Apple's Stock Fluxes
I have some shares of Apple stock, and as a fan of Apple generally feel good about them, not wanting to really sell them for quite awhile, whether they dip to nothing or quadruple.
I'm not that savvy in the stock trade business and I'm trying to learn more as I invest more. We all know the market is in the dumps, with the price of fuel skyrocketing, etc., but what I don't really understand is why it affects tech companies like Apple so much.
How can Apple have the biggest quarter in it's history, making billions of dollars in profit, and then loose 20% of it's stock price within the week? I realize as I said before that all stocks are down with the economy, but this seems silly.
Just wondering what others are thinking that may have more experience than myself. Thanks for any thoughts!
I'm not that savvy in the stock trade business and I'm trying to learn more as I invest more. We all know the market is in the dumps, with the price of fuel skyrocketing, etc., but what I don't really understand is why it affects tech companies like Apple so much.
How can Apple have the biggest quarter in it's history, making billions of dollars in profit, and then loose 20% of it's stock price within the week? I realize as I said before that all stocks are down with the economy, but this seems silly.
Just wondering what others are thinking that may have more experience than myself. Thanks for any thoughts!
Comments
I have some shares of Apple stock, and as a fan of Apple generally feel good about them, not wanting to really sell them for quite awhile, whether they dip to nothing or quadruple.
I'm not that savvy in the stock trade business and I'm trying to learn more as I invest more. We all know the market is in the dumps, with the price of fuel skyrocketing, etc., but what I don't really understand is why it affects tech companies like Apple so much.
How can Apple have the biggest quarter in it's history, making billions of dollars in profit, and then loose 20% of it's stock price within the week? I realize as I said before that all stocks are down with the economy, but this seems silly.
Just wondering what others are thinking that may have more experience than myself. Thanks for any thoughts!
because the price of stock today represents where the company is likely to be 6 months to a year down the line.
The price of Apple was high because 6 months ago, people were predicting that the latest earnings report would be as it was just reported.
Now that the expectation has been confirmed, and the outlook on the horizon is much less certain, the stock represents that the people who expected the last earnings report, sold to make their profit - and whoever is buying now is anticipating not so good future earnings, or people will be buying now making a bet that future earnings will be higher than expected and the stock price represents something of a profit potential.