich Posts: 33,407member
    So, what's the word on Sog? I hear he committed seppuku.
    Solijackansimagman1979potatoleeksoupiqatedo
  • Reply 8 of 65
    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
    Its herd mentality. No point in speculating. We'll know when Apple reports in a few weeks. But your comment about iPhone 7 just shows how pathetic this is. We've heard next to nothing about iPhone 7, certainly not anything that would point to it being some major change from the 6. So what exactly would the resurgence in the stock be for? If we're to believe these rumors and Apple is cutting orders for the 6S why should we believe people are going to rush out and buy the 7 or that we won't be talking about the same damn thing a year from now with analysts predicting 7 cuts but telling everyone things will get better with the 8.
    edited January 2016 palomine
  • Reply 9 of 65
    adrayven said:
    Actually, it's the crashing Chinese stock market (2 times this week so far) that is driving down AAPL now. The rumors about the supply chain noise didn't help earlier.
    Exactly! Chinese market is impacting WS badly.. Everything I have has been down every day this week. It's not just APPL. It's obvious Wall Street is very nervous in all sectors right now because of China's multiple market crashes.
    Not really. Apple dropped from $134 to $105 prior to this weeks China crash. That's a decline of 22%.
    Now look at Facebook, Netflix, Google, and Microsoft before this week. They were all at or near all time highs after posting amazing 2015 returns. Apple stock is just very weak right now. I expect it to go down to $80 in a few months.
    edited January 2016 benjamin frost
  • Reply 10 of 65
    SpamSandwichSpamSandwich Posts: 33,407member
    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
    Its herd mentality. No point in speculating. We'll know when Apple reports in a few weeks. But your comment about iPhone 7 just shows how pathetic this is. We've heard next to nothing about iPhone 7, certainly not anything that would point to it being some major change from the 6. So what exactly would the resurgence in the stock be for? If we're to believe these rumors and Apple is cutting orders for the 6S why should we believe people are going to rush out and buy the 7 or that we won't be talking about the same damn thing a year from now with analysts predicting 7 cuts but telling everyone things will get better with the 8.
    IMO, this is yet another period to consider adding to one's portfolio. Just placed a limit buy order. I'm assuming a bit more of a fall.
  • Reply 11 of 65
    williamhwilliamh Posts: 810member
    So, what's the word on Sog? I hear he committed seppuku.
    i checked comments fully expecting that character to rant about Tim Cook. Here's to you, Sog:  Cook has to go because all he is doing is successfully leading the most profitable company in the world and not stroking Wall Street like he should.

    I don't like to see the share price go down, but these things happen.  Apple can't account for external factors like China, etc.  The price will catch up to the fundamentals. No big deal. I'm glad Cook focuses on things that are within his control and contribute to the long term success of the company.  Screw you Sog.
    SpamSandwich
  • Reply 12 of 65

    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
    Its herd mentality. No point in speculating. We'll know when Apple reports in a few weeks. But your comment about iPhone 7 just shows how pathetic this is. We've heard next to nothing about iPhone 7, certainly not anything that would point to it being some major change from the 6. So what exactly would the resurgence in the stock be for? If we're to believe these rumors and Apple is cutting orders for the 6S why should we believe people are going to rush out and buy the 7 or that we won't be talking about the same damn thing a year from now with analysts predicting 7 cuts but telling everyone things will get better with the 8.
    Apple always gets a nice bump up when they change the shell of the phone. iPhone4, 5, and 6 all had nice unit growth.  The S-models have been hit and miss. 4s was huge, 5s barely had growth, and the 6s will probably have a slight decline. That means even if only iPhone6 users upgrade to the 7 we will see a YoY unit growth over the 6s. But of course there will be switchers from Android and some 5/4 series holdouts who skipped the 6. So I expect a nice 8-10% unit growth for the iPhone7. That should should help the stock reach about $125. In the 7s shows growth then we see $140 in a couple of years.

    With that in mind I'd wait for $80 share price. If taxes isn't a factor I'd even sell shares now at close to $100 and wait for that $80 price in the Spring. Then you can easily get a 50% return by mid 2017.


    benjamin frost
  • Reply 13 of 65
    jfc1138jfc1138 Posts: 3,090member
    Frankly this is likely better in the medium term than overly insane expectations that can't be met. Look at the summer beat. Yoy was tremendous, despite the everlasting "last gasp", yet the expectations pullout of analysts orifices was higher: so the stck got hammered. 
    edited January 2016
  • Reply 14 of 65
    The Chinese economy is in trouble and weighing heavily on the market coupled with the first Fed rate hike in years. 

