On Steve Jobs ailing health, first I would just like to say, feel better Steve.
As to the stock, it shouldn’t be such a huge story.
This has happened a couple times before, and since then succession planning has been put in place to deal with Apple’s leadership, and the stock has bounced back before his arrival.
Needless to say, Apple is quite a bit stronger now than in 2008, and we are not in the midst of the 2008 financial meltdown.
If you have faith in the economic trends that Apple is associated with continuing, then buy on the dip, because the Jobs news is a blip.
It only becomes a problem if they replace him with a Nardelli, or a Bush. Notwithstanding a ne’er-do-well successor, Apple should be fine. Take a look at Apple versus Wireless Sales over the past 5 years:
Now even if you think Steve Jobs created this trend, which is valid, he doesn’t have to do anything to keep it going in that direction. Google + Motororola + Facebook + Verizon + AT&T all do it for him. The wireless sales growth is bound to continue, with or without Jobs at the helm. Check out Apple’s whole macro profile, to see which other economic levers push on this stock:
Written by Raj Udeshi for HiddenLevers.
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