The shares of Apple
Inc.(NASDAQ:AAPL) witnessed a sharp fall after yesterday’s
big drop. However, the shares of the pioneers of iPhones even after falling
into a dig took a reverse gear and reflected an affirmative sign on
heavier-than-usual trading volume with it share prices rising to $547.62
indicating a high of 1.7%, well off session low of $518.63.
Yesterday’s
blackout was one of the darkest and the starkest since December 17th,
2008, which not only compelled the stock to push down by 6.4% but also wiped
off $39.4 billion worth of the company’s market capitalization. There are
several factors which piled together resulting in such a massacre. The company
had been witnessing tensions about the intimidating “death cross” parallel to
the concerns of losing the tablet market in the mist of tough competitions from
its rivals Microsoft Corp., Amazon Inc., Google Inc. and Samsung Electronic Co.
in addition to this the company has been low when the investors’ confidence in
the company is taken into consideration. These problems that the company has
been facing accumulated to see the mid-November lows. Tax-related selling ahead
of the fiscal cliff has also hindered the stock.
Looking at the
graph of the last decade shows a fairly mixed track record of the company in
the face of “death cross”. The indicator highlights pessimistic short and long
term implications on the stocks. However, according to Bespoke Investment Group,
the death cross hasn’t historically proven to be a clear-cut sell signal for
Apple. “The returns haven’t been as ‘deadly’ as one might expect.” Prior to
this, the company witnessed a death cross on September 23rd, 2008
when the stocks of the company toppled 289% in the following month and 32% over
the next three months.
Analysts
anticipate that the current black-out will fade in course of time and urges the
investors to stay with the company’s shares, providing an optimistic look at
the company’s shares. Availability is improving and Apple products remain the
‘gift of choice’ this holiday season, indicating the investors’ about the
long-term prospects of the company.
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