Apple shares took an inexplicable beating from investors on Monday morning, leading to the stock’s single biggest fall since January 28th, 2014. And no one really know why.
An unusual spike in trading volume this morning sent the price of AAPL shares falling as much as 6.4 percent to $111.27 in early trading this morning, leading to a loss of more than $40 billion in market value in just a few minutes.
AAPL shares have been extremely undervalued for years, according to CEO Tim Cook, but it looks like Wall Street is starting to warm on Apple as the share price crested above $600 this afternoon for the first time since 2012.
After hitting an all-time high of $702.10 in September 2012, Apple’s stock has failed to regain its old luster despite record iPhone sales and earnings. Tim Cook announced last month that the stock would be split 7-to-1 in June, sending shares prices on a steady climb since hitting $524 per share the day after the announcement.
It’s looking like it might be a dreary quarter for Apple. Not only has iPhone growth pretty much leveled off, but most Wall Street analysts believe that when Apple announces its quarterly numbers, iPad sales will have actually declined year over year. Is Wall Street wrong?
Tim Cook has acknowledged that Apple has bought back $14 billion of its own shares over the past two weeks — reacting to an 8 percent decline in shares following the recent financial quarter results.
In an interview with the Wall Street Journal, Cook admitted that he was “surprised” by Wall Street’s reaction to Apple’s last quarter, in which the company broke records by selling 77 million iOS devices over the holiday season.
Apple’s recent share repurchase is the largest of its kind for a company of Apple’s size over a similar timespan. During the past 12 months, Apple has bought back $40 billion of its own shares — part of a plan to repurchase a total of $60 billion. In the past two weeks Cook says that Apple bought $12 billion of its shares through an “accelerated” repurchase program, and a further $2 billion on the open market. Apple plans to disclose updates to its buyback program either next month or in April.
Apple stock closed at a new 2013 high on Tuesday — rising 2.7 percent (or $15) over the course of the day to finish at $566.32.
For those keeping score, that’s the best close Apple’s stock has had since December 4, 2012, and means that the company is up by 6 percent so far this year — although still down on the $700 all time high which accompanied the iPhone 5.
Google stock has risen 13% today, surpassing $1,000 for the first time ever. It comes a day after the search giant announced its earnings for last quarter, which beat Wall Street expectations thanks to a surge in mobile and video advertising that helped increase quarterly revenue by 23%.
Apple announced today that its financial earnings call with investors for Q4 2013 will be held on October 28th at 2PM PT.
AAPL shares have been slowly recovering from a recent slump after hitting a high of over $700 per share in 2012. The recent announcement that iPhone 5s and iPhone 5c sales shattered past iPhone sales records with 9 million units sold should portend good things for Apple’s earnings and the share price, but Wall Street is always pretty fickle with AAPL, so we’ll have to wait and see if the good news will be enough to get more of Wall Street on board.
Like its previous earnings calls, Apple is allowing the press and its shareholders to listen in to a live audio webcast, which is available via its website and can be accessed on iOS devices. Cult of Mac will be on hand to liveblog the results as they come in, along with any commentary from Tim and the gang.