What the HELL happened to AAPL stock?

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lucaluca
Posted:
in General Discussion edited January 2014
I was just online and I was looking at a 5 year graph of AAPL stock... it rose steadily from mid '99 to mid '01... and then it tanked! From the 50-70 range all the way down into the 20s! What happened in mid '01 that caused it to tank like that? I have a hard time believing it's because of the disappointment over the PowerMacs released around that time... sure it's a factor, but dropping that much?

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  • Reply 1 of 8
    scottscott Posts: 7,431member
    Ummmm? Two for one split and that whole "stock market down" thingy?
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  • Reply 2 of 8
    idudeidude Posts: 352member
    Here's what happened. During that whole upward movement, Apple decided to have a 2 for 1 split. That happened at $100, so it went to $50. A short time after that, Apple issued a profit warning (I don't remember if it was a loss or lower profit). Anyways, overnight it fell about 30 points. I've never have figured out why. EVERY computer company was strugling then, as now. I think it was because Apple was the 1st out the door admitting lower profits, and got pounded for it.
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  • Reply 3 of 8
    lucaluca Posts: 3,833member
    I know the stock market has gone way down since 99-01, but that can't explain the extremely sharp drop.



    The 2 for 1 split makes perfect sense now. That's just when they double the number of shares at half the price each?
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  • Reply 4 of 8
    ghost_user_nameghost_user_name Posts: 22,667member
    [quote]Originally posted by Luca Rescigno:

    <strong>I know the stock market has gone way down since 99-01, but that can't explain the extremely sharp drop.</strong><hr></blockquote>Did you miss iDude's post? That's EXACTLY what happened. Apple was the first company to report lowered profits (but not a loss, IIRC) and they indeed got hammered. That was the official end to the booming stock market we were enjoying. Other companies followed soon after with lowered expectations and had dropping stock prices also.



    Anyway, it's not smart to judge a company's financial health based solely on stock price. There are a LOT of other factors to consider.



    edit: here's the report iDude mentioned:

    <a href="http://www.apple.com/pr/library/2000/sep/28q4.html"; target="_blank">Apple to Report Lower than Expected Fourth Quarter Earnings</a>



    [ 09-17-2002: Message edited by: Brad ]</p>
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  • Reply 5 of 8
    lucaluca Posts: 3,833member
    [quote]Originally posted by Brad:

    <strong>Did you miss iDude's post? That's EXACTLY what happened. Apple was the first company to report lowered profits (but not a loss, IIRC) and they indeed got hammered. That was the official end to the booming stock market we were enjoying. Other companies followed soon after with lowered expectations and had dropping stock prices also.[ 09-17-2002: Message edited by: Brad ]</strong><hr></blockquote>



    Okay. I just am not an expert in that sort of thing. I thought that there would be a gradual drop, but apparently not.



    I wasn't really trying to judge the health of the company solely on stock price, but it's still a factor. I was just wondering what would cause a sharp drop, and I didn't know it would go down quite that fast.
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  • Reply 6 of 8
    eugeneeugene Posts: 8,254member
    On September 29, AAPL tanked. Intel and many other stocks did too around that time. That was the beginning of the dot-com bust. The stock lost half its value in one trading session, from 50-something to 20-something.



    No graph you'll ever see will show a dip when a stock splits... AAPL's five-year high was around $145 pre-split...so $70-ish post-split



    [ 09-17-2002: Message edited by: Eugene ]</p>
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  • Reply 7 of 8
    the cool gutthe cool gut Posts: 1,714member
    [quote]Originally posted by Luca Rescigno:

    <strong>I was just online and I was looking at a 5 year graph of AAPL stock... it rose steadily from mid '99 to mid '01... and then it tanked! From the 50-70 range all the way down into the 20s! What happened in mid '01 that caused it to tank like that? I have a hard time believing it's because of the disappointment over the PowerMacs released around that time... sure it's a factor, but dropping that much?</strong><hr></blockquote>



    From what I believe, from the late 90's to '01, Apple was taking in around 150-200 million per quarter. They are now taking in around 20-30 million a quarter.
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  • Reply 8 of 8
    smithjoelsmithjoel Posts: 240member
    %5 market share + industry with razor thin margines + slow economey = bad stock price
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