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technology
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Is there a major uptrend in Apple stock over?
On 16th April, Apple stock has fallen over 3.5%. Is the uptrend over in the near term?
technologyunderstand
http://www.bloomberg.com/news/2012-04-23/apple-rally-stalls-on-investor-concern-mobile-growth-to-slacken.html
The sad and correct answer is that nobody knows, and there is absolutely no way you can find out.
The major uptrend in Apple's stock was led by Steve Jobs, and now he has passed away, there is no evidence that such an abnormally high growth trend will continue.
Apple wasn't just a company that sold products with their vertical intregation. They also had a visionary CEO who pioneered by creating new markets, and serving users unknowingly unfulfilled needs. Under Steve's reign, the iPhone alone managed to make more revenue than Microsoft. Yes. That's a fact.
The cult of Apple, market domination, and financial success, not only comes from the quality of their products and marketing, but also in their ability to imagine the future, by disruptively creating new markets.
Now Steve Jobs is gone, there is no evidence anywhere in the world that Tim Cook (Apple CEO) will be able to do the same. Will the Apple balloon stop being inflated? Nobody knows.
For all we know, Apple could lose its lackluster quality and stay complacent resting on its laurels, or make drastic changes and fail as a company, as it once did when Steve Jobs was kicked out his own company before. He only returned again once Apple nearly went bankrupt in his absense, so he was asked to return.
Let's not forget, companies losing their way after the CEO has gone has happened before. For an example that is close to home, look at Hewlett-Packard (company). All was going great for HP when they brough Palm, and they had good promise. Then the CEO quit, a new CEO ran HP who was inadequate, and he made Palm fail and decided to get out the PC market because it is a market of low-markup profits. The shareholders sacked him as he was ruining the company and making the share price plummet, and now HP has a new CEO.
The investment group I'm in has just purchased 5-8 shares of Apple stock for £1000 last week. It's a big risk to take, as the Apple proposal was only proposed because of reports of Apple having a skyrocketing revenue at this current moment, and no other reason. The decision was based on now, and not the future. The chairman of the investment group said it was a very risky stock to buy, and that the person needed a backup plan for if it failed.
The person didn't have a backup plan and didn't want to give one, and their argument went pretty much like this.
No research. No backup plan. No evidence. Zilch.
PS. You couldn't do research if you tried. How could you possibly assess Tim Cook (Apple CEO)'s performance? Seriously?
As the investment group is democratic, and the chairman wanted to teach the newbie a lesson, he decided to buy the Apple stock anyway, even though only 1 person wanted it while everyone else was in silence neither here or there.
He hedged the fund (so it will have 3% taken off the losses and profits), for in case it drastically falls, whatever that means! Also he responsibly brought a collection of stocks, for in case the Apple one fails.
I would invest in 2 technology companies, Amazon and Fujifilm. Why? Because they're making other companies out of business. So obviously other companies are losing money, for them to make even more money than they would have made, if that never happened. (Unlike Microsoft, which has remained at its steady rate for the past 10 years.)