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iPhlop? Apple down 6% from all-time high

September 26, 2012: 1:09 PM ET

The iPhone 5 has a bigger screen. But Apple doesn't have a bigger stock price since the device went on sale.

Apple's iPhone 5 has well-documented glitches with the new map application. Investors have a navigation issue to contend with as well: They haven't been able to find a $700 stock price lately.

Shares of Apple (AAPL) fell more than 1% Wednesday, extending a week-long slide for the stock. Since Apple hit an all-time high of $705.07 on Friday, the day that the iPhone 5 went on sale, the stock has slid nearly 6% to the mid-$660 range. Of course, that's hardly a cause for alarm. Apple's stock is still up 64% year-t0-date.

The company remains the world's most valuable, with a cushy $200 billion lead over Exxon Mobil (XOM). And with 5 million iPhone 5s sold during its first weekend, odds are that Apple will report strong revenue and earnings for its latest quarter sometime next month.

Still, some traders on StockTwits were wondering if Apple's fantastic stock run is over now that consumers have shown they don't universally adore the new iPhone.

CDMCapital: Jim Chanos opted to get long $MSFT over $AAPL in his Bloomberg interview yesterday, said Apple's huge rise was perhaps overdone

Interesting. Chanos is obviously an investors whose worth paying attention to. And Microsoft (MSFT), despite its lack of coolness compared to Apple, could pleasantly surprise people with its upcoming Windows 8 operating system and Surface tablet. Plus, Microsoft is a slightly cheaper stock, trading at 10 times earnings estimates for fiscal 2013. Apple is valued at 12 times earnings forecasts for its next fiscal year.

It's also possible that investors are selling Apple to buy Google. Shares of Google (GOOG) hit a new all-time high this week and part of the optimism is due to the company's Android operating system, which competes with Apple's iOS.

SteelCahones: So the divergence between $AAPL and $GOOG share prices was $0, and now it's almost $100...wild couple of weeks.

Another StockTwits user suggested that Apple is simply pulling back because investors got ahead of themselves.

ankitm514: $AAPL is a solid company with a solid new product. However, -overhyped! Arguably unrealistic expectations from the street.

That could be the case. For what it's worth though, Apple rarely gives analysts pie-in-the-sky earnings and sales forecasts that it can't meet. Nonetheless, the fact that Apple is proving to be fallible after all with the iPhone 5 could mean that the current quarter won't be as good as the company thought it would be back in July.

But Apple bears seem to be in the minority.

moteltan: $AAPL lower on good (5m sold) news. Market lower on good data yesterday. They are writing it on the wall for us.

BlackBoxTrader: $AAPL after losing $40 + the probability of $AAPL going lower gets less and less likely

Good points. It's hard to justify Apple going a lot lower as long as the fundamentals still look attractive. Apple's stock isn't going to collapse unless sales and profits do.

One StockTwits user joked that maybe investors were too busy buying the new iPhone to be investing in stocks.

Shaq48_Trading: without the King $AAPL the market just not the same..I guess everyone in line instead of buying stocks 🙂 $SPY

Ha! Apple has gotten so large that it does skew the performance of the overall market. But it's not as drastic as you might think. My colleague Maureen Farrell recently looked at how Apple's stock rise has accounted for 2 percentage points of the S&P 500's increase this year.  So Apple is a big part of the market. But contrary to popular belief, it's not THE market.

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Paul R. La Monica
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Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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