General Question

rawpixels's avatar

Apple stock is getting crushed! What to do?

Asked by rawpixels (2655points) September 29th, 2008

Wow, I’m depressed. Apple shares are down over $20 a share right now. Should I panic and sell it all, or will the shares recover in time? I could use some advice right now!

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19 Answers

robmandu's avatar

It’s tough to say anything with certainty re: the stock market in general or individual stocks in particular.

AAPL is, for some reason, consistently undervalued on the market… yet they always provide conservative guidance and exceed expectations. They have over a billion dollars on hand in cash… and if they do hit a bump, can easily ride it out.

If it were me, based on AAPL’s performance alone, then no, I would not sell the stock. I’d keep it. Matter of fact, I’d wait for this dip to bottom out, and then buy more.

If the overall market is going to recover at all, I’m betting that AAPL will be in the vanguard.

rawpixels's avatar


Thanks for the words of wisdom. I think I’ll ride it out. If I sold now, I think I’d kick myself in the future. I use Apple products (Mac and iPhone) and I haven’t lost my confidence in the company. So, I plan on holding and possibly buying more in the near future.

flameboi's avatar

buy, shares will bounce back to normal levels by the end of the year :)

tWrex's avatar

I wish I had the cash to buy a few shares of apple stock. Maybe I’ll try to convince the wife to let me do that and try to re-manage the money for this month.

rawpixels's avatar

Morgan Stanley dropped Apple’s price target from 175 to 115. This is nuts, as far as I’m concerned, but as others have stated, this could be the opportunity to buy more at a much lower price.

robmandu's avatar

Katie Huberty at Morgan Stanley has been named as the worst analyst on AAPL.

Snoopy's avatar

I agree w/ rob’s advice. Hold. Don’t sell. If anything buy more.

Another thing to consider….if you feel you are sensitive to market fluctuations, you might want to consider getting out of individual stocks and instead buy funds. That way no one stock hits you as hard.

robmandu's avatar

Oh yah, Apple’s fiscal year ends Tuesday. It is expected to easily beat its guidance numbers on the strength of record sales of iPhones and notebook computers.

cwilbur's avatar

Remember the way to make money in the stock market: buy low, sell high.

Apple stock is undervalued, and the company both has a lot of cash in the bank and is firing on all cylinders right now.

Do you want to make money?

BronxLens's avatar

Sell high -Buy low. That’s the way to make money in the stock market, correct?
Look at the history of their stock. With Steve-O still at the helm I (not you, I repeat “I”) would not only hold on to what I already have, I would go out and buy more of it. Think how many years in a row they’ve come out not only with killer applications and gadgets, but things that re-created how we use/think about everyday objects (everyday now – iPod, iPhone, iTunes, MacBook Air. You know that as we speak the Mac-skunk works are hard working at the next industry flipping & revolutionary can’t-live-without-it gizmo.

rawpixels's avatar

Your words have certainly made me feel a bit better. Today was a brutal day. I have lots of Apple stock and I’m dizzy from looking at how far it plunged today. But, you may be right…it could be a good time to buy some more.

BronxLens's avatar

We have a saying in Spanish “En rio revuelto, ganancia de pescadores”, which roughly translates as ‘When the river grows wild, to the fishermen goes the bounty’.

@RawPixels, Disclaimer: It’s easy for me to give this advise as 1) I don’t have any stock in Apple, and 2) I don’t follow the market, I follow my own goals. I adjust my portfolio holdings as I get closer to my end goal moving my investments to less riskier ones).

windex's avatar

yea…people are just being stupid and selling because they are panicking.

This happened around 95 also. If you have ANY money under your pillow, my advice is “buy buy buy” it’ll take a few year for everything to be A-OK, but everything WILL BE A-OK

I’m holding on whatever I have, Selling would probably be the worst thing you can do right now.

rawpixels's avatar

Well, I did not panic and decided to hold my shares. I’m confident in Apple. I just read that Goldman Sachs and Citigroup came out with a buy rating on AAPL, so there seems to be a conflict among the analysts. Anyway, I’m holding. :)

robmandu's avatar

More bullishness on AAPL: The Motley Fool says, “You’re Crazy to Be Selling Apple.”

windex's avatar

LOL, my recommendations on MOST STOCKS is BUY BUY BUY

wait a few years, then become a multimillionaire


robmandu's avatar

Just an update.

“The consensus among analysts before the earnings call was that Apple’s revenue for the quarter would be about $8.05 billion. Some traders looked at $7.9 billion and thought Apple had fallen short of the Street’s target by $150 million. The smart ones looked at $11.682 billion and realized they’d underestimated Apple’s earnings by nearly $3.8 billion. They’re probably the reason Apple’s share price jumped 12% in after hours trading.”

[ emphasis mine ]

fireside's avatar

That’s almost scarier in a way. What Oppenheimer told the analysts is that their earnings as always reported were below expectations, BUT this new method of reporting that we’ve never shared with you before shows that earnings were actually way up.

Based on that and the fancy new report, the share price jumped 12%.
Hopefully that was a solid report despite it’s limitations.

robmandu's avatar

Regarding the App Store, Seeking Alpha reports

There is an Apple (AAPL) story that I don’t want you to miss. It’s bigger than the Mac, it’s bigger than the iPod, and it’s bigger than the iPhone. Steve Jobs briefly mentioned it in the quarterly conference call and it deserves repeating, “We’ve never seen anything like this in our careers”.

Of course, I’m talking about the App Store. This store is causing a sea change in both the mobile phone industry and the gaming industry that threatens the viability of all competitors. There have already been approximately 250 million apps downloaded among the 6000 applications available.

Apple has brought the Internet to the next level. That level that everyone expected during the tech bubble has arrived. The efficiency of distribution is impossible for the traditional model to compete with. Consumers are eating this thing up. During a quarter in which consumers supposedly quit spending, Apple grew real revenue by 54.5% and grew net income by a staggering 81.2%. That kind of growth is absurd for a company as mature as Apple. That kind of growth is absurd during an economic collapse. But it happened. And it’s just beginning.

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