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Apple can't catch a break: Stock down again

February 19, 2013: 2:03 PM ET

These are dark days for Apple investors.

Apple (AAPL) and the broader stock market are once again at odds. When the S&P 500 (SPX) and Dow Jones Industrial Average (INDU) have ticked up, Apple tends to move lower. As many traders have pointed out, Apple has been trading inversely to the market and its rival Google (GOOG), the maker of the Android operating system.

On Tuesday, Apple's stock dipped roughly 0.4%, while the S&P and Dow moved closer to their 2007 peaks. Google jumped 1%, hitting its all-time high.

Sadly for Apple's shareholders, it's been on this losing side of the equation a lot lately. Apple is down 14% in 2013, while Google is up that much this year.

Apple bears were quick to write the iPhone maker's obituary.

The sun is rising on $GOOG-land and setting on $AAPL-nation. Google experiments, has fun, is bold. Apple is secretive; tense; #fullofhubris

Our boss pointed out a story by CNNMoney's David Goldman that discussed Apple's search for its next hit product.

Larger iPhone, smaller iPad, thinner Mac, taller iPod -- that's innovation at Apple these days. $AAPL

Others noted that even if Apple isn't dead, others have caught up.

Android phone rollouts are now events like iPhone. The playing field has been evened. $AAPL $GOOG $$

Traders expect Apple to continue to lose its innovative edge and move further downstream to target consumers looking for the lowest prices.

Apple inside Walmart. They are doing what every successful high-end brand has done to sustain growth - trade down to expand user base. $AAPL

$MS says $AAPL China market share could increase from 10% to 30% by launching lower cost iPhone -

But even if the iPad maker gains new customers in China, will Apple be sacrificing profits to grow its sales? That's what investors seem to be betting as they run away from Apple's stock.

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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