Apple Shares Tumble, Falling More Than 6%
Apple shares recently took a tumble with a loss of over 6%, making this the largest stock drop in a single day over the past four years. Analysts and investors alike are blaming the sell-off and resulting stock price drop on many factors, including a recent forecast by an influential firm that Google’s Android operating system continues to gain ground. Another unconfirmed report continues to play a role as well, stating that at least one stock-clearing house has been raising margin requirements on trades in Apple stock.
According to a report at Reuters
, other factors include a potential hike in capital gains tax that begins next year if current financial wrangling in Washington fails, along with rumors that Nokia beat Apple in China by making a deal to sell Lumia phones via China Mobile, which is the country’s largest wireless provider.
For those of you who are thinking that a 6% loss isn’t too big, you might have to think again when you realize that the total value of current stock shed $35 billion in market value, while over 37 million shares changed hands, making Apple one of the day’s biggest percentage losers in the S&P 500. The Cupertino California company’s average daily volume over the past 50 days is only 21 million. Furthermore, the continued decline in Apple stock value as well as resulting analysis that Apple has lost its way is likely taking its toll on the CEO, Tim Cook.
Playing devil’s advocate for a second though, it makes sense that any company would have trouble sustaining growth similar to that of Apple for as long as Apple has. The company still seems to be up 33% over last year.