Apple Stock Hammered (AAPL)...Why?
Apple stock dipped early in the day on a false "citizen journalist" report that Steve Jobs had had a heart attack. After Apple denied the report, the stock bounced right back.
In the last hour of trading, however, Apple's stock has tanked again, and at one point was down more than 4%, to $95 and change. Most other tech stocks, including RIMM, remained up at that point. The stock recovered slightly at the end of the day and closed down 3%.
Anyone heard anything?
My guess: FUD in general and the ongoing 'what's wrong with Steve' saga. Perhaps just not wanting to hold the name over the weekend, being subject to all kinds of potential 'news' around the name (real or imagined).
So to speak.
MGZ
http://tinyurl.com/3jqrfv
nothing very surprising with apple today, other than the fake story.
Short selling ban on financial force Hedge fund to turn on other hot stock that could be very volatile.
So they killed those stock by doing a lot of shorts true multiple block of trade... but it is working very well since the uptick rule disappear in july 07.
Beside that, Analyst find the perfect moment to downgrade apple in order to allow institutional to enter at a very low price. Everybody (including those analyst) expect a product release from apple very soon, with this product realease... they will use the opportunity to REUPGRADE apple (with whatever comment that could justify this like : this new product will create a new momentum in sales etc)... this upgrade will help the stock get back to their normal value before earning that should outplay the market... and help the stock on his uptrend...
So now you know, all that is simple manipulation... to allow institutional to gain from the market.... and gain from solid stock... and allow also short sellers to work during the period short selling is ban on financial.
Very few people expect Apple to be this low given the product line that they have had and their growth. The problem is that as the stock goes lower so does confidence of investors and it drags the stock even lower. Imagine if Apple went down to $90.00, a lot more people would begin selling fearing the worse and the stock would go lower and again more selling and on and on we go in a downward spiral. There will be a bottom and a great recovery but no one will know when that will be... Irrationality and fear go hand in hand at this point in time in the stock market.
My question too. Most of the answer seem to give reassurance. I concur.
I invested in Apple because they have great products and a customer cult. This will continue regardless of any economic downturns or Nokia ripoffs.
Jax