Apple shares dropped over 1% on Thursday and then followed this up on Friday with a further decrease of almost 2%. This was after a rally with everyone else during Wednesday, riding the wave crest of the fiscal cliff hysteria.
One fact that emerges is that in comparison to September last year, Apple stock has ridden the slippery slope down to 25% below its all time high. A theory put forward that seems popular, is that investors have been reining in because of tax related issues! However, this is countered by the fact that
Congress has resolved most of the tax complications related to the fiscal cliff drama.
Apple and Google could be the technical comparison to the classic Coke and Pepsi saga and it is therefore interesting to see Google (GOOG) enjoying momentum while Apple slides. Both stocks have merit and for any long term investor would be a welcome addition to their portfolio.
Although some traders attribute a bearish report concerning sales of iPads and iPhones from Deutsche Bank, as a contributing factor for the Apple stock decline, it could be considered over-reaction. It still remains an issue that the strength of Google does not appear sufficient to justify the Apple stock decrease.
Another factor that is being viewed is whether Apple has lost some of its innovative powers regarding products. This could be motivated by some critics impression that the iPhone 5 is just a larger relative of the iPhone 4S. This is enforced by the contention that the iPad Mini is just a small iPad.
For Apple supporters who are still positive that the stock will revive following January earnings, it would be greatly satisfying to give the doom and gloom Apple detractors a shock, with it exceeding estimates by a wide margin. This could be supported by firm direction and innovative products announcements in the next quarter!