Despite reporting a record quarterly profit, Apple's forecasts showed signs of slowing consumer demand for its products, particularly its iPhones Apple's stock has been on a steady decline for months. In fact, shares have plunged more than 36% from their all-time intraday high of $705, reached Sept. 21, 2012.
Full Answer
Why did Apple stock fall in December?
However, Apple issued lower-than-expected guidance for the fiscal first quarter (which ended in December), sending shares tumbling. That negative sentiment carried over to the month of December. AAPL data by YCharts. Moreover, there's been a lot of concern about how China-U.S. trade relations might impact iPhone sales.
Is Apple stock a bargain at $424 billion?
Since then, Apple's stock has dropped in value by nearly $230 billion, with its valuation slipping to $424 billion in just four months. With the decline, Apple is a relative bargain, trading at 10 times earnings estimates, down from a PE of 15 when the stock was at its highest point.
Did analysts cut their price targets for Apple stock?
At least a few analysts have cut their price targets on Apple over the last month, which can affect the stock's performance in the short term. IMAGE SOURCE: APPLE.
Is Apple a flight to safety stock?
In an extended bull market and amid renewed fears about another wave of Covid, Apple became a flight to safety trade amid heavy technology sector stock selling.
What caused Apple's stock collapse?
Apple has fallen during a bad week for equity markets, which are selling off stocks in nearly every industry on fears of Fed rate hikes, weakening consumer confidence, rising inflation and global supply chain challenges.
What happen to Apple in 2012?
Apple's stock has been on a steady decline for months. In fact, shares have plunged more than 36% from their all-time intraday high of $705, reached Sept. 21, 2012. Since then, Apple's stock has dropped in value by nearly $230 billion, with its valuation slipping to $424 billion in just four months.
What was Apple trading at in 2012?
AAPL - Apple Inc.DateOpenLowSep 22, 201224.5323.58Sep 15, 201224.9824.77Sep 08, 201224.3023.43Sep 01, 201223.7823.7366 more rows
How many times has Apple stock split 2012?
Apple's stock has split five times since the company went public. The stock split on a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014, and split on a 2-for-1 basis on February 28, 2005, June 21, 2000, and June 16, 1987.
Why did Steve Jobs call it Apple?
Why did Steve Jobs name the company Apple? In a 1980 video, Apple Co-founder Steve Jobs revealed the company, which was founded on April 1, 1976, was named 'Apple Computers' so as to list it before his previous employer Atari, in phonebooks. Jobs said the name epitomised "simplicity" and "sophistication".
What was Apple worth after 10 years of its start?
Explanation: In 10 years Apple had grown from just thr two of us in a garage into a $2 billion company.
What stocks will split in 2022?
Splits for July 2022Company (Click for Company Information)SymbolAnnouncement DateAbeona Therapeutics Inc Company WebsiteABEO7/1/2022Alphabet Inc Company WebsiteGOOGL2/1/2022Avalo Therapeutics Inc Company WebsiteAVTX7/7/2022Brickell Biotech Inc Company WebsiteBBI7/1/20229 more rows
Should I buy Apple stock 2021?
Apple Valuation also appears reasonable, relative to historical levels. The stock trades at a forward P/E of roughly 23x currently, down from around 31x in 2021 and 38x in 2020. This could make the stock a reasonable pick in the current market.
Is AAPL a good buy now?
Tech giant Apple (AAPL -0.20%) has proven resilient, holding up better than the Nasdaq Composite over the past year. However, even Apple stock has slipped over the past six months, down more than 20% since the beginning of 2022. Apple is an obvious winner and one of the largest companies in the world today.
Are stock splits good?
Stock splits are generally a sign that a company is doing well, meaning it could be a good investment. Additionally, because the per-share price is lower, they're more affordable and you can potentially buy more shares.
Who owns the most Apple stock?
The Vanguard Group, Inc. is currently the company's largest shareholder with 7.7% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 6.2% of common stock, and Berkshire Hathaway Inc. holds about 5.4% of the company stock.
What is the purpose of splitting stock?
Companies typically engage in a stock split so that investors can more easily buy and sell shares, otherwise known as increasing the company's liquidity. Stock splits divide a company's shares into more shares, which in turn lowers a share's price and increases the number of shares available.
When did the iPhone 5 stock increase?
As always, markets tend to anticipate product releases and reflect that in the stock price. Between July 2 and September 19, the stock price increased 18 percent.
Why did German automakers meet in secret groups?
As environmental issues really came of age in the 1990s, certain German automakers were meeting in secret groups to make sure their cars would continue to industriously contribute to greenhouse gas...
How much has Apple dropped in value?
Since then, Apple's stock has dropped in value by nearly $230 billion, with its valuation slipping to $424 billion in just four months. With the decline, Apple is a relative bargain, trading at 10 times earnings estimates, down from a PE of 15 when the stock was at its highest point.
How much is Exxon below Apple?
Exxon's valuation is now just $7 billion below Apple's. Analysts expect Apple's net income to decline to $10.1 billion in the current quarter, down from $11.6 billion a year earlier. That would mark Apple's first profit decline in 9 years.
Is Apple's conservative guidance real?
Nomura's analysts said Apple's conservative guidance was "now real rather than deliberately conservative.". Quite the paradigm shift for the company, which under former CEO Steve Jobs was known for setting expectations low and blowing past them each and every quarter.
Is Samsung locked in a race with Apple?
Samsung, which logged record-breaking sales of its latest Galaxy phone, is locked in a tight race with Apple to see who will dominate the U.S. smartphone market. CNNMoney (New York) First published January 24, 2013: 10:53 AM ET.
How much has Apple stock fallen in the past six months?
Apple 's stock price has fallen by 40% over the past six months, vaporizing almost $300 billion of market value. After an initial euphoric spike on Apple's calendar first quarter results, the stock has resumed its decline. There are many reasons for this collapse, and most of them are encapsulated in the following two charts.
Why did Apple cut the price of the iPhone 4?
Apple slashed the price of the iPhone 4 to try to sell more units in China. This, combined with discounts on the iPhone 5, caused Apple's average-selling price for the iPhone to decline. This iPhone margin degradation will likely accelerate when Apple finally releases a cheaper iPhone (expected late this year).
Will Apple's competitors catch up?
This trend is also not likely to change. Apple's competitors have basically caught up, and smartphones and tablets are becoming commoditized. As a result, to capture more market share, Apple will likely have to continue to be more aggressive on price.
Is Apple doing the right thing?
Apple is doing the right thing by reducing prices and producing more affordable products-- this is the smart long-term play. But investors do not like compressing margins. And the combination of compressing margins plus slow or no revenue growth (or, worse, shrinkage) is particularly unappealing.
What happened
Shares of Apple ( NASDAQ:AAPL) lost 11.7% last month, according to data provided by S&P Global Market Intelligence. For perspective, the S&P 500 index fell 9.3% in value last month.
So what
The iPhone maker reported a solid quarter in September, with revenue up 20% year over year and earnings per share up 41% year over year. However, Apple issued lower-than-expected guidance for the fiscal first quarter (which ended in December), sending shares tumbling. That negative sentiment carried over to the month of December.
Now what
On the bright side, the sharp decline in the stock price has brought the valuation down to a cheap level. Apple is still one of the most valuable brands in the world, which could make the stock worth considering right now.
