Why Is Apple So Uninspiring for Investors?
For one, Apple simply isn’t inspiring people to take an interest in investing in its stock. Research by Bankrate.com found that 76 percent of Americans were not moved to buy shares by the astronomical rise in Apple’s stock price last year. Even low interest rates haven’t changing attitudes.
While to some observers it seemed likely that Apple’s soaring stock would draw the interest of investors, it makes even more sense that seeing Apple plummet would make people shy away from it. And based on the survey results, it seems a lot of people were turned away by the dive.
A 44 percent drop in share value is a massive decline, and if anyone had been tempted to jump on the Apple rally bandwagon when the shares went up over $700, it’s likely that they quickly regreted the decision and will avoid the risky stock market in the future. However, people who aren’t new to investing also seemed turned off…
Historically, 30.5 percent of investors have been bearish on Apple stock, but right now 48.2 percent hold the bearish sentiment that Apple’s stock will fall over the next six months. So, even though this number is down 6.3 percent from the last analysis, it is still 17.7 percent higher than the historical average.
The amount of Apple bulls rose 7.5 percent from the last analysis to 26.8 percent. But, even though the number of bulls rose and the number of bears dropped, bears are still more prominent than bulls at this time. This is a flip from the way it was in the past, as the historical average for Apple bulls stands at 39 percent.
Despite all the negativity and lack of interest in the stock market, Apple managed to remain one of the most popular stocks. According to SigFig, Apple’s stock was the most widely held among its users, and was held by about 16 percent of all individual investors — just 11 percent of investors closed out their positions, bringing that figure down from 17 percent of all individual investors last autumn. TD Ameritrade senior vice-president Steve Quirk stated that “Apple remains one of our most popularly traded instruments.” So, even with the negativity and uninspiring stock performance, Apple has remained a common pick for investors.