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  • Apple Stock Falls, Sending the Stock into Bear Territory for the First Time in Years


    Apple shares end up falling nearly 6% during trading on Friday, sending the stock into bear territory for the first time in years as investors fret over the impact of China’s apparent economic slowdown. The Cupertino California company ended up closing at $105.76, which is off more than 20% from its 52-week high of $134.54. The large decline is considered by many investors as a benchmark for “bear” status.

    The slump has wiped roughly $160 billion off of Apple’s market capitalization and the reasoning behind the selloff isn’t immediately clear, though some of the news may be attributed to bad news from China.

    Kevin Landis, the CIO of FirstHand Capital Management, told CNBC the following regarding the matter:

    China selling off, or China hitting an air pocket - that's a real thing. Ask anyone who's ever been there, there is this sort of recklessness that really is sobering, and you figure, they're going to drive into a ditch periodically. It looks like that's what's happening again right now.

    Apple has a lot of exposure there, and they've pinned a lot of their growth to that market and they're going to have to pull those expectations down a bit.
    For those of you who didn’t know, China has arguably become the second most important market for Apple after the US as it is responsible for tens of millions of iPhone sales in a given quarter. Furthermore, it is also the country in which Apple is making the most significant investments. Current plans are calling for Apple to open more than 30 retail stores in China by the end of next year. Any economic downturn is likely to disrupt the still-emerging middle class that Apple’s Chinese growth depends on.

    We’ll have to wait and see where Apple goes by waiting patiently.

    Source: CNBC, MSN Money via AppleInsider
    This article was originally published in forum thread: Apple Stock Falls, Sending the Stock into Bear Territory for the First Time in Years started by Akshay Masand View original post
    Comments 4 Comments
    1. Carvensno's Avatar
      Carvensno -
      Sounds like China is having their reality check as the U.S. did in 2008. The market is resetting itself to a truer value, rather than a false inflation value.

      You really need to change that title also. You make it sound as if Apple is the only company taking a hit in the stock market.

      Title should read like "Total market takes a hit causing Apple stock to take a major hit in years". Just saying! Lol
    1. bigboyz's Avatar
      bigboyz -
      ^^ What he said.
    1. SirZyrion's Avatar
      SirZyrion -
      Oh sweet! Apple Stock is on sale!!! I'm pretty sure it'll be back up by December.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by Carvensno View Post
      Sounds like China is having their reality check as the U.S. did in 2008. The market is resetting itself to a truer value, rather than a false inflation value.

      You really need to change that title also. You make it sound as if Apple is the only company taking a hit in the stock market.

      Title should read like "Total market takes a hit causing Apple stock to take a major hit in years". Just saying! Lol
      But, but... then they wouldn't get all those clicks!