AAPL Sheds Another 4%, Closes at $192 Per Share

| Apple Stock Watch

Shares in Apple Inc. continued to fall Friday, as the stock pared another 4% of its value. As with yesterday's 4% drop, the losses came amidst a broader sell-off, and this time it was Microsoft's better-than-expected results that couldn't prop up tech stocks.

On Thursday, Microsoft turned in results that were better than expected for the December quarter, with revenue of US$19.02 billion, a 14% increase over the year-ago quarter. Net income was $6.66 billion - seriously - which was up 60% year-over-year.

The company attributed the growth to a successful Windows 7 launch - the operating system went on sale in October of 2009. While one could be excused for thinking that a record quarter from Apple and growing sales of Windows would be enough to cheer investors on tech stocks, the markets have been pulling back.

At least one analyst is pinning that pullback on profit taking fueled by fear. Hank Smith, chief investment officer of equities at Haverford Investments told Marketwatch, "We hear it every day from our clients. Even [if] they've missed some of this bull market off the lows, they are just deathly afraid of being whipsawed [by a fresh bout of selling]."

Shares in Apple closed at $192.063, down $7.227 (-3.63%). on heavy volume of 44.4 million shares trading hands. Shares in Microsoft also closed lower, at $28.18, down 0.98 (-3.36%), on very heavy volume of 74.2 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

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Lots of good news
Markets go down.

You know, it just won’t work if EVERYONE becomes a contrarian trader.


Constable Odo

Apple posts record earnings.  Shares go down.  Apple pulls in $5.8 billion more in cash reserve.  Shares drop further.  Apple changes accounting principles method and P/E is now 18.7.  Shares continue to fall.  Hey, Apple’s Steve Jobs look relatively healthy and announces iPad which will likely be a huge success.  Shares fall yet again.  I look up and notice that DJIA is sitting just a shade over 10,000 yet again.  I ponder that Apple was at $202 in December 2007 and now is at $192 two years later despite the hugely successful iPhone and increasing market share.  Sigh.  The DJIA has also shed almost 4000 points in that period.  The economy is still slumping.

So from a healthy $215 a share pre-earnings now to a sickly $192 is the two week or so journey of Apple long investors.  Not sure I can take any more of Apple’s good news.  Thank heavens the Apple loyalists still believe Apple will be at $250 in a few months right after Apple sells a million iPads in a week.  Hope springs eternal.

Tom Hurley

I was watching news feeds of the iPad introduction event, and made a quick check of the AAPL stock. It was rising! Whoa! Something’s wrong here. I have had stock in the company for about ten years now, and at almost every unveiling of the next great thing, the stock tanked.

Now that AAPL is down, things are normal once again. Whew!

Neil Anderson

Selling a million iPads in a week? How about in a day?

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