Bursting the bubble: Apple stock down 22% in less than a month
Posted by Dr. Macenstein
Apple’s year-long stellar stock performance came to a screeching halt today, with Apple’s shares down over 6% by mid afternoon, and down over 22% from their all time highs just 1 month ago.
Many analysts have been warning that the stock has become over-valued in recent months, and perhaps profit takers are finally starting to listen. Robert Bacarella, manager of the Monetta Select Technology Fund, says the decline is due more to the odds against Apple sustaining its amazing growth this year than any actual bad news from the company. “…[investors] feel the stock looks tired and want to get some payoff from it. If there was any real bad news, [the stock] would have broken down before now.”
Just 3 weeks ago Piper Jaffray analyst Gene Munster predicted an Apple stock split this month, and set a new target of $103 for the stock. Apple shares were trading at $67.78 by late this afternoon.
