Apple Stock
Great news from all around for Apple: analysts have raised their target share price to more than $50 above the current price and rate it a strong buy; Apple is on the eve of the release of their biggest-hit product ever, the iPhone 3G, which is raising massive interest around the world–in Spain and the UK there are already 300,000 pre-orders, two weeks before the actual release. Apple has increased its orders for production up to 15 million units from ten million units, and plans to hit it’s sales goal which observers once called fantastically optimistic but have now changed to saying Apple will probably sell even more. A new report says that Apple should make more profit from each new iPhone than they have ever made before. And the App Store promises to be just as much a hit, generating billions as a brand-new source of income for Apple. In other news, Apple sells its five billionth music track at the iTunes Store, and its line of personal computers continues to hit record sales marks (dominating the high-end market) and continues it’s skyrocketing trend in market share, while OS rival Microsoft wallows in mediocrity as its creator, Bill Gates, retires. Overall, every bit of news out there is highly positive for Apple.
The market’s reaction: Apple stock plummets $9.13, 5.15% of its total value.
Why? Frakking speculators.
Stocks are somewhat proportional to profit, which is effected by price of product. So if they drop product price to increase volume, then wall street might be concerned about profit. Also, the stock market dropped yesterday, so that pulled all stocks down.
Ykw: Apple dropped the price only cosmetically; the unit’s price to Apple is much higher than the subsidized price the carriers will offer, and it has been reported that Apple is paying less than ever for parts. Not to mention that Apple is about to dramatically increase their market size, and probably their market share as well. In short, Apple is set to make even more money, not less. Scads more money. And while the market dropped, it was probably more Apple leading the market than the market leading Apple; most stocks did not drop as much as Apple did.
Visit the link I posted: it’s a speculator reporting that he dumped half his Apple stock because his “system” told him to, and many others did the same. Stock prices, like fuel prices, have become slaves to a population of non-producing parasites who leach off the system and only make things worse for everyone else.