Apple Plunges Most in 5 Years

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Not even a month after Apple’s stock hit $200 for the first time ever, stocks plunged eleven percent , the most it has ever fallen in more than five years .

Apple fell 11 percent, the biggest drop since July 2002. The stock, which more than doubled last year, lost $16.64 to $139 at 4:02 p.m. New York time in Nasdaq Stock Market trading. iPod sales were little changed in the U.S., signaling that demand for consumer electronics may be waning.
 
Glad I never bought them.

I thought they were over valued. Could have made a lot, sure, if you got in early but you'll do that with a lot of companies. Never bought Goog either.

Intel is paying me now. :D
 
I sold everything Apple at $200. I found it hilarious when people were talking about how they had nowhere to go but up in the other thread. The stock was massively overinflated based on expectations of some ground-breaking product at MacExpo and overenthusiastic expectations. All they got was the turd that is the Air, and disappointing profit.

Apple is a high-end toy maker. North America is headed into a recession. They won't fare well.
 
Apple is a high-end toy maker. North America is headed into a recession. They won't fare well.

While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.
 
While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.

Just so you understand, we live in a global economy so everyone in the world will feel some effect from the recession.
 
While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.



Our 'lieing' President? Cause of course, he is solely the one who caused the sub-prime fallout in the real estate industry :rolleyes:


Please, did you see that every market fell on Monday? You dont think that a recession in the US will lead to weaker economies elsewhere (it will)
 
The [H]cnbc crew is on the case.

May as well become part of the street.com with all of the stock news on here these days.
 
While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.


Patricia Croft said:
"It's a myth to believe that we can have a recession in the U.S. and Canada can come through unscathed,"

CIA World Factbook said:
Canada:
Exports - partners:
US 81.6%, UK 2.3%, Japan 2.1% (2006)

Canada exports THIRTY-FIVE times more to the US then to any other country in the world. Canada CANNOT escape recession unless the US is able to curb it's recession to extremely minimal proportions.
 
Let's not get too off topic.

Apple's shares fell because they don't make NECESSARY items. They make nice to have items. There's a difference.

It does not matter that we are in a recession or if that has effects on other markets. The point is that when our market is down we cut back on the things we would like to have and spend our money on the things we have to have. I chose Intel becuse, almost no matter what, we need CPU's. There are no longer nice to have items. We won't be going back to the typerwriter in any modern economy so people still have to buy CPU's. They don't have to buy iPod's.
 
Gotta love how people blame Bush for their stupidity. Taking a play from the demoncrat's playbook.

Oh crap, the john is stopped up, it's Bush's fault. Oh crap, Hillary is fugly and Bill ran around with a beautiful intern, it's Bush's fault. Oh crap, Apple's overpriced stock plunged in a huge correction, it's Bush's fault. Steve wears turtlenecks, it's Bush's fault. Oh crap, that subprime loan we got has bit us in the butt because we were too dumb to check it out, it's Bush's fault.
 
Gotta love how people blame Bush for their stupidity. Taking a play from the demoncrat's playbook.

Oh crap, the john is stopped up, it's Bush's fault. Oh crap, Hillary is fugly and Bill ran around with a beautiful intern, it's Bush's fault. Oh crap, Apple's overpriced stock plunged in a huge correction, it's Bush's fault. Steve wears turtlenecks, it's Bush's fault. Oh crap, that subprime loan we got has bit us in the butt because we were too dumb to check it out, it's Bush's fault.

I think most people come to this forum to talk tech, not politics. Let's try and keep it that way...
 
I think most people come to this forum to talk tech, not politics. Let's try and keep it that way...

He mentioned Steve's turtlenecks and Apple's stocks. He's safe. Besides, he's absolutely correct. It's moronic to blame ONE man for millions of companies in the US, much less the world.

If Bush had that much power, Sadam and Kim Il would've stepped down peacefully and the Hamas would stop shooting rockets into Israel.

Oh, and Apple's stocks wouldn't have plunged either. :rolleyes:
 
Can't part of it be blamed on our (Usa) trade deficit?
Import too much and don't export enough...Walmart FTL :p
--I've always thought of apple as more of an Icandy/Toy company.
 
Let's not get too off topic.

Apple's shares fell because they don't make NECESSARY items. They make nice to have items. There's a difference.


Apple doesn't make nice things to have. They only make things for the cult they have created.
 
Gotta love how people blame Bush for their stupidity. Taking a play from the demoncrat's playbook.

Oh crap, the john is stopped up, it's Bush's fault. Oh crap, Hillary is fugly and Bill ran around with a beautiful intern, it's Bush's fault. Oh crap, Apple's overpriced stock plunged in a huge correction, it's Bush's fault. Steve wears turtlenecks, it's Bush's fault. Oh crap, that subprime loan we got has bit us in the butt because we were too dumb to check it out, it's Bush's fault.

