Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innovate

[Wildfire]

Apple's stock has steadily fallen to hit a six-month low, as investors wonder if the tech company is transitioning
away from being the innovative giant of Silicon Valley to just a traditional, reliable brand of note.

The stock closed at 525.62 on Thursday, with analysts saying mutual and hedge fund managers are running for
the door and frantically trying to offload their shares.

Analysts likened the flight to someone who ‘yelled fire in the theater’ but hefty holiday revenues from new Apple
products are expected to provide an earnings boost and edge the price back up by next year.

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Old and new: Former Apple CEO Steve Jobs (left, on March 2, 2011) passed away in October 2011. Tim Cook
(right, on March 7, 2012) served as COO under Jobs and took on the role of CEO in August 2011

 

[OverTheCounter]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

AAPL will eventually become another MSFT.

 

[GOD IS MY DOG]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

why stock price drop leh........................??


aiyah...................it was just me taking profit on my USD1Billion position lah...................

 

[blackmondy]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Is adding a new row of icons on the iPhone an innovation ?

 

[singveld]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

he cannot replace Steve, the iphone5 widescreen is a joke, so is ipad mini and also they stop supporting ipad after 2 years. He cannot cut it.

 

[Clone]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

The Halo Effect kicking in...

 

[johnny333]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

I see this as an oppurtunity to buy more Apple stocks at a cheaper price. Apple is still making tons of money. As an investor, my horizon is long term & I'm betting good things for Apple.

Many stocks are currently taking a hit because there is just too much negative news right now. The slowing down in China, the unresolved problems of Greece, Spain... The potential fiscal cliff in the US. It's all very scary:(

However even if I am wrong I am still happy with my AAPL investments because they are now paying dividens which is higher than the interest being paid by banks.



http://appleinsider.com/articles/12...-blamed-on-anticipated-capital-gains-tax-hike

Drop in Apple stock blamed on anticipated capital gains tax hike

By Mikey Campbell
After reaching a record high in September, Apple stock has suffered nearly eight straight weeks of losses as investors bail out ahead of potential capital gains tax hikes that could hit as early as next year.

Editor's Note: This article has been modified to reflect the expected 2013 reversion to the 20 percent U.S. capital gains tax of 2003. This article incorrectly stated that the rate would increase to 35 percent.

As noted by Reuters, AAPL stock has lost a quarter of its value, underperforming the S&P 500 average which saw a 7 percent decline over the same period.

Since its mid-September high of $705.07, the stock dropped precipitously and closed Friday at $527.68, losing some $170 billion in market capitalization. The publication pointed out that the market cap dropped is worth more than the entirety of Coca-Cola.

With a market value of around $493 billion, Apple still stands as the most valuable company in the world and leads second-place U.S. stock Exxon by about $100 billion.

The stock's fall may be attributed to a dumping of assets as investors prepare for a likely rise in capital gains and dividends taxes as part of a program to cut the U.S. deficit. Also part of the supposed deal is a round of government spending cuts, however high-income taxpayers are expected to take the brunt of the increases.

Because of Apple's meteoric rise, investors could be looking to sell the stock now to protect against the feared capital gains tax bumps by locking in earnings to offset the higher rates next year. The current 15 percent tax on dividends and capital gains is scheduled to reset by the end of the year, and will change to the 35 percent rate levied on normal income.

It appears that uncertainty over how the government will handle the so-called fiscal cliff is dissuading investors from picking up Apple stock at its current relatively undervalued price.

Once legislators decide on a future plan and the U.S. fiscal outlook is solidified, Apple shares are likely to start gaining traction once again, as many analysts still see the stock as being worth between $700 to $850.

 

[Leongsam]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

I see this as an oppurtunity to buy more Apple stocks at a cheaper price. Apple is still making tons of money. As an investor, my horizon is long term & I'm betting good things for Apple.

Who is the visionary who's going to come up with these "good things"? Who is the commanding the ship? Tim Cooke doesn't have what it takes.

 

[hairylee]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Tim Cook is no visionary.
He is just a excellent corporate leader.

 

[Leongsam]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Tim Cook is no visionary.
He is just a excellent corporate leader.

Cooke's strength is in supply chain management.

The problem with Apple now is that they still have an extremely talented team with loads of fantastic ideas. One person whom everyone respects has to call the shots as to which are winners and which will be duds. That person used to be Steve Jobs. Even he got it wrong on a regular basis but he delivered when it mattered.

His biography is a great read. In it, it describes one of his greatest talents as knowing when to say no.

 

[Wildfire]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Tim Cook is no visionary.
He is just a excellent corporate leader.

I seriously doubt Tim qualifies as an "excellent" corporate leader. At best he is just a boardroom manipulator with an eye on profit.
If he is, he would not have let go of his chief software architect and marketing guru in the midst of a technological war where rivals
are fast catching up.

Also, Steve would NEVER have rushed to market products that are "half-cooked" like Siri and iMaps.

 

[johnny333]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Who is the visionary who's going to come up with these "good things"? Who is the commanding the ship? Tim Cooke doesn't have what it takes.

Does Apple really need a visionary
Sales of Apple products are doing well & they are still expanding. e.g. China, south america,...

Tim Cook is just a member of a team. If they can continue to do what they've done in the past, I still think Apple is a good investment.

 

[OverTheCounter]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Cooke's strength is in supply chain management.

The problem with Apple now is that they still have an extremely talented

en to say no.

Steve jobs was a true innovator who brought apple from $5 a share in 2003 to $500 a share early this year.

Unlike bill gates he did not have to hijack other people's intellectual property to do so.

Now that Steve is gone and aapl has reached saturation pt, I don't see much upside to aapl except for dead cat bounces.

The sentiment displayed by johnny333 is typical of a retail investor operating in a post bubble climate. I saw this sentiment all the time in 2000 and 2001 after the NASDAQ had burst. Retail investor are always playing the last bull mkt n justifying their actions with reasoning dat is outdated.

 

[POSTMAN]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Need to find Steve Jobs underground.

 

[sense]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

 

[GOD IS MY DOG]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

don't worry about Apple lah..............

until they come out with...........iCondom...........and iDildo..........

 

[kiss]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

don't worry about Apple lah..............

until they come out with...........iCondom...........and iDildo..........

APPL > $600 is over-price.

My assessment of intrinsic value is $540 - $580 range.

 

[watchman8]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

AAPL will eventually become another MSFT.

Apple will be worse than Microsoft because the users are not corporates which are locked into the Microsoft enterprise system. Most of apple users will and can easily jump ship as alternative phone OS are easy to learn.

 

[OverTheCounter]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

Agree.Up your points.

Apple will be worse than Microsoft because the users are not corporates which are locked into the Microsoft enterprise system. Most of apple users will and can easily jump ship as alternative phone OS are easy to learn.

 

[The_Hypocrite]

Re: Apple stock takes a tumble to six-mth low, concern on new CEO’s ability to innova

TO all the tech experts here, i feel that its the beginning of the end for apple, as technology is converging and what Iphone can do, Google can do too,,soon the product differentiation between Iphone and Google and Winshit will be minimal and the macnuts will start to have a change of heart and be less reluctant to pay the premium that is seeing Apple through its huge profits.

Also, will google Android be able to replace windows for the home users? I mean for MS office etc, google has or will come out with its own version and there will be no need to use Winshit anymore,,is that possible soon?