Apple stock rebounds 7.21% after hitting half-year low
AAPL stock closed up 7.21 percent by the end of trading on Monday, breaking a recent slump that saw share values drop down to a six-month low of $527.28 last week.
While still far from the mid-September high of $705.07, Apple stock gained over $38 to close at $565.73, up 7.21 percent from the day's start. The rise brings an end to nearly eight weeks of losses as skittish investors began dumping shares after value peaked two months ago.
Analysts have speculated that AAPL's precipitous fall can be blamed on hedge fund and individual investors' worries of an anticipated U.S. capital gains tax rate hike expected to hit in 2013. While a raise in tax liability may be a factor, a more likely scenario is the compounding of multiple variables such as Apple's new product introductions and the company's fiscal fourth quarter miss.
Despite a 58 percent rise in iPhone sales year-over-year, which beat the Street's expectations, iPad sales were seen as soft at over 14 million units. Analysts expect those numbers to pick up as consumers were assumedly as waiting for the new iPad mini to debut, shipments of which are thought to be much higher than anticipated. Apple itself announced that over three million iPad minis and fourth generation iPad models were sold over the devices' first weekend of sales.
As of Monday, AAPL's market capitalization is at $532 billion, down from the almost $660 billion high in September.
While still far from the mid-September high of $705.07, Apple stock gained over $38 to close at $565.73, up 7.21 percent from the day's start. The rise brings an end to nearly eight weeks of losses as skittish investors began dumping shares after value peaked two months ago.
Analysts have speculated that AAPL's precipitous fall can be blamed on hedge fund and individual investors' worries of an anticipated U.S. capital gains tax rate hike expected to hit in 2013. While a raise in tax liability may be a factor, a more likely scenario is the compounding of multiple variables such as Apple's new product introductions and the company's fiscal fourth quarter miss.
Despite a 58 percent rise in iPhone sales year-over-year, which beat the Street's expectations, iPad sales were seen as soft at over 14 million units. Analysts expect those numbers to pick up as consumers were assumedly as waiting for the new iPad mini to debut, shipments of which are thought to be much higher than anticipated. Apple itself announced that over three million iPad minis and fourth generation iPad models were sold over the devices' first weekend of sales.
As of Monday, AAPL's market capitalization is at $532 billion, down from the almost $660 billion high in September.
Comments
Lol... Someone bought some stock last friday and is having a hell of a party right now.
Dividends were paid out on Thursday. Anyone how has them automatically reinvested bought on the low.
Quote:
Originally Posted by pedromartins
Lol... Someone bought some stock last friday and is having a hell of a party right now.
How about someone who bought April 2013 calls on Friday that went up 60% today?
Happy about that....
Quote:
Originally Posted by corey2157
Dividends were paid out on Thursday. Anyone how has them automatically reinvested bought on the low.
Anyone who has enough stock to care about the amount of money the dividend netted him already bought FAR lower than this morning's prices.
They manipulated the shit out of AAPL to get it down this low, and now they are buying back in to drive it back up. It's all a sham.
http://tech.fortune.cnn.com/2012/11/09/apple-its-mojo-and-doug-kass/
Quote:
Originally Posted by pedromartins
Lol... Someone bought some stock last friday and is having a hell of a party right now.
Not as big a party as the guy who sold near the top
Quote:
Originally Posted by Ireland
They manipulated the shit out of AAPL to get it down this low, and now they are buying back in to drive it back up. It's all a sham.
Those margin calls are a bitch.
so true... the Rigged Casino is working as it should.
Originally Posted by Zod Buster
…the Rigged Casino is working as it should.
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I feel like that image should have the words OF THE at the end so that it repeats UNITED STATES and just keeps on going around and around and around and...
Originally Posted by SolipsismX
I feel like that image should have the words OF THE at the end so that it repeats UNITED STATES and just keeps on going around and around and around and...
So do I feel that way also.
Quote:
Originally Posted by cameronj
How about someone who bought April 2013 calls on Friday that went up 60% today?
Happy about that....
Please correct me if I'm wrong on this. Are you saying that at today's closing of $565.73 which was up 60% for you, you have a 4/2013 strike price of $353.59/share? I'm going on an assumption that you don't work at Apple which would have granted you shares at that price. If that's the case, someone is thinking that Apple will be worth $353.59/share in April of next year?
I don't do options, so I'm just being curious...
Quote:
Originally Posted by sflocal
Please correct me if I'm wrong on this. Are you saying that at today's closing of $565.73 which was up 60% for you, you have a 4/2013 strike price of $353.59/share? I'm going on an assumption that you don't work at Apple which would have granted you shares at that price. If that's the case, someone is thinking that Apple will be worth $353.59/share in April of next year?
I don't do options, so I'm just being curious...
options are a right to buy/sell at a certain strike price. e.g. an april call option with a strike price of 550 was worth less than $35 on friday and it closed at $56.45 today
Quote:
Originally Posted by cameronj
How about someone who bought April 2013 calls on Friday that went up 60% today?
Happy about that....
Someone who bought Nov 23rd 2012 calls made 1000%
Happy about that....
You should be!
As long as you don't confuse luck and skill......;)
I still say it's in the cards. If there's an iPhone 5S, I'll be the 6 uses lqmt for the frame at least, maybe also the backing.
Quote:
Originally Posted by sflocal
Please correct me if I'm wrong on this. Are you saying that at today's closing of $565.73 which was up 60% for you, you have a 4/2013 strike price of $353.59/share? I'm going on an assumption that you don't work at Apple which would have granted you shares at that price. If that's the case, someone is thinking that Apple will be worth $353.59/share in April of next year?
I don't do options, so I'm just being curious...
Nope, an option is just like any other security in that its price changes from day to day. So the right to buy Apple at 600 in April cost around 20 at close on Friday and now costs about $34. Now, I wasn't lucky enough to buy it that cheaply, as I bought it before the market opened on Friday. But today still sure felt good. I'm banking on an eventual pop back to and past 600 before February, which should give me some very solid profits. Risky bet and you have to know that if you bet wrong, you may lose your entire investment, but if you want to multiply your profits at the risk of losing it if you're wrong, that's a good way to do it.
Whew. I was getting nervous there that the bears were right. Even though I knew logically that it was a classic AAPL funk.
I need to stop reading investment blogs.
Quote:
Originally Posted by anantksundaram
You should be!
As long as you don't confuse luck and skill......
For me it always seems to be a little of both when I make money.
When I lose money I always blame it on luck.
Quote:
Originally Posted by Ireland
They manipulated the shit out of AAPL to get it down this low, and now they are buying back in to drive it back up. It's all a sham.
http://tech.fortune.cnn.com/2012/11/09/apple-its-mojo-and-doug-kass/
I thought you knew that nobody can manipulate AAPL.