Its really hard to take what you say seriously, i mean you seem to have your head on straight and then you get to the bolded part and...well...you may as well have just finished off what you said with "blah blah blah blah"
 
Its really hard to take what you say seriously, i mean you seem to have your head on straight and then you get to the bolded part and...well...you may as well have just finished off what you said with "blah blah blah blah"

It must be Bush's fault then..:rolleyes:
 
While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.

I really wish that were the truth, but if the States tanks, then we're going to follow in the backwash. Without googling, I believe Canada exports approx. 70% to the USA. If they're not buying then that sucks for us.
 
Just read Nemesis' post. "Export to US is 81.6% in '06". Wow.

I guess after the iphone people realized that there are better products out there. Still like my nano though.
 
I kinda exspected Apple to take a plundge since it WAS so high. People love to cash in when the getting is good.
 
[RIP]Zeus;1031968651 said:
Apple doesn't make nice things to have. They only make things for the cult they have created.

I agree to a point. What they seem to do pretty well is dumb down devices so that average people can use them without too much trouble. From what I hear, it just works.

But it is priced too high and is wrapped in a "culture."
 
* Put on your gross generalization hat for this *

I'm sure Canada will feel the effect of a U.S recession to a large degree, but I am not sure it will be to the extent that 70-80% of exports seems to indicate. I thought a large part of Canada's exports to the states was raw materials. Trees, oil, uranium, etc. Even in an economic recession, those raw materials make 'must have' items. Furniture, paper, boxes, gas, power... I'm not sure exactly what the numbers are, but it is something to keep in mind when considering the economic effect.

As for Apple, as much as I do not like their products, I recognize a lot of people do. They seem to have a core business in the U.S., but quite a bit of followers in Europe and a smaller, but growing following in Asia. I think if they make more of an effort to grow internationally, they could weather a downturn quite well. Don't forget their market segment. They typically don't sell to people 'just' getting by. Their market seems to be higher income brackets (except for the ipods). For those people, cutting back may not be buying a new Mercedes or Infinity every 3 years, but instead, 4 or 5 years. I doubt they will cutback to the point of not buying a new computer. I'm looking more toward the professor, CEO, developer and graphics artist in that segment.

That being said, their sales WILL drop, to a degree, as will sales of most everything. There are a lot of 'normal' people (students, normal income families, schools) that will cut back or put off buying new computer hardware.
 
If Apple would sell things closer to what they cost to make, then I'm sure they would be still "changing the world."

IPHONE = 600$ street... 200$ to make.
IMAC = 3500$ street... 1200$ in parts.

I know MACs are easy to use, and tons of other things that make them *quote unquote* cool....
But seriously they really need to get off their high horse with these SHITTY commercials badmouthing PC.

When was the last time I saw a kid take a MAC to a LAN party????

Never.
Oh wait I forgot... Quakecon, to play OLDER LAST GEN GAMES because NOTHING IS WRITTEN FOR MAC's stupid fucking OS/Hardware.
 
People forget that when an economy has been strong as long as our's has, there is going to come a time when there will be adjustments and corrections. People automatically assume doom and gloom. It happens a lot in election years because of the uncertainty and this election year has a HUGE uncertainty to it right now, on top of other things going wrong.

I said weeks ago when Apple hit 200, that it was going to correct soon because it was way overpriced. Crap like that happens. People cash out when they think the time is right then others see people cashing out and they cash out and it's a dominoe until it settles to more reasonable levels.

The housing market was a making of it's own disaster. The only people responsible for it are the banks that scammed people into subprime loans with variable rates and it's the people's fault for not doing their homework and doing the numbers to see what worst case scenario would be and could they handle it. It's like building a cheap house in the middle of tornado alley. Instead of bailing people out with taxpayer money, they should force the companies to redo the loans to fixed rates or something.

Blame the people that had the control over the stuff they controlled and Bush over stuff he controlled. One man does not have the power to be the blame for every thing wrong. Hell, congress with their performance that's worst than Bush's approval rating shares a lot of the blame for stuff.

Sorry for the off topic parts. It's just ticks me off to see people blame a President, no matter who it is, for every thing they see wrong in the world.
 
The stock outperformed on Q1 earnings but fell on lowered Q2 guidance, this has happened to the stock for the last five years like clockwork. Forward guidance is everything when it comes to stocks since the immediate price is based on the future. That said, Wall Street doesn't look very far into the future, and when you follow up your two busiest quarters, back-to-school and holiday shopping, with your slowest quarter, Wall Street will react accordingly. This will continue to happen until Apple's income stops being so seasonal, something that won't happen anytime soon. The fact that this is in the middle of the largest stock market selloff since the bubble burst, something that squashed the usual Macworld rally, is compounding things even more.

Those of you who are investors with cash would do well to accumulate slowly over the next five months. Apple had 40% year over year growth for Q1, $18 billion in cash, zero debt, huge margins on everything they sell, with a customer base that continues to grow. This is bargain shopping season.

Those of you who bought at $200 will have to hang in there for a while.
 
