September 23rd, 1999
|[4:30 PM] Apple Stock Watch: Apple Tumbles Another 10% In Market Bloodbath
Apple's stock plummeted again today in one of the bloodiest days on Wall Street in the last several years. Tech stocks started a sell-off that quickly spread to the rest of the markets and eventually brought the Dow below the 200 Day Moving Average, a number considered to be a key support level. Breaking below that level is considered a possible signal that the markets could head even lower. According to a Reuters report:
Steve Ballmer, the balding President of Microsoft, also caused a ruckus when he announced publicly that he felt tech stocks were overvalued. According to a report from The Motley Fool:
Apple ended up falling 7 points to close at 63 5/16, a loss of 7 or another 9.96% on top of the 12.41% it fell on Tuesday after issuing an earnings warning. SInce its record high reached on Monday's closing of 79 1/16, Apple has fallen some 19.90%. Volume continued to be heavy with 10,204,80 shares trading hands. Combined with the shares traded on yesterday and Tuesday, Apple has had almost 3 times normal weekly volume in just the last three days.
The damage was not limited to Apple however. Macromedia, Motorola, and Symantec also saw losses, though Adobe managed to post a 1 point gain. On the PC front, all the major players also got bloody noses with Intel, Microsoft, Dell, IBM, Gateway 2000, Hewlett-Packard, and Compaq all closing lower.
The Dow closed at 10318.59, a loss of 205.48, while the Nasdaq closed at 2749.83, down 108.33.
For full quotes for all the companies mentioned in this article, we have assembled this set of quotes at Yahoo! for your reference. We also have these same quotes reported live (20 minute delay) on our home page. For other stories regarding Apple's stock activity, visit our Apple Stock Watch Special Report.
The Mac Observer Spin: Hear, hear! Mr. Ballmer! For once we agree with you, Microsoft's stock is certainly overvalued as are many tech and Internet stocks. Apple is the one exception, being vastly undervalued when compared to the rest of the bloated tech and Internet stocks.
As for where we will go next: Analysts spent the day answering the question of "where is the bottom of this market?" by asking "Where is the bottom of this market?" A viscous circle indeed. There seem to be very few people who know what's going to happen next, and that most certainly includes The Mac Observer. It is possible that investors could once again look at Apple as a safe stock due to its very low P/E ratio, but it is also possible that Apple's stock will remain mired in the muck of the tech sector until good news like the impending iMac upgrade is announced. It is also possible that Apple will simply continue to be swept along by overwhelming market forces no matter which way the tide runs.