Apple shares are hitting their lowest in 2015 written
At the start of the year Apple looked to have a great year but later developments have thrown such hopes into a cloud of despair. Things are looking ugly and investors will make do with the gains they pocketed so far as the stock market news are not promising. It all began with a 1.5% drop in the gadget maker’s shares and that completely erased any gains which had been made up to the third quarter of 2015. It even appears that though the Feds latest interest rate intervention gave Apple’s share a boost of 0.8 cents to rise to 111.3, the great damage had already been down and the only way is going down.
What is causing the Apple’s share turbulence?
What throws Apple’s year in to tatters after a rather good years start? The problem lies with gadget sales. In the current quarter, apples gadget sales are hitting bottom low and there are no signs of things changing. Credible predictions have shown that the sales’ decline is expected to continue into the next quarter. So as much it is hard to take it the hard truth, Apple will have to embrace the down spiral of their shares. It would only be by reviving the sales that the slump would be reversed.
The trajectory of Apple’s share decline
There are a number of pointers to the breathtaking drop of Apple’s shares and this can be explained better by looking to the finer details of the falling curves;
· A generally lagging market: 2015 is not a great year for the stock market. There are those who are reaping a good chunk but they are only a few. The rest are performing averagely and would look forward to a more promising year. S&P 500 shares are just 0.8 up and this is a dismal performance. But Apple is performing way below S&P 500. If we were to compare the two for the past one month, S&P shares went up by 1.1% while Apple on the other side registered a 2.6% drop in the same period.
· It may not get below the $110 mark: stock bulls are looking for apple share to get below the $110 mark as a point when the share will get some support. It has been October, November and December with no signs that things will get below that. This sort of crush in Apple’s shares throws the stock into the woods and those who bought it when it had averaged on $121 for 200 day are now losing money.
· Flirting with drops while other giant-tech caps are enjoying high returns: from annual drop of 1.2% to 0.8% is the improvement Apple can count so far. But the irony is with the huge fortune that other high ranking technology brands are making. Microsoft, Netflix, Google, Amazon and Facebook are posting greater growth in their shares. Apple is usually in the same playground with the brands but this year it has fallen from top to its lowest ever.
Apple is just having a bad year which would only be revived by scaling up sales. The market may get better but if the sales are still that low then 2016 may be yet another grim year to the gadget maker.
What is causing the Apple’s share turbulence?
What throws Apple’s year in to tatters after a rather good years start? The problem lies with gadget sales. In the current quarter, apples gadget sales are hitting bottom low and there are no signs of things changing. Credible predictions have shown that the sales’ decline is expected to continue into the next quarter. So as much it is hard to take it the hard truth, Apple will have to embrace the down spiral of their shares. It would only be by reviving the sales that the slump would be reversed.
The trajectory of Apple’s share decline
There are a number of pointers to the breathtaking drop of Apple’s shares and this can be explained better by looking to the finer details of the falling curves;
· A generally lagging market: 2015 is not a great year for the stock market. There are those who are reaping a good chunk but they are only a few. The rest are performing averagely and would look forward to a more promising year. S&P 500 shares are just 0.8 up and this is a dismal performance. But Apple is performing way below S&P 500. If we were to compare the two for the past one month, S&P shares went up by 1.1% while Apple on the other side registered a 2.6% drop in the same period.
· It may not get below the $110 mark: stock bulls are looking for apple share to get below the $110 mark as a point when the share will get some support. It has been October, November and December with no signs that things will get below that. This sort of crush in Apple’s shares throws the stock into the woods and those who bought it when it had averaged on $121 for 200 day are now losing money.
· Flirting with drops while other giant-tech caps are enjoying high returns: from annual drop of 1.2% to 0.8% is the improvement Apple can count so far. But the irony is with the huge fortune that other high ranking technology brands are making. Microsoft, Netflix, Google, Amazon and Facebook are posting greater growth in their shares. Apple is usually in the same playground with the brands but this year it has fallen from top to its lowest ever.
Apple is just having a bad year which would only be revived by scaling up sales. The market may get better but if the sales are still that low then 2016 may be yet another grim year to the gadget maker.