Recently brought to my attention was the fact that Apple's stock prices have dropped a fair margin in the past couple days despite the announcement of the iPad 2. Crazy, right? Wrong.
The way analysts are looking at things these days is that companies like Apple and Google HAVE to come back down to earth sometime soon, and a couple of big-money people are acting on those concerns by cashing out their stocks. With a lot of the share back up for grabs, the cost/share decreases drastically. Simple supply and demand scenario.
Another thing about the stock industry is that the best way to make money is to ride the steep up-waves, and get off before the stock price starts leveling out or drops. According to the Wall Street Journal, Apple's estimated growth of about 50% this year is going to drop off to only about a 10% increase next year. Has Apple hit the peak of their innovation?
As Apple's stocks have risen, it makes sense that those with big money will pull out sooner because they have already made a killing off of Apple's rise in the stock market. Why would they risk it? All in all I wouldn't be too worried about the drop in stock prices, because as long as Apple is ahead of the curve their products will still be in demand, and the stock prices will continue to rise. Remember, the big picture shows that their stock is still rising. The real question is: at what rate?
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