Apple’s Stock Dips Below $600

| Apple Stock Watch

Shares in Apple Inc. sold off on Monday, dragging the stock down more than three percent in strong volume. The stock dipped below US$600 for the first time in April, and is off not quite $50 from its closing high of $636.23 set on April 9th.

AAPL Chart

AAPL Chart for April 16th, 2012
Source: Yahoo! Finance 

The broader markets are mixed—the DOW is in positive territory at 12,972.460, up 122.87 (+0.96 percent), while Google and Apple combined to help pull the NASDAQ to 2,997.050, down 14.28 (-0.47 percent)—and there is no Apple-specific news sparking the sell-off.

ISI Group analyst Brian Marshall said in a research note covered by MarketWatch, “We are not hearing anything new or incremental for the weakness in Apple stock. This could be a simple ‘collapsing’ on its own weight given the year-to-date move.”

At its height, Apple’s stock had risen 57.1 percent in 2012, alone. A staggering gain, profit taking (or a correction) had to happen at some point. Even with the sell-off of the last few trading sessions, the stock is still up $181.35, or 47.8 percent since it closed 2011 at $405 per share.

As noted above, shares of GOOG are also down, and were trading at $608.48 per share, down $16.12 (2.58 percent), also on strong volume.

As of this writing, AAPL was trading at $586.35, down $18.88 (-3.12 percent), on strong volume. Apple’s market cap sits at $546.7 billion, still easily the world’s most valuable company.

Apple will announce its March quarter earnings on April 24th.

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



There was speculation earlier today that AAPL and GOOG were both down as a result of the upcoming addition of Texas Instruments as a component of the NASDAQ-100 Index and the NASDAQ-100 Equal Weighted Index before Monday, April 23, 2012.

Could the drop be due to institutional investors adjusting their portfolios? And nervous nellies panicking in turn? But it could be just a correction, as the analysts call it, to AAPL’s meteoric recent rise. And in another month or so, we might call it a blip, if AAPL tops $650, as many analysts suggest.

Lee Dronick

Another possibility Buck is that investors are concerned about the ebook investigation.

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