Click to Skip Ad
Closing in...
  1. Amazon Gift Card Promotion
    14:41 Deals

    Amazon’s giving away $15 credits, but this is your last chance to get one

  2. Control Garage Door With iPhone
    08:10 Deals

    Unreal deal gets you Amazon’s hottest smart home gadget for $23 – plus a $40 c…

  3. Self-Emptying Robot Vacuum
    16:11 Deals

    Amazon coupon slashes our favorite self-emptying robot vacuum to its lowest price ever

  4. Amazon Deals
    07:58 Deals

    10 deals you don’t want to miss on Saturday: $5 Alexa smart plugs, $110 electric sta…

  5. Amazon Echo Auto Price
    11:41 Deals

    Last chance to add hands-free Alexa to your car for $19.99 with this Amazon deal




‘People overbelieved in Apple’

Zach Epstein
November 16th, 2012 at 9:40 AM
Apple Stock Analysis

Wall Street is still crushing Apple (AAPL). The stock is now deep in bear territory, down roughly 25% from the record high it hit just ahead of Apple’s record-breaking iPhone 5 launch in late September. Apple shares closed down more than 2% at $525.62 on Thursday, pushing Apple’s market capitalization below $500 billion for the first time since May. The company just posted a record September quarter, it’s guiding for a record holiday quarter and some analysts expect Apple’s performance to keep soaring. So what’s going on? According to one market watcher, “people overbelieved in Apple.”

“Investors had believed Apple would take over the world, management was flawless, its products were in infinite demand and competition couldn’t make a dent,” DoubleLine Capital portfolio manager  Jeffrey Gundlach told USA Today. “People overbelieved in Apple.” DoubleLine is currently short Apple shares.

USA Today’s Matt Krantz lists a few key items among the reasons for the steep decline in Apple’s stock: “Worry about changes coming with investment taxation,” “realization that losing its visionary founder isn’t something to be ignored,” and “profit compression” that is likely to hit as costs rise and competition increases.

Apple’s stock now sits at its lowest level since February and while Apple bulls are looking for a rebound to start any day now, many aren’t convinced the current dive has bottomed out.

Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.




Popular News