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Apple stock slide: Much ado about Wall Street
While the Dow has been inching towards record highs, Apple's stock has taken a dive.
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Apple's stock has taken a significant dive recently. Though the CEO of the company has changed from Steve Jobs to Tim Cook and there are new concerns over falling demand, Allan Sloan, senior editor-at-large at Fortune Magazine, says the company's stock performance has little to do with what's going on inside the company.
"This was a classic momentum play, it ran up, it ran down, with no real change," says Sloan.
To hear more about Apple and its future prospects, click on the audio player above.
Apart from what AAPL should do with its cash,and its relatively cheap valuation, my own "technical" overview of the situation (seen here: https://precisionstockpicks.com/blog/aapl-chart-analysis/) is this: AAPL has suffered since last Fall while the overall major indices have rocketed. Huge net worth has been compromised and been put at risk by AAPL's stock performance (believe it or not), which has caused a steady exodus of money out of AAPL into the "safety" of the S&P (sectors). My work suggests strongly that the AAPL-SPX relationship is nearing an inflection point, when money will flow into the relative "safety" of AAPL at the expense of the major indices.
-Mike Paulenoff
