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February 16th, 2000

[4:00 PM] Apple Stock Watch: Apple Stock Tanks After MACWORLD Product Releases
by Wes George

The old cliché, "buy on the rumor, sell on the news" proves to be sound advice after Apple announced a slew of G3 PowerBooks, G4 and iBook upgrades in Tokyo. AAPL, which was a Valentine's Day bargain at $109, soared to $119, a new closing high by yesterday afternoon, but sold off today as speculators rushed to take profit.

According to ZDNetNews Steve Jobs said that Apple held the fourth-biggest market share for PCs in Japan at 7.8% in the last quarter of 1999, reflecting the popularity of its iBook and iMac. "We would like to see the share go even further. We know we have the strongest product line Apple has ever had," Jobs said.

Apple gave back 4 7/8 or 4.10% to close at 114 1/8 on 3.37 million shares traded.

The Nasdaq gained 6 points to close at 4427. Volume was 1.77 billion shares.

The Dow lost 156 points (1.46%) to close at 10561 with a billion shares traded. The small cap stocks pushed the Russell 2000 to a new high.

The S&P 500 lost 15.23 (1.09%) to close at 1387.58.

In Apple related businesses: Akamai gained 23 5/8 to close at 246 1/8 after announcing a content streaming deal with AOL.

ARM Holdings rose 5 dollars to close at 218. Motorola lost a buck to close at 147 15/16. IBM lost 1 1/2 to close at 115 5/8. Shares of Earthlink (ELNKD) gained 3/16 to close at 22 1/8. Macromedia gained 4 9/16 to 67 15/16.

Adobe announced a Japanese version of Adobe InDesign planned to ship in fall of 2000 at MACWORLD Expo and the stock soared 9 5/16 to close at 98 3/16.

Apple's competitors: Compaq slipped 1 3/16 to close at 25 13/16. Intel lost 4 13/16 to close at 107 3/16 dollars. Gateway lost 1 1/2 to 55 1/2. Dell gained a fraction to 38 dollars.

Hewlett Packard beat estimates of $0.78 per share by a 2 pennies. Hewlett Packard gained 4 5/8 to close at 129 3/8.

Analyst Daniel Niles of Robertson Stephen said in an interview with CBS MarketWatch he has "buys" on Compaq, Dell and Gateway. "I think all three stocks will do very well. There are just different risk profiles for each. Compaq has potential to double or triple over the next 12 to 18 months. I think Dell has at least 50 percent upside."

The big launch of Win2000 is tomorrow. Shares of Microsoft slipped 15/16 to close at 97 5/8.

In other news: Strong new home construction in January in spite of harsh weather and higher mortgage rates raises the stakes on tomorrow's testimony by Alan Greenspan before Congress. Housing starts were up by 1.5% in January to the highest level of 1999.

According to the Wall Street Journal, "Even with the steady advance in mortgage rates last year, sales of both new and existing homes posted records. Economists say that plentiful jobs, rising incomes and stock market gains all have helped make Americans feel wealthy and in the buying mood."

The bellwether 30-year US Treasury bond traded down by 6/32 to 99 27/32. The yield, which moves inversely to the price, rose to 6.26% from Tuesday's 6.248%.

In the week ahead: On Thursday, Federal Reserve chairman, Alan Greenspan, delivers his semiannual Humphrey-Hawkins testimony before the House Banking Committee while the producer price index for January is released in the morning. On Friday the all important inflation indicator, the consumer price index for January is released by the US Labor Department.

For full quotes on all the companies mentioned in this article, we have assembled this set of quotes at Yahoo! for your reference. We also have many of 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.


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