^ You must not have traded AAPL back in 2012/2013. Don't even think about reasons for why it's selling off and how it doesn't make sense, it just does.
It's actually a beautiful thing to see a stock adhere so strongly to a particular trend. Because when it rallies, it rallies for a long time. And when it enters that dreaded downtrend, it will sell off like no other consistently.
Apple is dropping on future expectations. Analysts are cutting projected earnings in the future and price is reflecting lack of anticipated growth. I'm not in this one but will be watching it for further drop. It's not in the value category yet. Also, I don't expect that all of a sudden the market will think it made a mistake and trend it back up to previous highs. It may go back up but it will be a longer to go back up then it did to come down.
1 billion dollar investments in bigger companies also helps them avoid having to do massive acquisitions that take time to integrate.
That's always the problem with a falling knife when we can't see where it is falling. You have to grasp it around the blade while it is falling and you might get cut. I have a thread about this in the TIFU section, not usually a good idea. In Apple's case, yes they are a solid company on the balance sheet and cash flow etc but with the growth slowing your gamble here is how long it will take to recover your money and get you into some profits. The longer you have to hold it the more profit you need to make up for the time you tied up the money. I say this as I sit on a couple of fundamentally sound stocks that will eventually go up and get me my money back but I presently have that money tied up and can't maneuver into some of the better intermediate choices. Not sure how much you have but say someone had 100 shares at 105 they would have 10,500 tied up in that one position. Now say it falls to 85 and we double down for 8500. Now we have 19,000 tied up on 200 shares or 95 per share cost basis. First there could be more downside risk but not knowing the future, but based on future earnings/revenue projections it could take awhile to move back up past 95 to recover the money and may find a temporary ceiling around 100 until confidence returns. So if one is willing to sit on 19000 and wait for that, knowing it is a risk then it should work out just fine on long term.
3 year weekly chart with 30 week MA. Bulls are winning today but the long term chart shows the bears with a pretty good grip. Short term support was broken yesterday clearing the way for the bears to take it to around 83 if the bulls decide to take a breather. If bears can take it below 83, next stop would be upper 70's making it an enticing meal for the bulls at that point. Not saying it will get there, but have to put the odds in the bear's favor until the bulls show on the chart that they are back in control
Tim Cook is scrambling to find worthy acquisitions imo. Personally see $80 soon, until he can find growth somewhere else.
Like where? So far his every attempt was somewhat unimpressive at best. His latest China business looks more like a mockery than a growth opportunity if you ask me.
Warren Buffett disclosed in a regulatory filing Monday that Berkshire Hathaway (BRKB) bought 9.8 million shares of Apple, valued at about $1.07 billion at the end of the quarter. http://www.investors.com/news/warre...-up-on-att/?ven=YahooCP&src=AURLLED&ven=yahoo
Don't forget why it is a MOVING avg, the 20dma has dropped ~0.90cts/day over last 5 days & will continue to decline at that rate as it replaces older and much higher data, prices AND moving avgs can correct thru TIME as well as price.
Point taken. It will start looking better simply due to MA correcting itself to after-ER drop. Guess it might positively affect the stock.
Cook's meeting with Indian Prime minister this weekend. Fighting for that market share I reckon. How likely is Apple to become big in India where most of the population can't even afford their products?
