Photo: Smashing Lists
A major milestone has been hit on Apple’s decline.From Bloomberg:
*APPLE SHARES BELOW $500 IN PREMARKET, FIRST TIME SINCE FEBRUARY
The stock closed Friday at $509, after tumbling over 3% during the day.
Over the weekend, there were several developments, including a negative call from Citi, a bullish characterization of iPhone sales from Morgan Stanley, and an announcement that 2 million iPhone 5s were sold in China.
The stock had been falling in European trading already.
Clearly there’s been a major sentiment shift on this stock.
Trader Mark Dow had some great thoughts about Apple in his latest post assessing the state of the market:
While I’m here, let me make a quick, behavioural point on AAPL. AAPL has been THE story stock in the market over the past few years. It has been our collective obsession. It has sucked all the oxygen out of every financial chat room and could do no wrong. I can’t speak to the fundamentals, which may or may not have changed, but I do know this: once the fever breaks on a story that is so beloved, sentiment usually doesn’t stop deteriorating until the pendulum has overshot to the other side. And I get no sense we are near that point yet. I still see virtually all knife-catchers and no momentum shortsellers, and until this changes, it is probably not safe to buy the fruit.
Oh, and by the way, if the stock continues to go down, even if there aren’t good reasons for it, convincing-sounding reasons will be found. In the near-to-medium term story follows price more than price follows story more often than we are inclined to think.
Simple technical analysis suggests AAPL could go back to the area it broke out from in January, when the AAPL fever really took hold. That would correspond to price of about 425.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.