Apple’s drop below $100 costs investors $26.1 billion
Following news of the latest security attack of Apple’s iCloud service over the weekend and news of a smartphone partnership between Samsung and Facebook (FB), Apple’s AAPL shares were under major pressure.
Shares of Apple Wednesday fell $4.36, or 4.2%, to $98.94. That’s the biggest dollar decline by Apple since it lost $6.19, or 8%, to $71.17 on a split-adjusted basis on Jan. 28, 2014, according to data from Yahoo Finance. Since Apple is the most valuable U.S. company, with a market value of more than $618 billion, Wednesday’s decline cost investors $26.1 billion.
Apple’s decline even pushed the entire broad Standard & Poor’s 500 into the red. The decline in Apple stock shaved 2.97 points off the S&P 500. Had Apple been unchanged, the S&P 500 would have been up 1.41 points. Instead, the S&P 500 fell 1.56 points to 2000.72.
“Stocks can trade with increased volatility around events and there is a big event expected for next Tuesday,” says Walter Piecyk, analyst at BTIG.
“We think Apple has little room for error in delivering on a spectacular iPhone 6 launch,” says Brian Colello, analyst at Morningstar. “The Samsung Galaxy Note Edge announced today appears to be an interesting device with its innovative side screen and may provide Apple with stiffer competition in the very large screen (5.5″) portion of the smartphone market than what many have anticipated.”
“Concerns over iCloud have hit at the worst possible time for Apple – a highly publicized flow that’s making the news a week before a major launch,” Colello says.
The sudden decline in the shares interrupts what had been a powerful rally in 2014 as investors anticipate new devices including an upgraded phone and perhaps a watch-like gadget. Shares of Apple are up 23% this year and set an all-time, closing split-adjusted high of $103.30 on Tuesday.
Source: Usatoday
