After hitting an all-time high of $702.19 back in September, Apple’s share prices have taken a spectacular tumble barely seven months later. Apple’s stock closed at $392.05 on Saturday, a spectacular 44.17% drop from its historical high and the lowest since December 2011 and reducing the company value by a whopping $20 billion.
Amid reports that the company was one of the worst performers in Q1 this year in the S&P 500 as well as speculation of weaker demand for its mobile devices, investors flocked to dispose the stock. The so-called momentum riders who hold the stock for the short term were also quick to sell off their holdings.
In addition, the lack of new product launches, in tandem with the upcoming Galaxy S4 smartphone from Samsung – widely touted as the biggest challenger to Apple’s iPhone 5 – was also cited as one of the reasons behind the company’s plunge in the stock market.
The company is due to release its financial results next week, which may be the catalyst for a recovery to Apple’s share prices…or yet another plunge for a company that was once touted to be the most profitable in the world.
(Source: Computer World)