Top Nav

Apple (AAPL) Shares Amid Steepest Decline Since May

So much for the iPhone effect.

Apple (NASDAQ: AAPL) shares fell for a third straight day today, dipping below $670 for the first time in two weeks. The stock has now fallen 4.6% this week – the steepest decline for Apple shares since mid-May.  

So what happened? Wasn’t the September 12 iPhone 5 unveiling supposed to give the stock the usual 9% to 13% boost it traditionally receives after iPhone/iPad announcements.

Well, Apple shares did get a boost. In less than a week, the iPhone announcement boosted the stock from $660 a share over $700 a share for the first time ever. Then the phone hit shelves and sales were less than most analysts were expecting.

Hence the decline since September 21 – the day the iPhone 5 made its debut.

I doubt this decline is any real cause for concern if you’re an Apple investor. After all, this three-day drop-off has only knocked Apple shares back to where they were before the iPhone 5 unveiling.

Furthermore, the last time the stock got knocked down like this, it immediately rebounded. After falling from $570 a share to $530 a share in mid-May, it took only three trading sessions from May 21-23 for Apple shares to rise back above $570.

With a mini iPad supposedly set to debut next month, another quick rebound seems likely.

If there’s anything we’ve learned this year, it’s that Apple rarely stays down for long. 

Income and Prosperity Offer

Income & Prosperity is designed to help you seek out the safest income opportunities and discover an entire world of dividend investments. This free newsletter has a laser-like focus on one issue and one issue only: how can investors near or in retirement generate more income. Each day, you'll receive our best investment idea - skewed towards safe income - but also including lesser known opportunities to grow your wealth while keeping it out of harm's way.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.