    The entire market is a bear market.  At this point, it doesn't really matter what is going on internally at Apple, the market is going to react negatively regardless. 

    Samsung's warnings show even greater weakness in the Android market. And China's weakness means that Huawei and Xiaomi are in trouble also. 

    Apple is still in the best position and it will become evident going forward. 
    palominemagman1979tallest skil
  • Reply 15 of 65
    MacProMacPro Posts: 19,429member
    So, what's the word on Sog? I hear he committed seppuku.
    That or his loan shark turned up ;)
    SpamSandwichmagman1979
  • Reply 16 of 65
    Its herd mentality. No point in speculating. We'll know when Apple reports in a few weeks. But your comment about iPhone 7 just shows how pathetic this is. We've heard next to nothing about iPhone 7, certainly not anything that would point to it being some major change from the 6. So what exactly would the resurgence in the stock be for? If we're to believe these rumors and Apple is cutting orders for the 6S why should we believe people are going to rush out and buy the 7 or that we won't be talking about the same damn thing a year from now with analysts predicting 7 cuts but telling everyone things will get better with the 8.
    IMO, this is yet another period to consider adding to one's portfolio. Just placed a limit buy order. I'm assuming a bit more of a fall.
    At what price?

    I fully expect to see this at $80 this Spring/Summer when Apple reports iPhone unit declines for the first time ever. I'd wait for that level.
    jackansibenjamin frost
  • Reply 17 of 65
    MacProMacPro Posts: 19,429member

    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
    Well you are certainly entitled to your opinion and idiom.  I prefer to think the analysts cry wolf too often to manipulate AAPL, however that and the Yuan issues are creating a perfect storm for AAPL so it may well be an excellent buying opportunity.  BTW, The cost of Apple's production just went down significantly, I don't see that factored in anywhere.
  • Reply 18 of 65
    sflagelsflagel Posts: 627member
    Apple shares are dropping because of China: the Chinese stock market is down and the stocjk price is pricing in future saturation of the Chinese stock market. What are the regional sales numbers like, isn't most of the growth coming from extending the global footprint, rather than from established markets? If that is the case, then it is easy to model saturation across the world, plus a lower refresh rate (more akin to the iPad refresh rate).

    Plus, flat-rate services such as Netflix, DropBox, Apple Music, Spotify, etc make switching easier and cost-less.

    This all results in a re-statement of the Apple share price to  sustainable levels.

    The firm needs to sell ever more products every year, and they will only be able to do that if they actually sell NEW products every year.
  • Reply 19 of 65
    SoliSoli Posts: 10,032member
    This is awesome! What a great buying opportunity.
    SpamSandwichmuppetrymagman1979
  • Reply 20 of 65
    satchmosatchmo Posts: 2,699member
    I don't think so. There is just way too much smoke not to have a fire at this point. The March quarter will show an iPhone unit decline. But I would not panic. This is what I see the next few months: stock could go as low as $80 by Spring because of decline of iPhone units in March. But I see the stock resurging on news of the iPhone7 release and big gains in AppleWatch2 units. I expect to close the year at about $125. 
    Its herd mentality. No point in speculating. We'll know when Apple reports in a few weeks. But your comment about iPhone 7 just shows how pathetic this is. We've heard next to nothing about iPhone 7, certainly not anything that would point to it being some major change from the 6. So what exactly would the resurgence in the stock be for? If we're to believe these rumors and Apple is cutting orders for the 6S why should we believe people are going to rush out and buy the 7 or that we won't be talking about the same damn thing a year from now with analysts predicting 7 cuts but telling everyone things will get better with the 8.
    I don't think a new iPhone 7 will make a lick of difference. I believe there's a fundamental sea change in the smart phone market. The days of premium $700 phones are numbered and not a 'smart' buy. People are happy to get by with decent $300 phones that do 90% of what an iPhone does. Only your hard core Apple enthusiast will ooh and ahh and make the latest design, a must have upgrade.

    The sky is not falling, but when the iPhone makes up 70% of Apple's revenues, you have to wonder how hard and fast Apple stock can crash.
    jackansibenjamin frost
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