Apple Stoops To This New Low
There is still no indication of how bad things could get for Apple (NASDAQ:AAPL) before they start getting better. The selling pressure that has refused to leave the stock’s side over the last few months was still going strong on Friday, and it pushed the company to a new notable low.
In afternoon trading, Apple briefly touched a new 52-week low of $431.28, also the stock’s lowest point since January 24, 2012, when it closed at $420.50 in anticipation of the company’s fiscal first-quarter earnings report, according to CNN Money. That low point in 2012 was short-lived. With Apple reporting record sales of 37 million iPhones, the stock zoomed $37.50 higher in after-hours trading.
There were no signs of a surge back up on Friday, with the stock reportedly dipping as anticipation for the launch of rival Samsung’s (SSNLF.PK) Galaxy S4 smartphone continues to grow. The growing threat from the company’s many rivals has been putting pressure on Apple’s stock for months now.
Credit Suisse analyst Kulbinder Garcha mentioned the pressure from Samsung in a research note on Friday, saying a new Galaxy S4 could gain share in the high-end market. Garcha also cut his iPhone estimates for the full year after saying that the Apple smartphone may receive a refresh in mid-2013, which will cause a hesitancy effect on demand and cause the company to keep the supply chain lean.
Apple shares have dropped more than 20 percent over the past 52 weeks, while the S&P 500 index has gained 10.49 percent in the same period. The stock has fallen more than 38 percent since closing at a record high of $702.10 in September as of the close of trading on Thursday. Worries that sales of the company’s bestseller, the iPhone, are falling, as well as concerns about possibly dropping gross margins, have taken a toll.
There is an ongoing debate on Apple’s future prospects. Mark Mulholland, the portfolio manager of The Matthew 25 Fund, told CNBC this week that while the stock had lost momentum, it had significant upside left in it. “I always think everything comes down to three issues: It’s value, growth, momentum,” he said. “If you can get all three, it’s perfect. If you get two out of three, it’s pretty good.”
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