As we’ve observed several hundred times in the past, Apple is always quite keen to talk about how well things are going at its keynotes, be it iPhones, iPods, MacBooks, OSX, App Store downloads… Essentially, it’s all sunshine and rainbows at Apple. Or is it?
See, despite all that, Apple’s stock continues to plummet, hitting its lowest point since February this past Thursday. What the…?
Apple’s shares dropped $11.26 to $525.62, marking a 25% drop from a record high ($702.10) set in mid-September – just before the iPhone 5 launch.
How come? In the words of Homer J: “Don’t ask me how the economy works.” Fortunately Jeffrey Gundlach, portfolio manager at DoubleLine Capital, is on hand to explain.
"Investors had believed Apple would take over the world,” begins Jeff. “Management was flawless, its products were in infinite demand and competition couldn't make a dent. People overbelieved in Apple."
Various analysts further explain that Apple’s stock plunge is as a result of investment taxation concerns, profit compression (as costs increase and competition intensifies), a "softening macroeconomy" (less discretionary income for gadgets), and the loss of Steve Jobs.
Many are predicting that the Apple bubble is about to burst. What goes up…
via: USA Today