Apple’s Stock is Officially Negative for the Year

By Chris Gayomali | April 18, 2011 | +

In somewhat shocking news, Fortune is reporting that Apple’s stock is down 2.2% this morning, sending the technology leader into negative territory for the year.

The timing of this is particularly strange because 1) the Dow is still up 5% for the year, and 2) AAPL was poised to announce record earnings just a few days ago. What makes this picture even more puzzling is that that interest in Apple products seems as high as its ever been, and though the company is being hit with a smattering of class action lawsuits, there doesn’t appear to be any reputation-damaging PR news that fits the bill.

So, what gives?

Jay Yarow over at Business Insider has a few interesting theories – which include the diminishing role of Steve Jobs, the possible delay of the iPhone 5, or even Apple’s inability to meet iPad 2 demands — that could be confusing short-term investors.

But still. What do you guys think?

Related Topics: aapl, dow, drops, negative for the year, stock, Apple, Business, News

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pks29733steel

I think it’s because the public is realizing that the ‘I-Pod’ is a overpriced MP3 player (you can find alot better players for less), The ‘I-Pad’ is a underpowered ‘computer’ – I compare it more as a very overpriced ‘e-reader’, with 16 or 32gbs (I had a Personal Digital Assistant with more memory than that) for $300/$500 bucks! People are thinking, wait I can buy a full laptop for less with ‘wi-fi’ and send less money to China!!
ipisking

It is time to buy some stock…. @ pks29733steel What ever!!
Blakniss

I know nothing about the stock market, but I think the delay in iPad2 deliveries and dearth of available units is responsible.

Lot’s of folks, including me are still waiting to receive their deliveries or even have them at least shipped. Many who haven’t ordered online go into stores to blank stares when they ask for the device.

That’ll put a damper on the brand, but I reckon it will rebound once folks get their orders and stores being to sell units liberally.

Perhaps the perception around the relationship between the Japan tsunami disaster and supply is also affecting the value.
http://gum0nshoe.wordpress.com gumOnShoe

From a consumer stand point, I know plenty of people that are happy with Apple, but it seems like 1 out of 3 always realize they’ve bought something that wasn’t as good as they were hoping it would be. That dissapointment spreads eventually.

Consider finding out your laptop’s cd drive died and Apple won’t replace it unless you can fork over $300. And you know you could get a CD drive (At the time this happened) for $100 easily if you hadn’t gone with apple. And that a year later your computer was busted and wouldn’t start up anymore, just as the warranty ran out.

Apple devices are built to break and be pretty. And because of that, and the high cost overhead people eventually get tired of the products. I’ve seen plenty of people buy in and then opt out because of their experience with one product.

Maybe people on wall street are realizing Apple inspires these feelings and don’t have as much confidence.

The second thing you need to know is that those profits are all from I-tunes more than anything else. I-tunes is one of the best media stores out there. Perhaps investors know there’s something else coming out in this market? If apple lost its foot in the music industry their profits would tumble.
RichardSRussell

People on Wall Street are guessing just as much as the people who comment on stories like this.