What is going on with Apple? In September they hit a record high of $705 a share, but is now closing in the low end of the $500s- definitely in bear territory.
They are down roughly 25%- something that few could think possible, especially in such a short period of time. Apple’s market capitalization is now below $500 billion for the first time since May.
DoubleLine Capital portfolio manager Jeffrey Gundlach has a view on the subject:
“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. People over believed in Apple.”
USA Today’s Matt Krantz lists a few reasons for the decline:
“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.”
Paul Hudson | Elite.