Apple stock falls below 200-day moving average, drags down Dow Jones Industrial Average
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.
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."
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.
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."
Comments
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
The FUD is strong in this article my young Padawan.
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.
There is so much misleading and out of context info up there it's amazing.
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.
If AAPL will come close to $100 i will consider investing again, because it will be good opportunity.
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.
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.
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.
They wouldn't "dip into" any of their foreign cash, they'd just sell more bonds or borrow at today's ridiculously low rates.
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?
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.
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.
Agreed. Great time to buy shares before the new iPhones come out, for both individuals and Apple itself.
What are you talking about? AAPL is at a 6-month low.
The stock is down because people aren't willing to put more money into the stock, even at these levels. While I am an order of magnitude more confident in AAPL now than I was in 8/2012, I am not going to try to catch a falling knife again. History makes me think it will drop to $90 soon. (History being I have calls with $100 strike.)
You need more investors like Icahn to want the stock in large numbers to make a difference at this point-- to be buying up $12-20B in stock for the long haul. Private investors can't move the needle... unless they think APPL is the next ...whatever. With the press down on them, don't expect relief any time soon.