Ditto this on Google, btw, another tech that has been beaten down ridiculously in the last month. For growth stocks, Google and Apple have amazing PEG ratios right now. I wouldn't call them value stocks but for growth they are getting pretty dang cheap. The only reason I wouldn't jump all in at this point is that there is still huge uncertainty in the market right now. Slow accumulation over the next several months will help to average in a decent price with lower risk. Have we seen a bottoming out in this market? Who knows, sellers are getting tired, but that the same time I will be surprised to see a rush of buyers at this point.

A big part of me really wishes the Fed hadn't stepped in earlier this week that that 3/4 point cut. Just let there be that day of capitulation where the market just sells flat out, flushes things out, then we can get back to buying again.
 
Last thing. As of 1/24 Apple was at the top of the "buy on weakness" list here by a very wide margin: http://online.wsj.com/mdc/public/page/2_3022-mfgppl-moneyflow.html?mod=topnav_2_3002

It indicates the highest money inflow on a stock that is trading down. Apple was at the top of the "sell on strength" list just a few weeks ago as the selloff began. This obviously doesn't indicate a bottom but it does say that there is big institutional money coming in and accumulating at these levels, just something to keep in mind.
 
While I agree the Apple is a high end toy maker. North America is definitely NOT headed into a recession.

The USA is definitly heading into a recession. Canada's economy is a a huge boom right now, there is no way it is going into a recession anytime soon. I am not sure how Mexico is doing either.

The USA's economy is the only one in trouble. You can thank your lieing president for most of your troubles.

And who exactly is Canadas biggest trading partner? What happens when said trading partner has less money to spend on Canadas goods?

Try not to be so myopic.
 
And who exactly is Canadas biggest trading partner? What happens when said trading partner has less money to spend on Canadas goods?

Try not to be so myopic.

Exactly, ditto other foreign and emerging markets. Forget financials, small caps, and high flying tech, foreign stocks are what have taken some of the largest hits in the last few weeks as a result of US recession fears.
 
The fall of Apple's stock was inevitable. No, the iPhone and sixth-generation iPod weren't that revolutionary. People realized that and were waiting for a new product. No new product at MacWorld = plunging stock. The economic slump isn't helping them, either.

Oh, and why the pending recession Bush's fault? The Federal Reserve has more control over the economy than the executive branch. Bush recently authorized tax rebates to stimulate the economy, and that's about all he can do right now.
 
Apples stock fell because it was already huge and the MacBook Air is a stupid idea. Stop looking so deep into it.
 
Apples stock fell because it was already huge and the MacBook Air is a stupid idea. Stop looking so deep into it.
.

It fell on forward guidance for Q2 and the bear market it seems we are going into. It is really simple. Stock prices are based on future potential for earnings. Growth stocks are more highly valued than others because of potential for future growth. This is why that particular stock goes up in value so much from late Spring through the holidays. It is also why, every year like clockwork, it takes a big hit after reporting guidance for Q2, their slowest quarter every year. If you follow up your two busiest quarters with your slowest one, Wall Street will react accordingly. I have traded that drop twice by shorting Apple around it and profited. Just look at the chart going back the last four or five years, its right there.

Until Apple stops being such a cyclical stock, following their two busiest quarters with their slowest, this seasonal drop will continue happening. What is different about this year is that the Macworld pop didn't happen. There were no huge surprises at Macworld (the Air is a dud) and more importantly, the markets were crashing huge at exactly the same time (biggest since 2002). The S&P was down over 10% and the NASDAQ and Russell 2000 were down 20%, huge, and everything is getting slaughtered right now.

It is important to note that news means nothing. People trade around news like product announcements or whatever all the time and lose money, then they have no idea why. Forward guidance is way way more important, as again, a stock's price is based on the future. It is ridiculous that great tech companies like Apple, Microsoft, Nintendo, and Google are getting crushed right now, but until this bear market shakes out then people will take the big money off the table they made from them last year and wait to jump back on board. I got out at around $175 when it was apparent that no Macworld pop was going to happen and still made over 100% in under a year. I don't blame everyone who jumped out in the first week of the year with so much uncertainty with the financial and bank sectors. I plan on jumping in on Apple and several other great companies very very soon, most of which I got out of back in November, as there are great bargains out there right now.
 
I really have to emphasize though, any stock buying I'm doing now will be spread out over the next several months. No way I'm going 100% in with my free cash with this much insanity and uncertainty in the markets right now. Even though I believe everything will be more or less flat for the next several weeks/months, I'll risk losing a few points of potential profit in exchange for a better nights sleep in case another shoe drops and things fall big again.
 
The subprime lending madness will not just affect the us, many of those "investments" were sold internationally to foreign investors when highly reputable companies like wells fargo and jp morgan backed them and pushed them. There is plenty of blame to go around. Greedy lenders who damn well knew what they were doing to people, foolish people thinking they can get things far beyond their means signing up for adjustable rates that were always going to kill them, politicians and financial watchdogs who never raised an eyebrow. This is a big one. Will be felt all over the world. I think alot of people are deluding themselves as to just how bad this will be.

As far as apple goes, uhhh what did people expect? With the exception of the ipod, its a niche market!
 
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