What’s Up With Apple? Stock Down Again
Earlier this week, like many of the stocks in the market, Apple (AAPL) stock rose nearly %3 on the news of the fiscal cliff issue resolution by the Congress, but the happiness among the shareholders of this company was short-lived as the stock fell %1 on Thursday and another %2 on Friday.
So far we have heard three popular theories about why market doesn’t favor stock in the recent months:
1) The company messed up the Apple Maps and as a result of that, we are going to see negative effect on the stock in the near future.
2) The company is not coming up with a truly innovative product (something like the rumored iTV) and therefore the profitability trend is not going to be sustainable with releasing newer models of iPhone and iPad.
3) For tax-reason purposes, the shareholders were dumping the stock in the market (this is not valid anymore as after the fiscal cliff resolution, the stock was supposed to bounce back and hold up…which didn’t).
Whatever the reason is, the rival Google (GOOG) is doing pretty well at north of $730…there is no question that both companies have great line of products and capable management, so what is causing this is still a mystery.