14 DAY TRIAL // People who own shares of Apple are watching in dismay as the stock plummets. In less than a week the stock has tanked significantly, and as the share price keeps dropping more and more people are getting out.
Last week, on Wednesday, Apple's shares hit a new all time high of $192.68. Since then, the price of the stock has dropped to $153.76. The $38.92 per share difference in little under a week is huge, just over a fifth. While many are discussing whether it would be better to use this as a buying opportunity or to get out while they still can, others are asking what could have possibly caused this.
Looking at Apple, one comes up empty-handed for possible explanations. The company remains debt-free, with a huge war-chest of cash that it can use for anything, Mac and iPod sales remain record high, iTunes is still the king of the mountain, the iPhone remains undisputed, Leopard is thrashing Vista in nearly all reviews, and, last but not least, Steve Jobs is still CEO and in good health. The only significant event that took place since last Wednesday was the European iPhone launch, which by all indications went well. The last such significant dip occurred after false reports of iPhone delays had been published, but this time there was no such cause. It would seem that Apple's stock is suffering because of larger market forces such as banking issues, oil prices, housing and consumer credit concerns.
Another question on everyone's mind is just how much more can the stock tank. So far, the company has lost approximately $33 billion in market value, putting it back below Intel and IBM, and there are no indications that it has started to stabilize. Looking ahead, Apple is expected to have its strongest quarter in a long time, with the company itself offering unusually high guidance, above even street expectations.